Do I Need a Business License in TN? Tennessee Business Licensing Guide

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General Business License Requirements

Do I need a Tennessee business license? There isn’t a requirement in Tennessee for sole proprietors to acquire a general business license, but depending on the nature of your business you may need other licenses and/or permits to operate in a compliant fashion.

For many, launching a new business in Tennessee is both exciting and challenging. Most businesses will need at least one license or permit at the federal, state, and/or county level. There is no universal Tennessee business license.

Business License Exemptions

Who is exempt from a business license in Tennessee? Businesses with less than $10,000 in taxable sales sourced to a county are exempt from the state business tax in that county, and businesses with less than $10,000 in taxable sales sourced to a municipality are exempt from the municipality business tax in that municipality.

Starting a Small Business in Tennessee

How do I register my small business in Tennessee? Follow these steps:

  • Apply for an Employer Identification Number (EIN) from the IRS: IRS.gov EIN Site
  • Register with the TN Secretary of State
  • Register with the TN Dept. of Revenue
  • Obtain a business license with your local county and/or municipality (read this first)
  • Register with the TN Department of Labor and Workforce Development, if applicable

If you decide to use a “doing business as” (DBA) name, our DBA guide will help ensure you are properly registered on a state, county, and/or city level.

Understanding Specific Licensing Needs

The most common business license needed is the business tax license. However, you must find licenses and permits your business requires to operate in Tennessee. If you’re considering using a DBA name, refer to our DBA guide for proper registration.

Step-by-Step Licensing Process

Obtaining a business license in Tennessee is essential for legally operating your business. Here is a step-by-step guide to help you navigate the process:

  1. Identify the Type of License You Need
  2. Provide Accurate Documentation
  3. Submit Your Application
  4. Pay Required Fees

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