A sole proprietorship is the simplest business form to register in Tennessee. You can just start working under your legal name and use your Social Security Number as your tax ID. To establish a sole proprietorship in Tennessee, you do not need to file any legal documents with the state. This simple and inexpensive business structure is the most common in the United States. In a sole proprietorship, the owner is personally liable for the business’s debts and obligations.
Hiring Employees and Registering a DBA
You can hire employees as a sole proprietor in Tennessee. This may require obtaining an EIN and complying with employment laws. The filing and issuing of DBA’s for sole proprietorships is done at the county level in Tennessee. To register your DBA you’ll need to:
- Submit your Assumed Name application to the county clerk’s office
- Pay a filing fee
Sole proprietorships are subject to business and professional licensing requirements. Licenses are issued at the federal, state, and local levels.
Licenses and Taxes
Who is exempt from a business license in Tennessee?
- Businesses with less than $10,000 in taxable sales are exempt from taxes.
If your Tennessee sole proprietorship involves selling taxable goods or services, you may need to register for a Tennessee Sales Tax Certificate to collect and remit sales tax.
Dissolving a Sole Proprietorship in Tennessee
To dissolve a Tennessee sole proprietorship, you simply cease operations. There is no dissolution paperwork required.
The types required will vary widely depending upon the nature of your business and how it operates.
Discover steps to start business in Tennessee! Establish business considering the large population—opportunities to cater to many customers. Follow the guide on starting a business.