To establish a sole proprietorship in Tennessee, you do not need to file any legal documents with the state. Depending on the nature of your business, you may need licenses and/or permits to operate legally.
Business Name and Licensing
You must first choose a business name and ensure it does not infringe on trademarks. Conduct a search to verify availability. A sole proprietorship has no separate legal entity from the owner.
If your annual gross sales exceed $100,000 you need a standard business license. For sales between $3,000 and $100,000, you need a minimum activity license. Some industries, like medical, require additional licenses.
Registration and Compliance
To register your DBA (Doing Business As), submit an Assumed Name application to the county clerk’s office. You may need federal licenses for certain industries like alcohol and agriculture.
Tennessee has low business costs and good access to capital. To start, create a business plan and establish a legal entity. Name your business, obtain funding, and acquire necessary licenses. Consider tax credits and payroll solutions.
Do Sole Proprietors Pay Business Tax in Tennessee?
If your annual gross sales exceed $100,000 you need a standard business license. For sales between $3,000 and $100,000, you need a minimum activity license.