Does a Sole Proprietor Need a Business License in TN?

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Guide to Starting a Sole Proprietorship in Tennessee

  • A sole proprietorship has no separate legal entity from the owner.
  • You must first choose a business name and ensure it does not infringe on trademarks.
  • Some industries like medical require additional licenses.
  • 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.
  • Businesses with less than $10,000 in taxable sales are exempt from taxes.

Licensing and Registration in Tennessee

  • To register your DBA, submit an Assumed Name application to the county clerk’s office.
  • You may need federal licenses for certain industries like alcohol and agriculture.
  • Consider tax credits and payroll solutions.

Business Licensing in Tennessee

  • Businesses with less than $10,000 in taxable sales are exempt from taxes.
  • Most businesses selling goods/services pay business tax, register with the state to pay.
  • The most common business license needed is the business tax license.
  • There is no single generic business license that ensures compliance with all requirements.

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