Start your business in Tennessee! Learn regulations, funding, resources to launch your venture.
Key Steps to Register Your Business
Choose Your Business Structure
To successfully register your business in Tennessee, it’s crucial to familiarize yourself with these essential steps.
- Step 1: Choose Your Business Structure. The optimal framework for your company in Tennessee is contingent upon the characteristics of your business. The cost of registering ranges between $50.00 and $3,000.00, depending on the legal structure you choose.
Licenses and Taxes
- You must find licenses and permits your business requires to operate in Tennessee.
- Who pays business tax in TN? The business tax is imposed generally on anyone delivering goods or services to Tennessee customers, with specific exemptions.
- Do sole proprietors pay business tax in Tennessee? Only general partnerships and sole proprietorships are exempt.
- Tennessee’s excise tax effectively is an income tax, which is a flat 6.5% tax on net earnings from doing business in the state.
Registration and Naming
- If you decide to use a “doing business as” (DBA) name, ensure you are properly registered on a state, county, and/or city level.
- The license should cost around $15 for a sole proprietorship. Contact the county clerk for the county where your principal place of business is located.
- In Tennessee, sole proprietors and partnerships can use their full, legal names as their business name.
Zoning and Location
- You must check Tennessee zoning regulations. Business locations are regulated by zoning laws.
Important Information about Business Licenses
General Business License
- For each new business, there is a $15 business license registration fee that must be paid to the county and/or municipal clerk.
- Plan for it to take up to 10 business days for the Department of Revenue to register your business.
Sales Tax Registration
- When to register to collect sales tax in Tennessee? Follow the state’s sales tax nexus rules.
Costs and Considerations for Licenses
- How much does a Tennessee business license cost? The cost to obtain a sales tax certificate in the state of Tennessee is $15. Costs for other licenses vary greatly depending on the type of license and permit as well as the licensing jurisdiction.
- Most cities in Tennessee carry a general business license that covers tax compliance in that area.
Additional Tips and Resources
Operating Without a License
- Can I operate a business without a license in Tennessee? No, in most cases, it is not legal.
- What happens if I operate a business without a license in Tennessee? You may face penalties or fines from the government.
Obtaining an EIN
- How do I get an EIN number in Tennessee? If applying online isn’t an option, you can complete Form SS-4 and send it to the IRS.
Tennessee provides a favorable climate for launching a business, offering a large customer base and an advantageous tax environment. Remember, establishing a business requires thorough planning and consideration of legal structures, obtaining necessary licenses, and ensuring tax compliance.