Here's what you need in Tennessee
Official state business portal: TN.gov Business: New Businesses. The state business page links new owners to online business registration, tax registration and business resources.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseBusiness License (minimal activity or standard). Tennessee has a general business license. In state businesses with gross receipts above a small yearly amount need a minimal activity or standard license from the county and city clerk, and larger businesses also register for business tax. | Tennessee Department of Revenue, with your county and city clerk | $15 registration fee | Source | Nov 7, 2026 |
| Form an LLCArticles of Organization, Limited Liability Company (SS-4270). To form an LLC in Tennessee, file Articles of Organization with the Secretary of State. The fee depends on the number of members. | Tennessee Secretary of State | $50 per member, at least $300 and at most $3,000 | Source | Nov 7, 2026 |
| Business name (DBA)Application for Registration of Assumed Name (SS-4402). Corporations, LLCs and limited partnerships that do business under an assumed name file an Application for Registration of Assumed Name with the Tennessee Secretary of State. | Tennessee Secretary of State | $20 filing fee | Source | Nov 7, 2026 |
| Sales tax permitSales and Use Tax Certificate of Registration. Anyone who sells, rents or leases goods or provides taxable services in Tennessee must register with the Department of Revenue before starting business. Register online through TNTAP. | Tennessee Department of Revenue | Fee not published.Ask the agency | Applyat tntap.tn.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Unemployment Insurance Employer Registration. Employers liable for unemployment insurance premiums register as a new employer on Jobs4TN.gov and get an eight digit employer account number. | Tennessee Department of Labor and Workforce Development | You pay tax on wages | Applyat jobs4tn.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Tennessee pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual ReportEvery Tennessee LLC files an annual report with the Secretary of State each year. The fee depends on the number of members. Not filing an annual report can lead to administrative dissolution. | Tennessee Secretary of State | $300 a year, plus $50 per member over 6, up to $3,000 | Applyat sos.tn.govSource | Nov 7, 2026 |
| Franchise and excise taxLLCs registered in Tennessee must register for and pay franchise and excise taxes to the Department of Revenue. The franchise tax is based on net worth and has a minimum that is owed even if the company is inactive. The excise tax is based on net earnings. Some entities are exempt, so check the Department of Revenue page. | Tennessee Department of Revenue | $100 a year minimum franchise tax, plus excise tax on earnings | Applyat tn.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonShop License (cosmetology, barber, manicure and others). Hair salons, barber shops and nail salons need a shop license from the Board of Cosmetology and Barber Examiners, which licenses both cosmetology and barber shops. | Tennessee Board of Cosmetology and Barber Examiners | $150 for a new shop, $200 for a dual shop | Source | Nov 7, 2026 |
| Child care in your homeFamily Child Care Home License. A family child care home cares for at least 5 and no more than 7 children who are not related to the caregiver, and it must be licensed by the Department of Human Services. | Tennessee Department of Human Services | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)Liquor-by-the-Drink License. Restaurants, hotels and clubs that serve spirits, wine or high gravity beer need a Liquor-by-the-Drink license from TABC. For a beer permit, contact your local beer board. | Tennessee Alcoholic Beverage Commission (TABC) | Restaurant: $650 to $1,200, based on seats | Applyat tn.govSource | Nov 7, 2026 |
| General contractorContractor License. Contractors are licensed by the Tennessee Board for Licensing Contractors, which also licenses home improvement contractors, limited licensed electricians and limited licensed plumbers. | Tennessee Board for Licensing Contractors | $250 initial license fee | Source | Nov 7, 2026 |
| Selling homemade food (cottage food)Tennessee Food Freedom Act. Foods made in a home kitchen under the Tennessee Food Freedom Act are exempt from state licensing, permits and inspection. The Department of Agriculture does not issue permits for them. | Tennessee Department of Agriculture | Not needed | Source | Nov 7, 2026 |
What is different in Tennessee
- At $300, the LLC filing fee is among the highest: only 1 of 49 verified states charge more.
- Business names (DBAs) are filed with the state, at the Tennessee Secretary of State. At $20, the state DBA fee is among the lowest: only 6 of 33 verified states charge less.
- Contractor licensing in Tennessee: Contractors are licensed by the Tennessee Board for Licensing Contractors, which also licenses home improvement contractors, limited licensed electricians and limited licensed plumbers.
- At $150, the salon or shop license fee is near the middle: 21 of 36 verified states charge less and 13 charge more.
- Annual Report: $300 a year, plus $50 per member over 6, up to $3,000. Every Tennessee LLC files an annual report with the Secretary of State each year. The fee depends on the number of members. Not filing an annual report can lead to administrative dissolution.
- Franchise and excise tax: $100 a year minimum franchise tax, plus excise tax on earnings. LLCs registered in Tennessee must register for and pay franchise and excise taxes to the Department of Revenue. The franchise tax is based on net worth and has a minimum that is owed even if the company is inactive. The excise tax is based on net earnings. Some entities are exempt, so check the Department of Revenue page.
Steps to start a business in Tennessee
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Articles of Organization, Limited Liability Company (SS-4270) with the Tennessee Secretary of State ($50).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the Tennessee Secretary of State.
Register for sales tax
If you sell taxable goods or services, get your permit from the Tennessee Department of Revenue before your first sale.
Get the state business license
Business License (minimal activity or standard), from the Tennessee Department of Revenue, with your county and city clerk.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Tennessee Department of Labor and Workforce Development.
City and county permits
Cities and countys in Tennessee can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
In the biggest cities, ask these local governments:
- Nashville: the Metropolitan Government of Nashville and Davidson County. Business license (Metro County Clerk) (nashville.gov), City of Nashville (nashville.gov)
- Memphis: the city, and Shelby County. City of Memphis (memphistn.gov)
City rules and fees are not in our guide yet.
Questions about business licenses in Tennessee
Do I need a business license in Tennessee?
Only some businesses. Tennessee has a general business license. In state businesses with gross receipts above a small yearly amount need a minimal activity or standard license from the county and city clerk, and larger businesses also register for business tax. The official fee is $15 registration fee.
How much is a business license in Tennessee?
The Business License (minimal activity or standard) costs $15 registration fee. Your city or county may charge for its own license too.
How much is an LLC in Tennessee?
The Tennessee Secretary of State charges $50 per member, at least $300 and at most $3,000 to file the Articles of Organization, Limited Liability Company (SS-4270). To form an LLC in Tennessee, file Articles of Organization with the Secretary of State. The fee depends on the number of members.
How much does an LLC cost per year in Tennessee?
Annual Report: $300 a year, plus $50 per member over 6, up to $3,000. Every Tennessee LLC files an annual report with the Secretary of State each year. The fee depends on the number of members. Not filing an annual report can lead to administrative dissolution. Franchise and excise tax: $100 a year minimum franchise tax, plus excise tax on earnings. LLCs registered in Tennessee must register for and pay franchise and excise taxes to the Department of Revenue. The franchise tax is based on net worth and has a minimum that is owed even if the company is inactive. The excise tax is based on net earnings. Some entities are exempt, so check the Department of Revenue page.
Does an LLC need a business license in Tennessee?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Tennessee still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Tennessee?
Yes, if you sell taxable goods or services. Anyone who sells, rents or leases goods or provides taxable services in Tennessee must register with the Department of Revenue before starting business. Register online through TNTAP.
How much is a DBA in Tennessee?
Corporations, LLCs and limited partnerships that do business under an assumed name file an Application for Registration of Assumed Name with the Tennessee Secretary of State. Official fee: $20 filing fee.
Can I sell homemade food from home in Tennessee?
Foods made in a home kitchen under the Tennessee Food Freedom Act are exempt from state licensing, permits and inspection. The Department of Agriculture does not issue permits for them.
Do contractors need a state license in Tennessee?
Contractors are licensed by the Tennessee Board for Licensing Contractors, which also licenses home improvement contractors, limited licensed electricians and limited licensed plumbers. Official fee: $250 initial license fee.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license Tennessee Department of Revenue, with your county and city clerk Checked Nov 7, 2026
- Form an LLC Tennessee Secretary of State Checked Nov 7, 2026
- Business name (DBA) Tennessee Secretary of State Checked Nov 7, 2026
- Sales tax permit Tennessee Department of Revenue Checked Nov 7, 2026
- Unemployment insurance (once you hire) Tennessee Department of Labor and Workforce Development Checked Nov 7, 2026
- Official business portal State of Tennessee Checked Nov 7, 2026
- Hair salon, barber shop or nail salon Tennessee Board of Cosmetology and Barber Examiners Checked Nov 7, 2026
- Child care in your home Tennessee Department of Human Services Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Tennessee Alcoholic Beverage Commission (TABC) Checked Nov 7, 2026
- General contractor Tennessee Board for Licensing Contractors Checked Nov 7, 2026
- Selling homemade food (cottage food) Tennessee Department of Agriculture Checked Nov 7, 2026
- Annual Report Tennessee Secretary of State Checked Nov 7, 2026
- Franchise and excise tax Tennessee Department of Revenue Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026