Starting a business in Tennessee Checklist
Check business name availabilityDo a name search to see if your business name is available: https://tnbear.tn.gov/Ecommerce/NameAvailability.aspx Tennessee Department of StateTennessee Department of State |
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File papers to create your businessYou can file the paper forms or you can form your corporation or LLC online at https://tnbear.tn.gov/Ecommerce/RegistrationInstr.aspxThe filing fee for corporations is $100. The fee for LLCs is $50 per member with a $300 minimum. State processing will take 2-4 days. If you don’t want to complete your business’ filing on your own, you can incorporate in Tennessee with Northwest Registered Agent. Division of Business ServicesTennessee Department of State |
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Register with the Department of RevenueYou can register for most taxes online, including sales and use tax, franchise tax and your city/county business tax. Sales Tax:The sales tax rate on food is 5%. The rate for all other goods is 7%. Income Tax:the individual income tax rate is 6% Franchise and Excise Taxes:Franchise and excise taxes are imposed on all corporations, LLCs, LPs, and business trusts registered or doing business in Tennessee. Franchise tax is.25% of the greater of net worth or real and tangible property in Tennessee. The minimum tax is $100. Professional Privilege Tax:Tennessee imposes a $400 annual tax on individuals with an active license to practice certain occupations. TN Department of RevenueTennessee Department of Revenue |
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Get a business licenseThere is no general state business license but you may need a business license based on your location or occupation. Always check with your city and county government for details. Any other registration requirements?The Business License Tax is imposed at the city and county level. You can pay when you register online with the Department of Revenue or you can contact your city and county government(s). Your business may need other local licenses and permits in addition to the business tax license. Shelby CountyIf you are doing business in Shelby County, you will need a business tax license from the County Clerk’s office. Businesses located in Memphis get their city/county combined license from the Shelby County Clerk. Businesses in unincorporated areas also get their Shelby County license from the County Clerk. However, businesses in other cities should contact their town/city government regarding the business tax license. City of MemphisIf your business is located in Memphis, you need a combined Shelby County-City of Memphis business tax license. Contact the Shelby County Clerk to get the license. Davidson CountyIf you are doing business in Davidson County, you will need a business tax license from the County Clerk’s office. Businesses located in Nashville get their combined license from the Davidson County Clerk. City of NashvilleBusinesses located in Nashville need a combined Davidson County-City of Nashville License from the Davidson County Clerk. Nashville businesses may also need additional licenses/permits from the city. Local License InfoShelby County – City of MemphisCounty Clerk’s Office Davidson CountyCounty Clerk City of NashvilleMetro Office Building – 3rd Floor |
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Collect and Charge Sales TaxDo I need to collect sales tax?Tennessee sales tax is imposed on all retail sales, leases and rentals of most goods, and certain services. What is the Tennessee sales tax rate?The rate for most goods is 7%. The sales tax rate on food is 5%. How do I register for Tennessee sales tax?Fill out an Application for Registration and submit it to the Department of Revenue. You can download an application online or request one from the Taxpayer Services Division. How much does a Tennessee sales tax permit cost?No fee Tennessee Department of RevenueTennessee Department of Revenue |
