Tennessee Business License Requirements for an LLC

A Tennessee business license gives your Limited Liability Company (LLC) permission to operate in a certain location or within a specific industry.

We can’t walk you through any applicable license applications step-by-step, because every business is unique. But we do provide helpful resources like:

• information about state licensing rules
• instructions for researching municipal licenses

And if you want to just hire a company to do the research for you, we have a recommendation below.

Tennessee Business License Requirements

After you form a Tennessee LLC, you may need to obtain a business license or permit.

Your requirements are determined by the industry you are in and where your Tennessee Limited Liability Company is located.

Because of the large number of industries and all of the municipalities in Tennessee, it’s not possible for us to explain them all. However, you can use the search tools below, call your local municipality, or hire a company for help.

How to get a Business License in Tennessee

You can obtain a business license in Tennessee by applying with the relevant licensing or regulatory agency. The agency you apply with will depend on where your business is located and what business activities it engages in.

The business license application typically requires basic information, such as your LLC name, EIN Number, business address, and contact information. Many also include a questionnaire that asks about your business activity.

There are three main licensing jurisdictions:

• State licensing
• Local licensing, such as county, city, township, etc.
• Federal licensing

Does Tennessee Require a Business License?

That depends on where your business is located, and what it does.

There are two types of state-level business licenses:

• a general business license
• and an occupational license

Tennessee General Business License

Some states have a general license requirement, which means all businesses operating in those states must have the license, regardless of what they do.

Although Tennessee doesn’t have a general business license requirement, you do have to register with the Department of Revenue. Tennessee has a state Business Tax that applies to almost every company doing business in Tennessee.

You can review the Business Tax Manual from the Department of Revenue to see if your LLC is exempt from the business tax.

Tennessee Business Tax Registration

Almost every business operating in Tennessee must register for the Tennessee Business Tax.

The Tennessee Department of Revenue’s Registration and Licensing page will guide you through the process. The registration fee is $15.

Online Registration for Business Tax

All new businesses must register using TNTAP.

First, create a TNTAP username and password.

Then from the dashboard, click “View Registration Links” in the Registration/Exemption section.

On the next screen, click “Register a New Business” and complete the form.

Tips:

• You will need your LLC EIN Number to complete this registration.
• If you formed an LLC in Tennessee, your “State of Original Charter/Certification” will be Domestic.
• If you formed an LLC in another state and are registering it in Tennessee, you’re a Foreign LLC.

The system will also allow you to register for a variety of other tax licenses from the Department of Revenue.

Tennessee Occupational License

Most states have occupational business license  . This means a license or permit may be required depending on what your business does or what your occupation is. (This license is sometimes referred to as an “industry-specific” license.)

For example, if you sell used cars, or run a hair salon, you may need an occupational business license. But a license may not be required for other types of businesses.

The Tennessee Department of Commerce & Insurance Licensing & Regulations page can help you determine if your Tennessee business needs an occupational license or permit, and which agency to contact about applying for the license. Look through the list of licensed occupations and industries on the left side of the page.

You can look through this list of Regulatory Boards to see if your industry or occupation needs a business license in Tennessee.

You can also contact the Department of Commerce & Insurance with questions. Or you can contact the relevant Regulatory Board or Commission directly.

Note: Tennessee business licenses are not issued by the Secretary of State. The Secretary of State is responsible for business entity administration, for example Limited Liability Company formation.

How much is a Tennessee Business License?

Tennessee doesn’t have a general business license at the state level, so there are no fees there. But the Business Tax registration with the Department of Revenue costs $15, and almost every Tennessee LLC must file that registration.

However, your business may need a state-level occupational license or municipal-level license or permit to operate. The filing fee for these licenses will vary depending on where you’re doing business and what industry you’re in. To be honest, we can’t predict your specific Tennessee business license cost.

For example, licenses issued by a county that contains a large city are usually more expensive than licenses in less populated, rural counties. And licenses for regulated industries, like child care facilities, are usually more expensive than generic business licenses.

But your LLC might not need a license or permit at all. So your Tennessee business license cost could be $0.

See LLC Cost in Tennessee to learn about all the possible LLC fees.

Municipal Business License

Municipal business licenses can be issued by the city, town, county, parish, township, borough, etc. We refer to all of these as a “municipality” to keep things simple.

There are two types of municipal business licenses:

• general business license
• industry-specific license

For example, if a municipality has a general business license requirement, all businesses operating in that municipality must have the license, regardless of what they do.

And if a municipality has industry-specific business licenses, a license or permit may be required depending on what your business does. For example, if you operate a food truck, or run a daycare, you may need an industry-specific municipal business license. Or if you’re purchasing or leasing real estate, you may need a zoning permit.

But a license may not be required for other types of businesses, like making wedding invitation templates or offering marketing consulting.

You can contact your municipality to check on their local licensing requirements. The University of Tennessee’s Institute for Public Service has convenient links to county and city websites:

• UT County Technical Assistance Service: County Websites
• UT Municipal Technical Advisory Service: Municipal Websites

And make sure to check whether your city has a business tax. This is not a business license, but registering for the business tax and paying it every year is important to keep your LLC in good standing.

Tennessee Sales Tax License

If you sell products to consumers in Tennessee, you may need to collect sales tax and file a Sales and Use Tax Return.

If your business activities are subject to sales and use tax, your LLC must register with the Department of Revenue.

Note: This requirement will apply whether you sell products online or in a physical location in Tennessee.

You can register for sales tax with the Department of Revenue online using TNTAP. You can do this at the same time you register for the Tennessee Business Tax (described above).

For additional information about the Sales and Use Tax in Tennessee, check out the Tennessee Department of Revenue’s Sales and Use Tax page.

Review the Department of Revenue’s Tax Manuals for detailed information about what taxes (and registrations) apply to your company.

Do I need any federal business licenses?

Most businesses in Tennessee don’t need a federal business license. However, certain industries do need federal licenses:

Check out the Small Business Administration’s Licenses and Permits page for a full list of industries with federal license requirements.

If your business isn’t one of these special cases, then the only federal requirements are that your LLC get a Tennessee EIN Number (aka Federal Employer Identification Number) and that you file taxes.

Tennessee Business License FAQs

Matt Horwitz

Founder & Educator, LLC University®

Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.