How to start a business in Tennessee

What do you file before you open in Tennessee?

1. Pick a structure

   Most owners choose an LLC or a corporation; the S corp or C corp tax choice comes later. See Tennessee LLC guide, Tennessee corporation guide, S corp or C corp in Tennessee. By trade: cleaning business, handyman.

2. Check and register the name

   Search the Secretary of State records before you pick a name: state name search. The Tennessee Secretary of State registers an entity's assumed name on an Application for Registration of Assumed Name, which carries a $20 filing fee. ¹ See Tennessee name search guide.

3. File with the state

   Tennessee charges the state filing fee once: an LLC costs $300 ² and a corporation's articles of incorporation cost $100 ³. See LLC cost.

4. Name a registered agent

   A Tennessee registered office must be a physical Tennessee address, not a post office box, route number or box number alone. ⁴ Our registered agent service runs through our partner Registered Agents Inc (RAI), the registered agent of record. See Tennessee registered agent rules.

Which accounts do you open after you file in Tennessee?

1. Get an EIN

   An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. ⁵

2. Open your state tax accounts

   The Tennessee Department of Revenue runs the Tennessee Taxpayer Access Point, the website where a business registers, files, pays and maintains its tax accounts. ⁶ See Sales tax permit.

3. Register as an employer

   A new Tennessee employer registers with the Department of Labor and Workforce Development on Jobs4TN.gov, using Unemployment Employer e-Services, to set up its unemployment insurance tax account. ⁷ Tennessee employers report each newly hired or rehired employee to the Department of Labor and Workforce Development within 20 days of the hire date. ⁸ Tennessee requires workers' compensation insurance for all construction employers and for most other employers with 5 or more employees, under the Bureau of Workers' Compensation. ⁹

What keeps your Tennessee business in good standing?

1. Check licenses and permits

   The Tennessee Department of Revenue says in-state businesses generally need a business license, issued by the city clerk and county clerk at $15 each, though none applies under $3,000 in gross sales. ¹⁰

2. Calendar the yearly filings

   Tennessee annual report: $300, due the 1st day of the 4th month after your fiscal year end. ¹¹ See Tennessee annual report.

3. Use free local help

   Small business advising in Tennessee runs through the Tennessee Small Business Development Centers. ¹² The Tennessee Secretary of State lists online links to the state departments and boards a new business may need to contact, including the Department of Revenue's new business guide. ¹³

What it costs to start a business in Tennessee

Do you need a business license in Tennessee?

Often, yes. Tennessee's business license rule covers many businesses but not all of them; the conditions are in step 8. ¹⁰ Where to look up licenses: Next Steps for a New Business.

How to register a business name in Tennessee

Check that the name is free first: state name search.

Also in Tennessee

• Tennessee Lawful Employment Act. Tennessee's Lawful Employment Act requires employers to show a legal workforce, and private employers with 35 or more full-time equivalent employees under one FEIN must use E-Verify. ¹⁵
• Business address cannot be a P.O. box. The Tennessee Department of Revenue says a business's location address cannot be a post office box, while the mailing address is where the department sends its letters. ¹⁶

More for Tennessee

• LLC guide
• Corporation guide
• Tennessee LLC cost
• Name search
• Registered agent
• Tennessee sales tax permit
• Annual report
• S corp or C corp

Common questions