Tennessee Business License: Who Needs One & How to Apply (2025)

What Is a Business License in Tennessee?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately. 

In Tennessee, all businesses that generate more than $3,000 in annual gross receipts are required to obtain a general business license, called a Business Tax License in the state. Depending on your location and the nature of your business, additional licenses or permits may also be required.

For example:

• A restaurant in Nashville will need a Business Tax License from Metro Nashville, a Food Service Establishment Permit from the Tennessee Department of Health’s Environmental Health Program, and if serving alcohol, permits from the Tennessee Alcoholic Beverage Commission.
• A real estate agent in Memphis will need a Real Estate License from the Tennessee Real Estate Commission and a Business Tax License from the City of Memphis.
• A retail clothing store in Knoxville will need a Business Tax License from the City of Knoxville and a Sales and Use Tax Certificate of Registration from the Tennessee Department of Revenue.
• A distillery in Chattanooga will need a Business Tax License from the City of Chattanooga, a Manufacturer’s License from the Tennessee Alcoholic Beverage Commission, and potentially a Federal Distilled Spirits Permit from the federal Alcohol and Tobacco Tax and Trade Bureau (TTB).

It all depends on what you do and where you’re located. Most businesses in Tennessee need a combination of local and state-level licenses and permits; though this will not be the case for every business.

Do I Need a Tennessee Business License?

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Tennessee Business Licensing at a Glance

Jurisdiction	License Type	Who Needs It & Where to Apply
Local	Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.	Varies by location Contact your city or county clerk’s office to determine local requirements.
State	State Business License (Business Tax License)	All in-state businesses earning more than $3,000 in gross sales per year Apply through the county clerk’s office where the business is located.
	Sales and Use Tax Certificate of Registration	Businesses selling taxable goods or services, or purchasing items for resale. Apply via Tennessee Department of Revenue.
	Professional Licenses	Required for professions (e.g., insurance agents, contractors, barbers, etc). Apply via the Tennessee Department of Commerce & Insurance.
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food, liquor, environmental, vehicle dealers)  Apply through the relevant Tennessee agency.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

How to Get a Business License in Tennessee

The process of obtaining a business license in Tennessee will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Tennessee

This step will depend on the business license in question.

Tennessee Local Business Licenses

Many Tennessee cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• Industry Permits: These include health permits required for restaurants, food trucks, and businesses handling food products. These are typically issued by your county health department (e.g., if your business is based in Shelby County, you would apply through the Shelby County Health Department’s Environmental Health Program).
• Zoning Permits: These ensure your business location is properly zoned for your intended use. Zoning laws determine what types of businesses can operate in residential, commercial, or industrial areas (e.g., if your business is in Franklin, you would verify zoning compliance with the City of Franklin Planning Department).
• Sign Permits: Required before installing any exterior business signage. These permits ensure signs meet local size, placement, and safety requirements (e.g., if your business is in Murfreesboro, you would apply through the City of Murfreesboro Building and Codes Department).
• Certificate of Occupancy: This certifies that a building meets all building codes and is safe for its intended use. It’s required before you can legally occupy a commercial space (e.g., if your business is in Clarksville, you would obtain this through the City of Clarksville Building and Codes Department).
• Home-Based Business Permits: If you’re operating a business from your residence, you may need to comply with home occupation ordinances which typically restrict signage, customer traffic, and employees (e.g., if your home business is in Johnson City, you would check requirements with the Johnson City Development Services).

You can check the Tennessee County Clerks Locations page to find contact information for your local county clerk’s office.

Tennessee State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

State Business License (Business Tax License)

A Tennessee Business Tax License is required for all in-state businesses earning more than $3,000 in gross sales per year. Even though this is a state requirement, you’ll need to apply through your city or county clerk’s office.

Apply through your city or county clerk’s office

Fee: $15

If your business earns between $3,000 and $100,000 per year in gross receipts, you’ll be issued a Minimal Activity License.This is the same as the standard business license, with the only difference being that it does not require annual filing with the Department of Revenue.

Tennessee Seller’s Permit 

If you’re selling physical goods, you will need a seller’s permit, also known as the Sales and Use Tax Certificate of Registration. You can register for a Tennessee seller’s permit online through the Department of Revenue at no cost.

Apply through the Tennessee Department of Revenue

Apply Online

Fee: None

Keep in mind that you’ll need a NAICS code in order to apply. For more information on this, you can have a look at our Tennessee Sales Tax guide.

Tennessee Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Tennessee Department of Commerce & Insurance: Oversees licensing for insurance agents and adjusters, real estate agents and brokers, contractors, home inspectors, and collection services.
• Tennessee State Board of Accountancy: Regulates the licensing of Certified Public Accountants (CPAs) and accounting firms operating in Tennessee.
• Tennessee Board of Cosmetology and Barber Examiners: Issues licenses for cosmetologists, barbers, manicurists, aestheticians, and related beauty professionals.
• Tennessee Health Professional Boards: Oversees multiple healthcare professions including physicians, nurses, dentists, pharmacists, physical therapists, and other medical practitioners.
• Tennessee Board of Architectural and Engineering Examiners: Licenses architects, engineers, landscape architects, and interior designers.
• Tennessee Board of Law Examiners: Handles the licensing and admission of attorneys to practice law in Tennessee.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Tennessee businesses require additional licenses based on the particular industry they operate in. These licenses are issued by specific state agencies and must be obtained before the business can legally operate.

Here are some common examples of industry-specific state licenses in Tennessee:

• Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the Tennessee Alcoholic Beverage Commission. Tennessee has various license types including on-premise consumption, off-premise retail, and manufacturer licenses.
• Motor Vehicle Dealer License: Required for anyone engaged in the business of selling five or more motor vehicles within any consecutive 12-month period. Regulated by the Tennessee Motor Vehicle Commission.
• Child Care License: Required for facilities providing care for five or more children who are not related to the operator. Regulated by the Tennessee Department of Human Services.
• Tobacco License: Required for wholesalers who sell, distribute, or handle cigarettes or other tobacco products. Regulated by the Tennessee Department of Revenue.
• Private Investigation License: Required for private investigators and private investigation companies. Regulated by the Tennessee Department of Commerce & Insurance.

Tennessee Environmental Permits

If your business activities could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Tennessee Department of Environment and Conservation.

Examples of industries regulated here include:

• Underground Storage Tank Registration: Required for businesses operating underground storage tanks containing petroleum or hazardous substances over 1,100 gallons. This includes gas stations, fleet operations, and facilities with heating oil tanks.
• Air Quality Permits: Required for facilities that emit air pollutants, including manufacturing plants, dry cleaners, auto body shops, and printing operations. Different permit types exist based on emission levels.
• Stormwater Permits: Required for construction sites disturbing one or more acres of land and for industrial facilities with outdoor operations that could contaminate stormwater runoff.
• Hazardous Waste Generator ID: Required for businesses that produce hazardous waste, including auto repair shops, medical facilities, and manufacturers. Different requirements apply for small quantity generators versus large quantity generators.
• Water Quality Permits: Required for any facility discharging wastewater or stormwater into Tennessee waters, including car washes, food processors, and industrial facilities.
• Wetlands Permits: Required through the Aquatic Resource Alteration Permit program for activities impacting streams, wetlands, or other waters of the state, including construction projects and land development.
• Solid Waste Processing Permit: Required for facilities that process, store, or dispose of solid waste, including recycling centers, composting facilities, and transfer stations.
• Water Withdrawal Registration: Required for facilities withdrawing 10,000 gallons or more per day from surface or groundwater sources.

Federal Business Licenses for Tennessee LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration.
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

Tennessee Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years. 

This is not required for a Sales and Use Tax Certificate of Registration unless you change the form of your business (e.g., start as a disregarded entity and then convert into a C Corp, etc). 

The Business Tax License must be renewed annually, as is the case with most professional licenses, which are typically renewed on an annual or biennial basis depending on the specific licensing board.

Several of the local permits will also need to be renewed annually; this includes health department permits, signage permits, and fire department permits, which generally all need to be renewed annually.

Having said that, this will depend on both your location and the license in question.

Tennessee Business License FAQs

Quick Resources

• Tennessee Department of Revenue
• Tennessee Secretary of State Business Services
• Tennessee Department of Commerce & Insurance
• Tennessee County Services Association