Tennessee LLC Business Licenses & Permits (2026)
For otherwise covered in-state business activity, annual gross receipts of $3,000 or less do not require the minimal-activity license (it may be obtained voluntarily); more than $3,000 but less than $100,000 generally requires a $15 annually renewed minimal-activity license, without business-tax registration/payment for that location. At $100,000 or more, review standard business licensing and business-tax registration/payment. Apply the test in the actual county and, where the municipality imposes business tax, city; city licensing is conditional. Activity exemptions and out-of-state contractor rules require separate review.
For otherwise covered in-state business activity, annual gross receipts of $3,000 or less do not require the minimal-activity license (it may be obtained voluntarily); more than $3,000 but less than $100,000 generally requires a $15 annually renewed minimal-activity license, without business-tax registration/payment for that location. At $100,000 or more, review standard business licensing and business-tax registration/payment. Apply the test in the actual county and, where the municipality imposes business tax, city; city licensing is conditional. Activity exemptions and out-of-state contractor rules require separate review. State sales tax is generally7%, with local rates up to2.75%; activity-specific tax and professional licensing checks remain separate.
- Statewide general license
- None
- County/city business license
- Receipts/activity dependent; city conditional
- Threshold
- ≤$3k optional; >$3k–<$100k minimal; ≥$100k standard
- Sales tax permit
- TN Dept. of Revenue
- State sales tax rate
- 7% + local up to 2.75%
- Combined average
- Use actual taxable item and destination rate
County & City Business Licenses
For otherwise covered in-state business activity, annual gross receipts of $3,000 or less do not require the minimal-activity license (it may be obtained voluntarily); more than $3,000 but less than $100,000 generally requires a $15 annually renewed minimal-activity license, without business-tax registration/payment for that location. At $100,000 or more, review standard business licensing and business-tax registration/payment. Apply the test in the actual county and, where the municipality imposes business tax, city; city licensing is conditional. Activity exemptions and out-of-state contractor rules require separate review.
Find Your Likely Stack
Tennessee License Finder
Choose an activity to see conditional licenses and registration checks.
Use actual gross receipts, jurisdiction and activity. The checklist does not determine a license or exemption automatically.
Sales Tax Permit
- State rate — 7%: register with the Department of Revenue before making taxable sales.
- Local add-ons — up to 2.75%: combined rates commonly reach 9–9.75%, among the highest in the Southeast.
- SaaS and digital goods are taxable: Tennessee taxes software-as-a-service and specified digital products — don't assume you're exempt just because you're not selling a physical item.
- Economic nexus: $100,000 in gross Tennessee sales in a calendar year triggers a collection obligation, even without a physical presence.
Professional Licensing
Tennessee licenses regulated professions — contractors, cosmetologists, real estate agents, accountants, healthcare providers — through the relevant state board. Restaurants clear local health departments; alcohol runs through the Tennessee Alcoholic Beverage Commission plus local approval. Your LLC never substitutes for the professional license — verify your board's rules before the first client.
Check the county and any municipality that imposes business tax using the correct receipts tier. Verify activity-specific sales/use tax, professional and local requirements before operating.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities. Government fee reference: $300 minimum state fee.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities.
- ✓Confirm registered-agent eligibility, coverage, included periods and renewal charges.
- ✓Review address-use rules and privacy policies; a service does not remove all information from public filings.
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Business-license tiers and remote sales
For otherwise covered in-state business activity, annual gross receipts of $3,000 or less do not require the minimal-activity license (it may be obtained voluntarily); more than $3,000 but less than $100,000 generally requires a $15 annually renewed minimal-activity license, without business-tax registration/payment for that location. At $100,000 or more, review standard business licensing and business-tax registration/payment. Apply the test in the actual county and, where the municipality imposes business tax, city; city licensing is conditional. Activity exemptions and out-of-state contractor rules require separate review. For sales/use tax, an out-of-state dealer without physical presence generally reaches economic nexus when retail sales to Tennessee consumers exceed $100,000 during the previous 12 months, including taxable and exempt retail sales but excluding resale. Register and begin collection on the first day of the third month after the threshold month. Marketplace collection and direct sales must be reviewed separately; this is not the county/city business-tax licensing threshold.
Tennessee LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.
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