Tennessee Business Licenses — What Your LLC Needs

Tennessee requires a state-level business license for most businesses generating income. Additionally, cities like Nashville, Memphis, and Knoxville have their own requirements. For all compliance, see our after-formation guide. For formation, see how to form a Tennessee LLC.

Tennessee State Business License

Unlike many states, Tennessee requires a general state business license:

• Required for: Most businesses conducting commerce in Tennessee
• Issued by: County Clerk in the county where you do business
• Cost: Minimal (varies by county, typically $15-$50)
• Type: Based on your classification (contractor, retailer, professional, etc.)

City/Municipal Licenses

• Nashville/Davidson County: Metro Business License required (nashville.gov)
• Memphis/Shelby County: Business license through the city
• Knoxville/Knox County: Business tax registration
• Chattanooga: Business license required

Industry-Specific (State Level)

Regulated through Tennessee Department of Commerce & Insurance:

• Healthcare professionals
• Real estate agents/brokers
• Contractors
• Insurance agents
• Architects/Engineers
• Cosmetologists

FAQ

Does every Tennessee LLC need a business license?

Most do. Tennessee's state business license (issued by county clerk) is required for most commercial activity. Exceptions are limited.

What about the Nashville business tax?

Nashville/Davidson County assesses a business tax based on gross receipts. This is separate from (and in addition to) the state business license, the F&E tax, and the Annual Report.