How to Get a Business License in Tennessee: Your Ultimate Guide

Starting a business in Tennessee is an exciting venture, but navigating the licensing process can be daunting.

Small businesses, which make up an impressive 96.8% of businesses in the Volunteer State, are on a steady growth trajectory.¹

This guide provides clear instructions to help you secure your business license in Tennessee efficiently.

How to get a business license in Tennessee

Getting a business license in Tennessee involves a few key steps, most of which vary depending on your location and business type. Tennessee doesn’t issue a single, statewide license for all businesses. Instead, licenses are typically issued at the county or city level.²

Here's how to get started:

1. Determine Your Business Structure
   Choose a legal structure (e.g., sole proprietorship, LLC, corporation) and register it with the Tennessee Secretary of State if required.

2. Register for Taxes
   If your business sells goods or services subject to sales tax, register with the Tennessee Department of Revenue to obtain a state tax ID.³

3. Apply for a Local Business License
   Most businesses need a county or city business license, often referred to as a business tax license. You can usually apply online through the local county clerk’s office or via the Tennessee Taxpayer Access Point (TNTAP).³

4. Pay the Appropriate Fees
   The cost typically depends on your anticipated annual gross receipts. Most businesses will pay a $15 fee for a minimal activity license or more if they expect to exceed $10,000 in revenue.⁴

5. Renew Annually
   Business licenses in Tennessee must be renewed every year by filing a business tax return with the Department of Revenue.⁵

What to consider if you have an international business

If you're a non-U.S. resident or managing an international business, you can still apply for a business license in Tennessee, but you’ll need to provide some additional documentation:

Foreign nationals are allowed to own and operate businesses in Tennessee, including forming LLCs or corporations.⁶ You must designate a registered agent with a physical address in Tennessee to receive official documents.⁷

Foreign nationals will need to apply for an EIN through the IRS, even if you don’t have a Social Security Number. You’ll need it to pay taxes, hire employees, and open a business bank account.

If your business is formed in another country, you may need to register it as a foreign entity in Tennessee before applying for a local license.⁷

When applying for licenses or bank accounts, you may be asked to provide a valid passport, proof of address, and translated business formation documents.

Although the process is manageable, consulting with a local attorney or business consultant is a good idea to ensure full compliance with local, state, and federal regulations.

How much does it cost to get a business license in Tennessee?

The cost of a business license in Tennessee depends on your location, business type, and projected revenue. Tennessee classifies licenses into two main categories: Minimal Activity Licenses and Standard Business Licenses.

Here’s what to expect:

• Minimal Activity License: If your business expects to generate $3,000 to $10,000 in annual gross receipts, you’ll need a minimal activity license, typically costing $15 annually. This license is issued by your county clerk or city business tax office.⁹

• Standard Business License: If your business expects to exceed $10,000 in annual revenue, you’ll need a standard business license and must register with the Tennessee Department of Revenue. The fee for this license varies by county or municipality, and is typically based on your business’s gross receipts.

Depending on the city you establish your business in, there may be additional local fees involved. Therefore, it is recommended that you contact local counties and authorities to determine if additional licenses are needed based on your business activity and location.

How long does it take to get a business license in Tennessee?

The time it takes to receive a business license in Tennessee depends on your location, business type, and how you submit your application.

• Online Applications: If you're applying online through the Tennessee Taxpayer Access Point (TNTAP), your registration is usually processed within 3-5 business days. This applies to standard business licenses issued by the Tennessee Department of Revenue.

• In-Person or Mailed Applications: Applications submitted directly through your local city or county office (especially for minimal activity licenses) may take longer than three business days, depending on processing times and whether additional approvals or permits are needed.

• Conditional Licenses: Some municipalities may offer temporary or conditional licenses, allowing you to begin operations while final approvals are completed.

To avoid delays, ensure all required documents, such as your EIN, business formation paperwork, and payment, are ready when you apply.

The Easy Way to Manage Business Finances Wherever You’re Licensed

Once you've secured your Tennessee business license, it's time to set up a financial system that supports your growth. Wise Business offers a flexible, transparent platform with no monthly fees, international payments at the mid-market rate, and the ability to hold and manage over 40+ currencies in a single account. You can also connect to your accounting software, helping you stay organized and scale confidently, no matter where your business takes you.

Open a Wise Business account online

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Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 140+ countries.

Sources:

1. Why Start a Business in Tennessee? | King University Online
2. Registration and Licensing
3. Registration
4. Business Tax Manual December 2024 (February 2025 Update)
5. BUS-20 - Business License Renewal Overview – Tennessee Department of Revenue
6. How do I file a foreign business in Tennessee?
7. All Frequently Asked Questions for Businesses | Tennessee Secretary of State
8. BUS-15 –Minimal Activity Licenses – Tennessee Department of Revenue
9. Licenses Permits Registration
   Sources checked August 2025