How Much Does a Business License Cost in Colorado?

Starting a new business in Tennessee presents a lot of exciting possibilities. But one of the first things you’ll need to figure out is licensing. So, how much does a business license cost in Tennessee? You’ll usually pay anywhere from $15 to a few hundred dollars, depending on your business type, location, and size.

Tennessee requires most businesses to get a license before they begin operating. These licenses make sure your company follows state and local rules, helps track sales tax, and keeps everything running smoothly. Costs aren’t the same for everyone; some small businesses only pay a low flat fee, while larger operations or special industries may need extra permits that add up.

Let’s break down the details so you know what to expect.

Do you need a business license in Tennessee?

Most businesses in the state are legally required to have a Tennessee business license. If your business makes more than $100,000 in annual gross receipts, you’ll need a standard business license from your county clerk. Smaller businesses making between $3,000 and $100,000 per year need what’s called a “minimal activity license.”

In Tennessee, licenses are issued at the county level. But you may also need a city license if you operate within city limits. Don’t assume that one license is all you need! Your county clerk’s office can answer any questions you have about what licenses are required.

How much does a business license cost in Tennessee?

There’s no one-size-fits-all answer here: your business license cost will vary based on your location, industry, and income.

• Minimal activity license: $15 (flat fee, for businesses earning $3,000-$100,000 annually)
• Standard business license: Typically $15-$50, plus any state or local fees
• City or county licenses: From $20 to $100+, depending on where you operate
• Professional or industry-specific licenses: Often $100-$500+ depending on the field (contractors, healthcare, etc.)

State-level permits

Some industries need extra permits from the state. If you sell goods or taxable services, you’ll need a sales tax certificate or “seller’s permit.” This permit is free of charge.

Professional license permits cost $50 to $500 or more, and are required for state-regulated industries. Examples include cosmetologists, barbers, healthcare providers, funeral directors, home improvement contractors, real estate appraisers, and scrap metal dealers. Check the Tennessee Department of Commerce’s website for a list of all industries that require a professional license.

Federal licenses

Most small businesses don’t need federal licenses, but industries that are federally regulated do. Costs for these federal business licenses can vary widely.

Federally regulated industries that require licensing include:

• Agriculture
• Alcoholic beverages
• Aviation
• Firearms, ammunition, and explosives
• Fish and wildlife
• Maritime transportation
• Mining and drilling
• Nuclear energy
• Radio and TV broadcast
• Transportation logistics

Visit the Small Business Administration’s website to see the costs associated with licensing in each of these industries.

Examples of businesses that need licenses in Tennessee

Retail shops. You’ll need a sales tax certificate and a business license.

Restaurants. You’ll need a business license plus food service permits and health department approval.

Contractors. You’ll need a business license and a state contractor’s license if you have more than $25,000 in projects.

Online sellers. You’ll need a business license (either minimal activity or standard, depending on sales amount) and a sales tax certificate. This is true even if you work from home.

Renewing your business license in Tennessee

Most business licenses in Tennessee must be renewed every year. The cost to renew is usually the same as you first paid when you applied.

If you miss your renewal deadline, you could face late fees or even have your license revoked. Once penalties start, they can mount quickly, so it’s best to stay ahead of these deadlines. Your renewal deadlines are tied to your business’s fiscal year, so check with your local clerk to stay on track.

Get help starting your business in Tennessee

The cost of a Tennessee business license depends on your size, industry, and location, but most business owners pay between $15 and $500 per year. Taking the time to get the right licenses not only keeps you compliant with state law but also helps you build trust with customers. If you’re unsure which licenses apply to you, your county clerk’s office is the best place to start. And if you need any help with starting a business, check out our resources and services.

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