How to Get a Business License in Tennessee (2026)

Q: Where do I get a business license in Tennessee?

You get the business license from the county clerk, and from the city clerk too if your city levies business tax, in each county and city where the business is located. Standard-license holders also register with the Department of Revenue for business tax.

Q: When is the Tennessee business tax return due?

The business tax return is due on the 15th day of the fourth month after the end of the fiscal year, which is April 15 for a calendar-year business. It is filed with the Department of Revenue through TNTAP.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Tennessee has no single statewide business license, but a general business license is required locally based on gross receipts. A business with over $3,000 in gross receipts needs a $15 minimal activity license from the county or city clerk; one with $100,000 or more needs a $15 standard business license and must register and file business tax with the Department of Revenue.

Quick Answer

Statewide license?: No - licensing is local, by gross receipts
Minimal activity license: Gross receipts over $3,000 to under $100,000 - $15
Standard business license: Gross receipts $100,000 or more - $15 + business tax
Issued by: County clerk (and city clerk if the city levies the tax)
Business tax return: 15th day of 4th month after fiscal year (April 15)
Agency: County/city clerk + Tennessee Department of Revenue

Tennessee Has No Single Statewide License

Tennessee does not issue one general statewide business license. Instead, the state's business tax law requires most businesses to obtain a local business license through the county and/or city clerk, with the license type set by the business's gross receipts. This is separate from forming the LLC itself with the Secretary of State - see how to form an LLC in Tennessee - and separate from franchise and excise tax. It is also separate from any specialty license a regulated profession or industry requires. For the concept across states, see the business license overview.

The Two License Types and Their Thresholds

Tennessee's general business license comes in two tiers, both keyed to gross receipts. The minimal activity license applies to a business with more than $3,000 but under $100,000 in annual gross receipts; it costs $15, and the holder is not required to register for or file the state business tax return. The standard business license applies at $100,000 or more in gross receipts; it also costs $15 to obtain from the clerk, but the holder must register with the Department of Revenue and file the business tax return each year. A business with $3,000 or less in gross receipts generally needs neither license under the business tax.

Who Issues the License

The county clerk issues the Tennessee business license, and the city clerk issues one too if the business is located in a city that levies the business tax. A business must obtain a license in each county and city where it has a location, so a company operating in both an incorporated city and the surrounding county may hold both a city and a county license. The clerk collects the $15 registration fee for each new business location. The Department of Revenue administers the underlying business tax that a standard-license holder must file, using the same EIN the business uses federally.

How to Get a Tennessee Business License, Step by Step

Getting a Tennessee business license follows a short sequence once the LLC exists:

Confirm your expected annual gross receipts to determine whether you need a minimal activity or standard license.
Identify each county and city where the business has a location.
Apply for the business license with the county clerk, and the city clerk where applicable, and pay the $15 fee per location.
If you need a standard license, register for business tax with the Department of Revenue through the TNTAP portal.
Obtain any additional profession- or industry-specific permits your activity requires.

Keep your license current and renew it annually so the business stays in good standing locally. The $15 license fee is charged per business location, so a company with storefronts in two counties registers and pays in each. If you operate inside a city that levies the business tax, expect to hold both a county and a city license for that location. Because the license and the underlying business tax are tied to where you physically operate, adding a new location generally means a new registration with that county or city clerk, not just an update to your existing one.

Tennessee Business License Reference (2026)

The table below summarizes the Tennessee general business license tiers, each verified against the Department of Revenue's business tax guidance. Amounts are effective for 2026 and are set by statute, not by any filing service.

License	Gross receipts	Fee	Business tax return?
No license required	$3,000 or less	-	No
Minimal activity license	Over $3,000 to under $100,000	$15	No
Standard business license	$100,000 or more	$15	Yes - to Department of Revenue

Business Tax for Standard License Holders

Business tax is the Tennessee tax that accompanies a standard business license and is filed with the Department of Revenue. A standard-license holder registers for business tax and files a return each year reporting gross receipts, with the rate set by the business's classification (the state groups businesses into classifications with different rates). The business tax return is due on the 15th day of the fourth month after the fiscal year end - April 15 for a calendar-year business - and is filed electronically through TNTAP. This business tax is in addition to the LLC's franchise and excise tax; see Tennessee annual report and taxes for how the filings fit together.

Understanding the Gross Receipts Thresholds

The two gross receipts thresholds - $3,000 and $100,000 - are the hinge of Tennessee business licensing, so it helps to see how they interact. A business under $3,000 in annual gross receipts generally owes no general business license under the business tax. Cross $3,000 and you move into the minimal activity tier, needing a $15 license from the clerk but no business tax return. Reach $100,000 and you move into the standard tier, which keeps the $15 license but adds a duty to register for and file the state business tax with the Department of Revenue. Because the thresholds are measured on gross receipts - total revenue, not profit - a low-margin business can hit the standard tier well before it is highly profitable. Estimate your gross receipts conservatively when you first register, and revisit your tier each year as the business grows. If you later cross into the standard tier, register for business tax promptly to stay compliant.

Licensing Is Separate From Forming the LLC

A common point of confusion is that a Tennessee business license is not the same thing as forming your LLC. Forming the LLC is a filing with the Secretary of State - Articles of Organization, Form SS-4270 - that creates the legal entity. A business license is a local registration with the county and/or city clerk that lets that entity legally operate and connects it to the business tax. You generally form the LLC first, then obtain the license once you know where the business will operate and roughly what it will earn. The two also renew on different tracks: the LLC files an annual report with the Secretary of State, while the license renews with the clerk and, for standard-license holders, the business tax return goes to the Department of Revenue. See how to form an LLC in Tennessee for the entity side and Tennessee annual report and taxes for the ongoing filings.

Other Permits and Local Rules

Beyond the general business license, some Tennessee businesses need additional permits. Regulated professions - for example, contractors, cosmetologists, and health-care providers - need state professional licenses from the relevant board, and businesses that sell taxable goods must register for sales and use tax with the Department of Revenue. Cities and counties can also impose zoning, signage, and health permits for specific activities. Because these vary by location and industry, check with your county and city before opening. Forming the entity first makes these steps cleaner - start with what an LLC is and the formation overview.

Penalties for Operating Without a License

Operating without a required Tennessee business license exposes the business to enforcement. A business that should hold a license but does not can face penalties and back business tax assessed by the Department of Revenue, and the county or city can require it to register and pay before continuing. Because the license itself costs only $15, the cost of compliance is far lower than the cost of an assessment. Keeping the license current and filing the business tax return on time - for standard-license holders - keeps the business in good standing. If you close the business, cancel the license along with your other accounts; see how to dissolve an LLC in Tennessee.

Frequently Asked Questions

Does Tennessee require a business license?

Tennessee has no single statewide license, but a general business license is required locally based on gross receipts. A business with more than $3,000 in gross receipts must obtain a license from the county and/or city clerk.

How much is a Tennessee business license?

Both the minimal activity license and the standard business license cost $15 to obtain from the clerk, and each renews for $15. Regulated professions may charge separate fees.

What is the difference between a minimal activity and standard license?

A minimal activity license covers gross receipts over $3,000 but under $100,000 and needs no business tax return. A standard license applies at $100,000 or more and requires filing business tax with the Department of Revenue.

Where do I get a business license in Tennessee?

From the county clerk, and the city clerk too if your city levies business tax, in each county and city where the business is located. Standard-license holders also register with the Department of Revenue.

When is the Tennessee business tax return due?

On the 15th day of the fourth month after the fiscal year end - April 15 for a calendar-year business. It is filed with the Department of Revenue through TNTAP.

Sources

Tennessee Department of Revenue - BUS-13, Business Licenses Overview ($3,000 / $100,000 thresholds; $15 license).
Tennessee Department of Revenue - Business Tax.
Tennessee Department of Revenue - Business Tax Registration and Licensing.
Tennessee Department of Revenue - Franchise & Excise Tax guidance.
Tennessee Department of Revenue - Franchise & Excise Tax (separate LLC tax).
Tennessee Secretary of State - Division of Business Services (entity formation).
Tennessee Code - Title 67, Chapter 4, Part 7, Business Tax Act.
IRS - Get an Employer Identification Number (free EIN).
IRS - Limited Liability Company (LLC) (federal classification).
Tennessee Department of Revenue - F&E-5, Due Date for Form FAE 170 (business tax return timing parallel).
Legal Information Institute - 26 CFR § 301.7701-3, Entity classification election.
U.S. Small Business Administration - Apply for licenses and permits.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Tennessee Department of Revenue and your county and city clerk before acting.