Starting a business in Tennessee might seem easy, but anyone who has gone through the process knows that it can quickly get complicated. One of the many things you will need to do when starting a business in Tennessee is obtaining the necessary licenses and permits to operate legally. This guide will explain the different types of licenses and permits required to start a business in Tennessee and how to get them.
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Types of Licenses and Permits
Before applying for business licenses and permits in Tennessee, it is essential to understand which specific licenses and permits are required for the type of business you plan to open.
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- **Business License:** Every business in Tennessee must obtain a business license to operate legally.
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- **Professional License:** Professional license requirements vary depending on the occupation. Some professions, such as doctors and attorneys, require a professional license to practice in Tennessee.
- **Special Permits:** Depending on the type of business you plan to open, varying permits might be necessary for safety and legal reasoning. For example, a restaurant will require a health permit, and a liquor license will grant permission to sell alcohol.
Steps to Obtain Business License
Obtaining a business license in Tennessee isn't the most complicated process but requires certain paperwork and fees. The following steps can guide you through the process of obtaining a business license:
Step 1: Choose business and business structure.
Before obtaining a business license, you must identify the essential structure of your business. In Tennessee, businesses can be established as a corporation, partnership, or sole proprietorship. This step is essential to know which license will be applicable to your business.
Step 2: Choose Business Legal Name.
The Legal name of the business needs to be registered with the Tennessee Secretary of State.
Step 3: Federal Employer Identification Number (FEIN).
The Federal Employer Identification Number is instantly obtainable and generally required for starting a business.
Step 4: Register with the State Department.
Once your FEIN is registered, you can register with the State of Tennessee, paying business taxes, receiving permits, and filing the necessary returns.
Step 5: Registrations with other departments.
Registrations with various departments include Environmental agency, Occupational safety and Health division, Department of Revenue and Internal Revenue System tax entity registration.
Step 6: Obtain License at City or County Level.
A final business license can finally be obtained by initiating formal legal requirements in Tennessee, including obtaining a business name certificate, city/county real property zoning compliance/judgment, and Tennessee contractor license.
Obtaining Professional Licenses
Due to Tennessee's laws and regulations regarding some professionals, some businesses require receiving professional permission. Professional permits may vary depending on the profession and can mandate additional examination and training ways.
Obtaining Special Permits
Most businesses other than licenses will sometimes require additional permission to operate legally. These permits might include, but are not limited to the following:
- **State Sales Tax Permit**
- **Alcohol Permit**
- **Health Permit**
- **Building Permit**
You can obtain general permits for specific businesses in Tennessee by contacting the proper governing body permission offices, like health departments for health permits.
Conclusion
Starting a business in Tennessee requires anyone concerned an understanding of the necessary permits and licensing and the correct state declared facts. Obtaining both business permits and professional permits can be time-consuming and expensive, but failure to become licensed can create higher costs that sustained from noncompliance penalties that start amassing without recognized licensing. With the right guidance factors and proper record maintenance helps make running a business legally a tenuous operation to prosper.
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