Given the variety of attractions that the United States has, it is recommended that you know how to open a tourism business in tennessee. This market has remained profitable despite the ravages of the country's economic crisis and covid-19.
What does the tourism industry offer in Tennessee?
The state annually receives more than 119 million visitors who come to enjoy its tourist attractions. These attractions range from its nature reserves to music festivals.
The high season for the sector is summer because there is a better climate for outdoor activities. Whereas, the right time to explore the Great Smoky Mountains, the most visited national park in the country, is fall.
In the winter you can have a better view of the mountains and witness special events for Christmas. It features the Dollywood amusement park owned by singer Dolly Parton. Graceland, Elvis' home, and the National Civil Rights Museum, built on the site of Martin Luther King Jr.'s assassination in Memphis.
As well as the Titanic Museum located in Pigeon Forge, the Obed Wild & Scenic River nature reserve, the birthplace of country music, Nashville. It is also home to the Bonnaroo Festival, the Johnny Cash Museum and the Country Hall of Fame and Museum. The Chickamauga-Chattanooga National Military Park, the largest in the country, the Parthenon, among other emblematic sites.
It should be noted that tourism is the second largest industry in Tennessee. It continues to break visitation records and exceed economic impact every year. These indicators reflect that it is a good market for tour operators, travel agents, guides and wholesalers.
How to Open a Tourism Business in Tennessee
To establish any business, you must register it with the Tennessee Secretary of State and the county where it is located. Most applications can be submitted online at the Online Business Services website.
Decide your business idea or what area you are going to focus on. It can be in the transport service to take tourists to their destination. There is also the option of travel agencies that includes tickets, transportation and accommodation.
The tour operators intervene in the preparation of the trip, they prepare the entire itinerary. Destination management companies are responsible for designing events, activities, tours, etc.
Likewise, the accommodation market can be exploited by offering guest houses, hotels, motels and hostels. Other alternatives are guided tours and tour guides who specialize in giving informative and entertaining tours of major attractions.
Then write a business plan, choose the name and check that it is available. Define what commercial structure you are going to register. The most common are sole proprietorship, partnership, corporation and Limited Liability Company (LLC).
Register it with the Secretary of State through the link: https://tnbear.tn.gov/Ecommerce/RegistrationType.aspx. Apply for an Employer Identification Number (EIN) on the IRS website. Register the business with the Tennessee Department of Revenue and the county.
Likewise, you must file with the TN Department of Labor and Workforce Development for State Unemployment Tax. This in case you have employees. Open a business bank account and have the necessary insurance to cover the business.
Tourist License Prices in Tennessee
Manage the required licenses. Business license is required because businesses are subject to tax. Those who have gross income between $3.000 and $10.000 in the fiscal year must apply for a minimum activity license annually. A $15 fee is payable at the local Secretary of State.
If you want to start a travel agency you can do it by filling out a form and paying a small fee. To be an agent you will only need at least a high school diploma because it only provides customer support and helps you choose vacation packages.
When it is a transport company, you must request the permit in the city where the business will be. Get the proper driver's license and take out vehicle insurance. As for accommodation, you must be up to date with tourist accommodation, sales and gross income taxes.
For the tourist guide undertaking, no license is needed, only legal registration. Tennessee in one of the states that offers the most facilities for the development of the sector. So much so that it grants tourism improvement grant that gives resources to improve the infrastructure in the counties.
On the other hand, it has the Adventure Tourism and Rural Development Law that helps companies establish themselves in rural areas. It promotes outdoor activities and supports the businesses that grow out of them. Among which are trail rides (horse and motorized), rafting and kayaking, rock climbing, mountain biking and etc.
Opening a tourism business in Tennessee is an excellent idea, especially since you will have the support of the state government. In Hispanic Entrepreneurs We can help you form your company. You just have to contact us.
