It's normal to have questions when starting your own business. There are many procedures and decisions to handle, and sometimes doubts arise that you need clarified. Below, we answer some frequently asked questions about business licenses in Tennessee.
Carefully review this publication from Hispanos Emprendedores where you will find necessary information about the business license.
There are a variety of institutions you can turn to for advice to start your business. Even the official bodies themselves have numerous resources to guide you. In Tennessee, the departments of Commerce and Revenue are key sources of information.
In addition, you have to go to the authorities of your county or municipality to check the local requirements.
This time we focus on state information. We will answer some of those questions that surely have arisen during the process of creating your company.
1. Does my business need a license in Tennessee?
As a general rule, every business needs a business license to operate legally. Business licenses must be processed at the local, municipal, and state levels.
There are different types of licenses, including sales tax registration. Without doing this registration your business cannot start working.
Depending on the gross income of your business, you will need either a minimum or a standard business license. However, if the estimated income is less than $ 3,000, you don't need any.
On the other hand, there are professions that are regulated and that need a license to practice in the state. Some examples are accountants, architects, builders, cosmetologists, etc.
2. How do you know what type of business license to apply for?
To know if you should apply for a minimum activity business license or a standard one, you have to estimate how much the gross income will be.
Those companies with income between 3,000 and 9,999 dollars a year apply for the minimum business license. While those that estimate income above 10,000 correspond to the standard.
3. How long does the business license last?
Both Tennessee business licenses are for one year and must be renewed to avoid penalties. However, the process is different in both cases.
In the case of the minimum activity license, the renewal must be requested each year before the Revenue Department and pay the corresponding fee.
If it is a standard license, it will be renewed upon filing the annual tax return.
4. What happens if the license expires?
When a business license expires and the business continues to operate, the owner risks penalties and fines. Therefore, you have to know the expiration date and renew it on time.
The expiration date for business licenses is the 15th day of the fourth month after your fiscal year ends.
5. How do I register the business to obtain business licenses in Tennessee?
To apply for a business license in Tennessee, you must register with the Tennessee Taxpayer Access Point (TNTAP). Through this service, you can not only obtain the license but also pay your taxes annually.
On the other hand, you must remember that to obtain the Tennessee business license, you must first apply for the county license.
6. If I have a business license in another state, should I obtain one in Tennessee?
There are instances where out-of-state licensed and registered companies want to do business in Tennessee. When it comes to opening a new headquarters, then you have to register and process the corresponding licenses in the county where you will operate.
On the other hand, if it is a business with ties to the state, for example that sells to customers in Tennessee, it does not require a business license from the county. You only need to register with the Department of Revenue if your annual income is over $ 10,000.
7. Who is in charge of granting the licenses?
Licenses and permits must be processed through the Tennessee Department of Commerce and Insurance and the Tennessee Department of Revenue. In the latter, the registration is made to pay the commercial tax.
While the Department of Commerce and Insurance supervises and licenses companies and professions in regulated industries.
For more information regarding the procedures you must complete, visit the websites of each department.
8. Are there any exceptions for business licenses?
Yes, the Department of Revenue establishes certain exemptions to business tax. Some entities that are included in this group are religious and charitable organizations, manufacturers, among others.
9. Where can I check the licenses of a company?
If you want to verify that a company has the necessary licenses to operate, you can do so through the license verification system.
You can do this using the name of the company in question. Although you may need to put in different variations to find what you are looking for.
If you have any other questions, contact us and leave us your questions about business licenses in Tennessee.
