How Much Does It Cost to Start a Business in Tennessee?
Last updated: March 2026
Tennessee Business Overview
LLC Filing Fee
$300
Sales Tax Rate
7.0%
Minimum Wage
$7.25/hr
Cost of Living Index
92.1
Workers Comp
Required
Annual Report Fee
$300
Starting a Business in Tennessee
Tennessee businesses register with the Secretary of State. A standard business license is required through the county clerk for most businesses.
Tennessee has no income tax on wages as of 2023. The Hall Income Tax on investment income was repealed. Combined state and local sales tax can reach 9.75%.
Tennessee's no income tax policy and Nashville's rapid growth make it one of the most attractive states for business relocation. The entertainment economy supports music, food, and hospitality businesses.
For official formation documents, visit the Tennessee Secretary of State.
Startup Costs for 100 Business Types in Tennessee
The table below shows estimated startup costs for every major business type, adjusted for Tennessee’s cost of living index of 92.1. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $6,440 | $18,400 | $42,320 |
| Airbnb / Vacation Rental | Real Estate | $10,120 | $27,600 | $82,800 |
| Ambulance Service | Transportation & Logistics | $73,600 | $184,000 | $460,000 |
| App Development Company | Tech & Online | $9,200 | $27,600 | $73,600 |
| Architecture Firm | Professional Services | $18,400 | $50,600 | $119,600 |
| Auto Detailing Business | Automotive | $4,600 | $27,600 | $92,000 |
| Auto Repair Shop | Automotive | $69,000 | $184,000 | $460,000 |
| Bakery | Food & Beverage | $18,400 | $87,400 | $276,000 |
| Bar & Nightclub | Food & Beverage | $92,000 | $322,000 | $782,000 |
| Barbershop | Beauty & Personal Care | $13,800 | $59,800 | $161,000 |
| Beauty Supply Store | Beauty & Personal Care | $27,600 | $92,000 | $276,000 |
| Bookstore | Retail | $23,000 | $92,000 | $276,000 |
| Brewery / Microbrewery | Food & Beverage | $92,000 | $368,000 | $920,000 |
| Cannabis Dispensary | Specialty & Regulated | $114,540 | $305,440 | $1,145,400 |
| Car Wash | Automotive | $114,540 | $500,480 | $1,429,680 |
| Carpentry & Woodworking Shop | Construction & Trades | $9,660 | $25,760 | $64,400 |
| Catering Business | Food & Beverage | $11,040 | $48,760 | $119,600 |
| Chiropractic Office | Health & Wellness | $36,800 | $110,400 | $276,000 |
| Cleaning Business | Home Services | $1,380 | $10,120 | $34,040 |
| Clothing Boutique | Retail | $27,600 | $92,000 | $276,000 |
| Coffee Shop | Food & Beverage | $23,000 | $110,400 | $322,000 |
| Concrete Business | Construction & Trades | $23,000 | $59,800 | $138,000 |
| Consulting Business | Professional Services | $1,840 | $8,280 | $23,920 |
| Convenience Store | Retail | $46,000 | $257,600 | $690,000 |
| Courier & Delivery Service | Transportation & Logistics | $7,360 | $20,240 | $50,600 |
| Cybersecurity Firm | Tech & Online | $18,400 | $50,600 | $138,000 |
| Dance Studio | Childcare & Education | $18,400 | $73,600 | $230,000 |
| Daycare Center | Childcare & Education | $55,200 | $165,600 | $460,000 |
| Demolition Company | Construction & Trades | $27,600 | $73,600 | $184,000 |
| Dental Practice | Health & Wellness | $230,000 | $460,000 | $920,000 |
| Digital Marketing Agency | Tech & Online | $3,680 | $11,040 | $29,440 |
| E-Commerce Store | Tech & Online | $4,600 | $13,800 | $46,000 |
| Electrical Business | Home Services | $13,800 | $50,600 | $147,200 |
| Esthetics & Skincare Business | Beauty & Personal Care | $7,360 | $36,800 | $110,400 |
| Excavation Company | Construction & Trades | $46,000 | $119,600 | $322,000 |
| Financial Planning Practice | Professional Services | $18,400 | $50,600 | $119,600 |
| Flower Shop | Retail | $18,400 | $69,000 | $184,000 |
| Food Delivery Service | Food & Beverage | $9,200 | $47,840 | $119,600 |
| Food Processing Business | Food & Beverage | $69,000 | $230,000 | $690,000 |
| Food Truck | Food & Beverage | $41,400 | $110,400 | $184,000 |
| Freight Brokerage | Transportation & Logistics | $14,720 | $33,120 | $73,600 |
| Furniture Store | Retail | $46,000 | $184,000 | $552,000 |
| General Contracting Business | Construction & Trades | $18,400 | $50,600 | $119,600 |
| Ghost Kitchen | Food & Beverage | $18,400 | $55,200 | $138,000 |
| Gift Shop | Retail | $18,400 | $64,400 | $184,000 |
| Gym & Fitness Center | Health & Wellness | $46,000 | $230,000 | $920,000 |
| Hair Salon | Beauty & Personal Care | $13,800 | $69,000 | $230,000 |
| Handyman Business | Home Services | $1,840 | $9,200 | $30,360 |
| Home Health Care Agency | Health & Wellness | $36,800 | $119,600 | $276,000 |
| HVAC Business | Home Services | $18,400 | $64,400 | $184,000 |
| Ice Cream Shop | Food & Beverage | $18,400 | $69,000 | $184,000 |
| Insurance Agency | Professional Services | $13,800 | $36,800 | $82,800 |
| IT Services Business | Tech & Online | $13,800 | $36,800 | $92,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $23,000 | $82,800 | $230,000 |
| Landscaping Business | Home Services | $9,200 | $36,800 | $110,400 |
| Laundromat | Real Estate | $92,000 | $230,000 | $552,000 |
| Law Firm | Professional Services | $11,040 | $31,280 | $74,520 |
| Limousine & Car Service | Transportation & Logistics | $36,800 | $82,800 | $202,400 |
| Liquor Store | Retail | $46,000 | $165,600 | $460,000 |
| Marketing Agency | Professional Services | $4,600 | $16,560 | $46,000 |
| Martial Arts Studio | Childcare & Education | $18,400 | $64,400 | $184,000 |
| Meal Prep Business | Food & Beverage | $18,400 | $59,800 | $184,000 |
| Med Spa | Health & Wellness | $92,000 | $322,000 | $920,000 |
| Medical Practice | Health & Wellness | $138,000 | $368,000 | $920,000 |
| Mental Health Practice | Health & Wellness | $13,800 | $46,000 | $138,000 |
| Moving Company | Home Services | $27,600 | $92,000 | $276,000 |
| Music School | Childcare & Education | $9,200 | $46,000 | $138,000 |
| Nail Salon | Beauty & Personal Care | $18,400 | $82,800 | $230,000 |
| Painting Business | Home Services | $4,600 | $23,000 | $73,600 |
| Personal Training Business | Health & Wellness | $4,600 | $23,000 | $92,000 |
| Pest Control Business | Home Services | $9,200 | $36,800 | $110,400 |
| Pet Store | Retail | $27,600 | $92,000 | $276,000 |
| Pharmacy | Health & Wellness | $138,000 | $368,000 | $920,000 |
| Physical Therapy Clinic | Health & Wellness | $55,200 | $165,600 | $414,000 |
| Pizza Shop | Food & Beverage | $46,000 | $161,000 | $368,000 |
| Plumbing Business | Home Services | $13,800 | $46,000 | $138,000 |
| Podcast Production Company | Tech & Online | $1,840 | $5,520 | $16,560 |
| Preschool | Childcare & Education | $46,000 | $138,000 | $368,000 |
| Property Management Company | Real Estate | $9,660 | $22,080 | $50,600 |
| Real Estate Agency | Professional Services | $9,200 | $25,760 | $64,400 |
| Real Estate Investing (Rental) | Real Estate | $23,000 | $69,000 | $230,000 |
| Restaurant | Food & Beverage | $161,000 | $345,000 | $690,000 |
| Roofing Company | Home Services | $13,800 | $55,200 | $165,600 |
| SaaS Company | Tech & Online | $18,400 | $55,200 | $184,000 |
| Spa & Massage Therapy | Health & Wellness | $9,200 | $64,400 | $230,000 |
| Staffing Agency | Professional Services | $18,400 | $50,600 | $138,000 |
| Storage Unit Facility | Real Estate | $184,000 | $552,000 | $1,840,000 |
| Tattoo Shop | Beauty & Personal Care | $18,400 | $54,280 | $184,000 |
| Tax Preparation Business | Professional Services | $3,220 | $9,200 | $24,840 |
| Thrift Store | Retail | $18,400 | $69,000 | $184,000 |
| Tire Shop | Automotive | $46,000 | $138,000 | $368,000 |
| Towing Company | Automotive | $46,000 | $138,000 | $368,000 |
| Trucking Company | Transportation & Logistics | $27,600 | $73,600 | $184,000 |
| Tutoring Business | Childcare & Education | $1,840 | $22,080 | $92,000 |
| Used Car Dealership | Automotive | $46,000 | $184,000 | $552,000 |
| Vape Shop | Retail | $23,000 | $69,000 | $184,000 |
| Web Development Agency | Tech & Online | $3,220 | $11,040 | $30,360 |
| Welding Business | Construction & Trades | $13,800 | $36,800 | $92,000 |
| Winery | Food & Beverage | $138,000 | $701,040 | $2,760,000 |
| Yoga Studio | Health & Wellness | $13,800 | $73,600 | $184,000 |
Most Popular Business Types in Tennessee
Licenses & Permits in Tennessee
General Business License
Tennessee requires most businesses to obtain a Standard Business License or Minimal Activity License through the Tennessee Department of Revenue. A Standard Business License is required for businesses with annual gross receipts over $10,000, while a Minimal Activity License covers businesses with receipts between $3,000 and $10,000. Businesses must also register their entity with the Tennessee Secretary of State. Tennessee has no state income tax on wages, which is a significant business advantage. Individual cities and counties also issue local business licenses.
Industry-Specific Licenses
- Food Service Establishment Permit — Tennessee Department of Health — Division of Environmental HealthCost: $50-$400 • Renewal: Annual
- Contractor License — Tennessee Board for Licensing ContractorsCost: $150-$700 • Renewal: Annual
- Cosmetology Salon License — Tennessee Board of Cosmetology and Barber ExaminersCost: $50-$150 • Renewal: Annual
- Real Estate Broker License — Tennessee Real Estate CommissionCost: $100-$300 • Renewal: Annual
- Child Care Agency License — Tennessee Department of Human Services — Child Care ServicesCost: $50-$200 • Renewal: Annual
- Wine and Beer License — Tennessee Alcoholic Beverage CommissionCost: $200-$3,000 • Renewal: Annual
- Talent Agency License — Tennessee Department of Commerce and InsuranceCost: $200-$800 • Renewal: Annual
- Medical Practice License — Tennessee Board of Medical ExaminersCost: $150-$500 • Renewal: Annual
Home-Based Business Rules
Tennessee municipalities regulate home-based businesses through local zoning ordinances. Nashville-Davidson County allows home occupations in residential zones with restrictions on customer visits, commercial signage, and non-resident employees. Tennessee's many rural communities are generally very accommodating of home-based businesses. Tennessee's cottage food law, with its high $100,000 annual sales cap, is particularly supportive of home-based food businesses.
Tennessee Business Resources
SBA District Office
Tennessee SBA District Office — Nashville
Secretary of State
https://tnbear.tn.govZoning Information
Tennessee municipalities manage zoning. Nashville and Memphis have comprehensive commercial zoning codes.
Health Department Notes
Food service establishments are permitted by the Tennessee Department of Health or local health departments.
Workers Compensation
Required for employers with 5 or more employees (1 or more in the construction industry).