Tennessee's Revenue Department is set to enhance support for new businesses with a comprehensive workshop aimed at guiding entrepreneurs through the essential steps of starting a business in the state. During a recent meeting on July 10, 2025, officials outlined critical information regarding business licensing, tax obligations, and professional licensing requirements.

The workshop will provide attendees with detailed instructions on obtaining necessary business licenses from local city and county clerk offices. While most municipalities in Tennessee require a business license, the specifics can vary, and entrepreneurs are encouraged to verify requirements with their local offices. Additionally, the Tennessee Secretary of State will be the point of contact for charter business registrations, which are mandatory for various business structures, including partnerships and LLCs.

Key discussions also highlighted the importance of obtaining a federal employee identification number from the IRS, particularly for businesses with employees. The meeting clarified that unemployment insurance is managed by the Tennessee Department of Labor and Workforce Development, not the Department of Revenue, which is a common misconception among new business owners.

For certain professions, such as contractors and cosmetologists, a professional license is required, which can be obtained through the Tennessee Department of Commerce and Insurance. The meeting also addressed the professional privilege tax applicable to select professions, with further details available on the department's website.

Entrepreneurs planning to serve alcohol on their premises must navigate the regulations set by the Tennessee Alcoholic Beverage Commission, which includes obtaining a liquor license and setting up a related tax account with the Department of Revenue.

The workshop aims to demystify the various tax obligations for businesses, including the state business tax and franchise excise tax, which apply to most business entities. With Tennessee's lack of an income tax and a high sales tax, understanding these financial responsibilities is crucial for new business owners.

As the workshop approaches, the Revenue Department encourages prospective business owners to take advantage of the resources and information that will be made available, ensuring they are well-prepared to launch their ventures successfully.