How to Get a Business License in Knoxville, Tennessee

In Knoxville, Tennessee, a business license is required to conduct any form of business. The city's Knoxville Business License/Tax Office suggests you contact the department by phone at 865-215-2083 prior to submitting your business license application if you have any questions or concerns. The licensing process is straightforward and can be handled in a short amount of time.

Things You'll Need

• Employer identification number
• Sales tax ID number
• Business license application
• Zoning permits or licenses

Instructions

1. Obtain an employer identification number, or EIN, from the Internal Revenue Service. An EIN is a free, nine-digit number issued by the IRS that allows you to establish business credit, open business checking accounts and hire employees. The EIN is requested on your business license application through Knoxville. Obtain an EIN by visiting the IRS website or contacting the IRS by telephone at 800-829-1040.

2. Obtain a sales tax ID number. If you will sell retail items, then a sales tax ID number is required. You will be required to charge a state sales tax, which you then must pay to the state of Tennessee.

3. Download and print the business license application from Knoxville's website. The business license requires the name of your business, physical address and business owner information. You may not use a P.O. box for the business address.

4. Visit the Department of Development to determine if any permits or zoning are necessary for your business to operate. Certain types of businesses, such as auto dealers, must have special licenses and permits to operate. Even if you are working from home, check with the Department of Development to avoid any citations or other penalties. The Department of Development is located in the City County Building at 400 Main St., Suite 505, Knoxville, Tennessee 37902. The phone number is 865-215-2999

5. Contact the city of Knoxville to determine the costs for obtaining a business license. Usually, the cost of the business license is based on the type of business and the revenue expected during the first year of operation. When paying the fees for your business license using a check or money order, be sure to include your tax ID number on the check.

6. Mail your business license application to P.O. Box 1631, Knoxville, Tennessee 37902. Applications incorrectly completed will be returned unprocessed.

7. Apply for your business license in person to ensure the application is free of errors. The Department of Finance and Accountability occupies Room 450 of the City County Building.

References

• City of Knoxville: Business License/Tax Office
• Business: Starting a Business in Tennessee
• Scoreknox: Start-Up Requirements for All Tennessee Businesses

Resources

• City of Knoxville: Application for Business Tax License
• Tennessee Department of Revenue: Application for Registration
• Internal Revenue Service: Employer ID Numbers (EINs)