How to Open a Retail Business in Tennessee
After you have researched your local market, written a business plan and secured sufficient financing, opening a retail business in Tennessee is a matter of registering your business and its location with the appropriate state and local authorities. Specifically, you must establish your business with the Tennessee Department of State, register as a tax entity with the Tennessee Department of Revenue, verify that your business location is properly zoned and obtain a business license from city or county government.
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Instructions
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Secure a location for your business. Generally, to operate a retail establishment you must choose a location appropriately zoned for commercial activity. However, as zoning regulations vary across Tennessee, before you sign a lease or a purchase agreement, visit your local zoning office for a consultation. Note that you may be required to obtain official zoning verification before beginning operations. The zoning office will advise you accordingly.
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Choose a legal structure for your business. Common legal business structures include a sole proprietorship, a general partnership, a corporation, a limited liability company and a limited liability partnership. For an introduction to each business structure, visit the U.S. government's official business information website, Business.gov. Because this decision may have significant legal and tax liability implications, seek professional advice from a lawyer and an accountant. Note that if you choose to operate as a sole proprietorship -- the simplest of business structures -- you are not required to register your business name or complete the Department of State registration procedures as described in the next two steps.
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Choose a business name. Visit the Tennessee Department of State website and access the Business Name Availability search tool . Unless you are operating as a sole proprietorship, your business name must be unique to Tennessee. If you find your chosen name has already been registered, choose another. You may download a business name reservation form by clicking the appropriate link below the search tool. However, if you plan to complete the following step immediately, you need not go to the trouble of reserving the name.
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Establish your business structure and business name with the Tennessee Department of State. Visit the department website and access the Corporation Brochures and Filing Guides index page. Download the filing guide that corresponds to your chosen business structure and read it carefully. Navigate to the department's Corporation Forms index page and download the appropriate forms as indicated in your filing guide. Complete and submit the forms along with appropriate fees. After processing, you will receive a verification certificate.
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Obtain a local business license, if required. City and county business licensing requirements vary widely across Tennessee. Visit your local Business Development Department or the City Clerk's office to obtain licensing documents and instructions. Generally, unless you are selling food or other regulated items, retail business licensing is a matter of verifying proper zoning and documenting appropriate safety measures for your location.
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Register your business with federal and state tax authorities. Go to the IRS website to obtain a federal Employer Identification Number (EIN) online. Visit the Tennessee Department of Revenue website and complete the online tax registration form. Doing this will register you for city and county business taxes and the state Sales and Use Tax. A permit and tax certificate will be mailed to you for public display at your business location.
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