Coffee Shop / Cafe Permits & Licenses in Memphis, TN

Common for cafes; separate from regular occupancy.

Required for all LLCs; annual report required separately (see below)

Mandatory for all employers with one or more employees in Tennessee, including part-time workers. Sole proprietors and partners are exempt unless they elect coverage. Corporations must cover officers unless they formally opt out via DWC Form C-44.

Not mandated by Tennessee law, but strongly recommended and often required by landlords, lenders, or municipalities as a condition of occupancy or licensing. Covers third-party bodily injury, property damage, and advertising injury.

Required under Tennessee's Financial Responsibility Law for any vehicle registered to the business. Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $15,000 property damage (25/50/15).

No Tennessee state law mandates product liability insurance specifically, but it is a critical component of risk management for food service businesses. Often bundled with general liability coverage.

Mandatory for businesses holding a liquor license in Tennessee. Coverage typically required as part of a liquor liability or umbrella policy. TABC enforces compliance as a condition of licensing.

A surety bond is required for most liquor licenses in Tennessee. Bond amounts vary by license type (e.g., $1,000 for Beer-Only, up to $10,000 for Full Privilege). Ensures compliance with state alcohol laws.

Not mandated in Tennessee for coffee shops. Typically relevant for consultants or service professionals. Not applicable to standard food service operations unless offering specialty services (e.g., event planning).

Applies to all LLCs; filed online via SOSDirect

Must register in each county where business is conducted; valid until canceled

Required for coffee shops serving food; plan review required pre-opening ($200+)

Online via Tennessee Taxpayer Access Point (TNTAP); monthly/quarterly filing required

Issued by county/municipal government but state-classified; coffee shop typically Class 4

All coffee shops selling prepared food and beverages must collect and remit sales tax. Tennessee state sales tax rate is 7%, plus any applicable local rates. Registration is mandatory for LLCs selling taxable goods/services.

All Tennessee LLCs are subject to franchise and excise tax regardless of business activity. The excise tax is 6.5% of net earnings, and the franchise tax is based on the greater of $100 minimum or the tax rate applied to the entity's real estate or net worth. Due annually; returns filed via Form FAE.

Required if the coffee shop has employees. Employers must withhold Tennessee income tax from employee wages. Registration done via Form REG-1 or through the Tennessee Taxpayer Access Point (TNTAP).

All employers in Tennessee with employees must register for unemployment insurance tax under the Tennessee Unemployment Insurance Act. Registration is completed through the Tennessee Workforce Online (TWOL) system.

Most Tennessee municipalities impose a local business privilege tax based on gross receipts. In Nashville, coffee shops must register and file monthly or quarterly. Other cities (e.g., Memphis, Knoxville) have similar taxes—verify with local government. Registration required with city/county revenue office.

Required for all LLCs, especially those with employees or that file business tax returns. Even single-member LLCs with employees or elected corporate taxation must obtain EIN. Applied for online via IRS Form SS-4.

Coffee shops serving prepared coffee, pastries, or meals are subject to full state and local sales tax (not the reduced grocery rate). This is not a separate tax but the application of standard sales tax to prepared items. Collected as part of regular sales tax filing.

Some municipalities, including Nashville, impose an additional tourism tax on restaurants and cafes in high-traffic tourist areas. Coffee shops located in such zones must register and remit this tax. Verify with local finance department for applicability.

Required for all businesses operating within city limits. Fee based on gross receipts. Similar structure in Memphis (fee $15 base) and Knoxville.

Coffee shops typically "permitted by right" in commercial (C-1/C-2) zones but require verification. Home occupation prohibited for food service. Check local zoning map.

Not mandated by Tennessee statute, but almost universally required by commercial landlords and lenders. Covers damage to building improvements, equipment, inventory, and signage from fire, theft, or water damage.

Required for LLCs with employees, those who file employment, excise, or alcohol tax returns, or those that operate as a corporation. Even single-member LLCs without employees may need an EIN to open a business bank account. Application is free via IRS Form SS-4.

Required for cafe build-outs (e.g., kitchen install). See Knoxville example: https://www.knoxvilletn.gov/residents/permits_building

Regulations limit size, height, illumination. Nashville: https://www.nashville.gov/departments/codes/sign-permits

Mandatory for any food/beverage prep/serving. Plan review required pre-opening. Nashville Metro Public Health: https://www.nashville.gov/departments/health/food-service

Required for commercial cooking (hood suppression systems). Annual renewal for high-risk.

Confirms zoning, building, fire, health compliance. Common in all TN municipalities.

Required to register alarms with dispatch. Varies by city (e.g., Memphis: https://www.memphistn.gov/government/police/Pages/AlarmPermits.aspx).

Ensures adequate parking per zoning code (e.g., 1 space/50sf GFA for restaurants).

Federal permit required from TTB under the Federal Alcohol Administration Act. Must also comply with Tennessee state alcohol laws. Includes recordkeeping, labeling, and reporting. Single retail outlet permit (Form 5630.5t) required. Note: Most coffee shops do not serve alcohol, but if they do, this applies.

All Tennessee LLCs must file an annual report with the Secretary of State. The report includes business address, registered agent, and management structure. Filing is required every year regardless of activity.

Coffee shops must collect and remit sales tax on all taxable sales. The sales tax permit does not expire but must be kept current with address, ownership, or operational changes.

All coffee shops serving food must obtain a food service permit from the local health department. Renewal is annual, and inspections are required. Contact local health department for exact deadline and fee.

Inspections ensure compliance with food safety regulations. Inspection reports must be posted if requested by local ordinance. Frequency depends on risk classification.

Required under Tennessee Fire Prevention Code. Coffee shops with cooking appliances (e.g., espresso machines, ovens) are subject to inspection for exits, fire extinguishers, suppression systems, and storage.

LLCs with employees or electing corporate taxation must maintain and use their EIN for all federal tax reporting. No renewal, but must be kept active and reported accurately.

Employers must withhold state income tax from employee wages. Filing frequency depends on payroll volume. Annual reconciliation required.

Coffee shops must file returns even if no sales occurred (zero filing). Filing frequency is determined by the Department of Revenue based on average monthly tax liability.

Self-employed owners or pass-through entities may need to make quarterly estimated tax payments for income and self-employment tax.

As an LLC, income passes through to owners who report profits/losses on Form 1040 Schedule C. Single-member LLCs pay self-employment tax. Multi-member LLCs file Form 1065 and issue K-1s. Estimated quarterly taxes (Form 1040-ES) due April 15, June 15, September 15, and January 15.

Required for all employers with employees. Includes maintaining a safe workplace, providing safety training (e.g., hazard communication for cleaning chemicals), posting OSHA poster (Form 2203), and recording work-related injuries (OSHA Form 300 if 11+ employees). Coffee shops must address slip hazards, hot liquid burns, and equipment safety.

Applies to all places of public accommodation. Coffee shops must allow service animals, provide accessible entrances, counters, restrooms (if provided), and menus. Communication must be accessible to people with disabilities. New construction or alterations must comply with ADA Standards for Accessible Design.

All domestic food facilities, including coffee shops that brew and serve coffee, prepare pastries, or handle unpackaged food, must register with FDA. Registration must be renewed every 2 years during the renewal period (October 1–December 31 of even-numbered years). Failure to register may result in detention of products.

Prepackaged foods must comply with FDA labeling rules including ingredient list, allergen declaration (e.g., milk, eggs, wheat), net quantity, and business name/address. Bulk items (e.g., pastries in display case) require visible allergen signage. Applies under the Food Safety Modernization Act (FSMA).

Applies to coffee shops with employees. Requires payment of federal minimum wage ($7.25/hour), overtime pay (1.5x regular rate for hours over 40/week), proper recordkeeping (wages, hours, employee info), and youth employment standards. Tip credits allowed under specific conditions.

Employers must register with the Tennessee Department of Labor and file quarterly unemployment tax reports. New employer tax rate is 2.5% on first $7,000 of wages per employee annually.

Employers must display OSHA Form 2203 (Job Safety and Health Protection) in a conspicuous location. Available for free download from OSHA website.

Employers must display a poster summarizing Tennessee labor laws, including minimum wage, workers' compensation, and discrimination protections. Available from the state website.

Tennessee law requires workers' comp for most employers with 5+ employees. Coffee shops with 5 or more employees must carry coverage. Sole proprietors may opt out.

Most Tennessee cities require a local business license or tax registration. Fees are often based on gross receipts. Verify with city clerk or finance department.

Must retain invoices, sales records, exemption certificates, and tax returns for at least 3 years. Records must be available for audit.

Includes payroll records, W-4s, time sheets, and tax filings. IRS recommends keeping records for 4 years from the due date or payment date, whichever is later.

Tennessee imposes a 'business tax' (a form of gross receipts tax) in most counties. Not required if gross receipts are below $10,000 in a county. Registration required if threshold is met.

All U.S. employers must complete Form I-9 to verify identity and work authorization for every employee hired after November 6, 1986. Must retain for 3 years after hire date or 1 year after employment ends, whichever is later. Applies regardless of business size.

Requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave per year for qualifying medical and family reasons. Coffee shop must post notice and maintain health benefits during leave. Applies only if the business meets employee threshold.

Applies to all businesses engaged in commerce. Coffee shops must ensure advertising is truthful and not misleading (e.g., "organic" claims must comply with USDA standards, "free" offers must be genuinely free). Menu labeling for calorie counts applies only to chains with 20+ locations under ACA.

Coffee shops are not typically subject to major EPA permitting unless discharging pollutants. However, must comply with general environmental laws: proper disposal of coffee grounds (not down drains in large quantities), used cooking oil (if frying), and hazardous waste (e.g., batteries, light bulbs). No federal permit required for standard operations.