Complete guide to permits and licenses required to start a ecommerce in Memphis, TN. Fees, renewal cycles, and agency contacts.
Common in urban areas to reduce false alarms.
Not applicable to purely online eCommerce without physical storefront signage.
Required for all LLCs. Annual Report required separately (see below). Fees as of 2024.
Mandatory for all LLCs to maintain good standing. Online filing required.
Required for eCommerce businesses with nexus (sales >$100k or 200 transactions annually per state law). Monthly/quarterly returns based on revenue.
eCommerce LLCs must register DBA with each county where transacting business if not using legal name. Expires 4 years; renewable.
Applies to LLCs with sufficient nexus and earnings. eCommerce typically apportioned by sales factor.
All e‑commerce sellers with nexus in TN must collect, remit, and file sales tax.
Monthly filing required if tax liability exceeds $1,000 in a calendar month; otherwise quarterly.
LLCs taxed as partnerships are exempt from franchise and excise taxes.
Franchise tax is 0.25 % of net worth or real/tangible property; excise tax is 6.5 % of net earnings.
All employers must also file quarterly UI returns.
Electronic filing is mandatory for most employers.
Tennessee repealed its Hall income tax (effective Jan 1 2021); there is no state wage withholding.
Other Tennessee municipalities have similar business‑tax licenses; fees vary by locality and gross receipts.
Only required if the e‑commerce operation has a physical presence, inventory, or employees in Memphis.
Not applicable to a typical general‑merchandise e‑commerce store.
All counties except Davidson, Hamilton, Knox, Rutherford, Shelby, Sullivan, and Williamson impose a county business license tax. eCommerce businesses with nexus (sales, inventory, or employees) must obtain. Fee schedules published by each county clerk.
Required in most cities (e.g., Nashville/Davidson Code § 5.04.010; Memphis Code § 6-7-3). eCommerce with physical presence or nexus required. Check specific city clerk for fee schedule.
Required in most cities if home-based (e.g., Nashville Metro Code § 17.36.290 limits traffic, signage, employees). No retail sales to public on premises. Confirm with local zoning office.
eCommerce storage/shipping facilities must comply with commercial/industrial zoning. No specific "certificate" but zoning approval required. Contact county/city planning department.
Required for structural changes exceeding maintenance. Adopted International Building Code (IBC) in most jurisdictions.
Required for storage/shipping facilities. eCommerce inventory may trigger if flammable.
Not applicable to standard eCommerce (clothing/electronics). Required only for food-related.
Verifies compliance with building, fire, zoning codes.
Tennessee law requires coverage for any employer with at least one employee, regardless of full‑time or part‑time status. No statutory minimum coverage amount; limits are set by the policy.
State law does not mandate general liability coverage for e‑commerce retailers, but it is strongly recommended to protect against third‑party bodily injury or property damage claims.
Only applicable when the business offers professional or advisory services (e.g., consulting, design). Pure product sales do not trigger a legal requirement.
Tennessee does not impose a statewide surety‑bond requirement on e‑commerce LLCs. Some cities/counties may require a bond for a local business license.
Minimum liability limits mirror Tennessee’s personal auto requirements: $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage.
Provides coverage for claims arising from defective products that cause injury or property damage. While not mandated, many e‑commerce platforms and payment processors encourage or require it.
All holders of a Tennessee liquor license are required to maintain liability insurance meeting the ABC’s minimum coverage levels.
All LLCs that have employees, operate as a partnership, or elect to be taxed as a corporation must obtain an EIN.
Single‑member LLCs file Schedule C with the owner’s personal return; multi‑member LLCs file Form 1065 and issue Schedule K‑1 to members.
Electing corporate tax treatment changes filing requirements and may affect self‑employment tax.
Even eCommerce businesses with a warehouse, fulfillment center, or any employees are subject to OSHA standards.
The FTC enforces ADA compliance for eCommerce sites; guidelines are provided by the DOJ and WCAG 2.1 standards.
Includes requirements for endorsements, native advertising, price disclosures, and privacy notices (e.g., COPPA for children).
Even if not targeting children, if any user under 13 provides data, COPPA applies.
Applies to any eCommerce LLC that employs staff (warehouse, customer service, etc.).
Most small eCommerce LLCs may not meet the employee threshold, but include for completeness.
Applies to all employers, including eCommerce businesses with staff.
Most typical eCommerce product lines do not involve hazardous waste, but include if relevant.
If the eCommerce store only resells already‑certified consumer electronics, the seller is not required to certify again.
Most generic merchandise (clothing, books, etc.) is not FDA‑regulated.
E‑commerce platforms that facilitate firearm sales must hold an FFL.
Separate from EPA requirements; focuses on transportation safety.
Applies to eCommerce sellers receiving payments via PayPal, Stripe, credit cards, etc.
Required regardless of revenue level.
An Employer Identification Number (EIN) is a unique tax ID number assigned by the IRS to businesses operating in the United States. As an eCommerce business, you’ll likely need an EIN to file taxes, open a business bank account, and hire employees.
As an LLC, you generally need to file Federal Income Tax Returns annually with the IRS, though the specific form depends on your business structure. Some businesses may also be required to make estimated tax payments quarterly.
ADA compliance for websites, specifically under Title III, means ensuring your site is accessible to people with disabilities. This includes providing alternative text for images, keyboard navigation, and proper color contrast, and potential costs range from $1000.00 to $50000.00.
Many FTC compliance requirements, such as adhering to Truth-in-Advertising rules, have no direct fee, but non-compliance can lead to significant penalties. Other areas, like online privacy and data security, may have associated costs ranging from $500.00 to $10000.00.
Failure to comply with FTC regulations can result in cease and desist orders, civil penalties, and damage to your business’s reputation. The FTC actively monitors online businesses and takes enforcement action against those that violate consumer protection laws.
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