Food Truck Permits & Licenses in Nashville, TN

Designated Food Truck Zones only

Required for all LLCs; annual report separate requirement below

Applies to all LLCs; fee based on number of members (min $300)

Required if using DBA; valid 4 years

Required for all food trucks as mobile retail food stores; plan review required pre-opening

Prerequisite for Retail Food Store Permit; includes construction/equipment review

Specific to mobile units; requires commissary agreement

Food trucks selling prepared food subject to state/county sales tax (7% state + local)

Food trucks selling prepared food must collect and remit sales tax. Tennessee state sales tax rate is 7%. Local sales taxes may increase total rate. Registration is done via the Tennessee Taxpayer Access Point (TNTAP).

All LLCs in Tennessee are subject to franchise and excise tax regardless of income. The excise tax applies to net earnings (6.5% of net worth, minimum $100). Filings are annual via Form FAE.

Required if the food truck owner hires staff. Employers must withhold state income tax from employee wages and remit monthly or quarterly based on liability. Registration via TNTAP.

Only applies to employers with at least one employee. New employers pay 2.7% on first $7,000 of wages per employee annually. Registration through Tennessee Workforce Online (TWO).

Most Tennessee cities and counties require a local business tax (privilege license) for operating a food truck. Examples: Nashville Metro Business Tax, Memphis Business Tax. Fees and requirements vary. Must be renewed annually. Check with local clerk’s office.

All LLCs must obtain an EIN from the IRS, even with no employees. Used for federal tax reporting, bank accounts, and state tax registrations. Apply online via IRS website.

Required for all mobile food vendors; includes food truck classification

Memphis has additional city privilege license; food trucks classified under retail food

Specific endorsement for mobile food service required

Requires commissary agreement and HACCP plan approval

Requires certified food manager on site

Fire suppression system inspection required

Must comply with UCZO 17.36.250 mobile vending districts

Chapter 16, Article VI regulates mobile food vendors

NFPA 58 propane compliance required

Required if you have 5 or more employees in Tennessee, including part-time and full-time. Agricultural and domestic workers may be exempt under certain conditions. Sole proprietors and partners are not required to cover themselves unless they elect coverage.

While not mandated directly by state law, the Tennessee Department of Health requires proof of liability insurance as a condition of issuing a mobile food unit permit. Minimum coverage typically required: $1 million per occurrence.

Required under Tennessee's Financial Responsibility Law (TCA § 55-12-101 et seq.). Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $15,000 for property damage. Coverage must be in the business name if vehicle is registered to the LLC.

Not universally mandated at the state level, but many cities (e.g., Nashville, Memphis) require a surety bond (often $1,000–$10,000) as part of local licensing. The bond ensures compliance with local health, safety, and tax regulations. State-level business tax registration does not require a bond, but local jurisdictions may impose bonding as a condition of operation.

Not legally required by Tennessee statute, but strongly recommended due to risk of foodborne illness or contamination claims. Covered under general liability policies in most cases. Required indirectly by event organizers, festivals, or private property owners where food is sold.

Required if the food truck holds a liquor license (e.g., mobile retail license). TABC may require proof of liquor liability insurance (typically $250,000–$1 million) as a condition of licensing. General liability policies typically exclude alcohol-related incidents unless endorsed.

Required for all LLCs, especially those with employees or multiple members. Even single-member LLCs should obtain an EIN for liability protection and banking purposes.

As an LLC, income passes through to owners’ personal tax returns (Form 1040 with Schedule C). Owners must pay self-employment tax (Social Security and Medicare) via Schedule SE. Multi-member LLCs file Form 1065; single-member LLCs report on Schedule C.

Food truck operators with employees must display the OSHA Job Safety and Health – It’s the Law poster. Employers must also report work-related fatalities within 8 hours and hospitalizations within 24 hours. Routine inspections are rare for small food businesses unless a complaint is filed.

While food trucks are mobile and not fixed facilities, they are considered "public accommodations" under Title III of the ADA. Must allow service animals, provide equal access to goods/services, and avoid discriminatory practices. Physical modifications (e.g., ramps) are generally not required unless the truck is permanently stationed. Digital accessibility (e.g., website, app ordering) must comply with ADA standards.

Food trucks using propane must follow EPA and DOT rules for storage and transport. Used cooking oil must be disposed of properly to avoid Clean Water Act violations. While most enforcement is state/local, federal EPA can intervene in cases of illegal dumping into storm drains or waterways.

FTC enforces truth-in-advertising rules. All claims (e.g., "organic," "locally sourced," "gluten-free") must be substantiated. Menu labeling for calorie counts is not required for food trucks unless part of a chain with 20+ locations (under FDA rules). Online marketing must comply with CAN-SPAM and COPPA if applicable.

Food truck owners with employees must comply with the Fair Labor Standards Act (FLSA), including minimum wage ($7.25/hour federally), overtime (1.5x regular rate after 40 hours/week), and recordkeeping. Tipped employees may be paid $2.13/hour in direct wages if tips bring total to at least $7.25/hour.

FMLA requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. Most food trucks will not meet the 50-employee threshold, making this requirement inapplicable initially.

All employers must complete Form I-9 for each employee to verify identity and work authorization. E-Verify is not federally required unless contracting with federal agencies or operating in states with mandates (Tennessee does not require E-Verify for private employers).

All food trucks that serve food are considered "food facilities" under the FDA and must register with the FDA. Registration must be renewed every 2 years (during even-numbered years, between October 1 and December 31). Failure to register may result in enforcement actions.

While the FDA Food Code is not federal law, it serves as a model for state and local health departments. Tennessee adopts the FDA Food Code, so food trucks must comply with federal guidelines on food handling, temperature control, hygiene, and cross-contamination. Federal oversight increases if food is sourced or sold across state lines.

FDA requires biennial renewal of food facility registration. Failure to renew results in automatic cancellation, which may affect compliance status and interstate operations.

All food trucks must be licensed and inspected by the TN Dept of Health. Must have a certified food manager on staff. Menu and equipment are reviewed. Subject to unannounced inspections.