Hotel / Motel Permits & Licenses in Memphis, TN

Specific to hotels/motels offering transient lodging. Also triggers collection of state hotel occupancy tax (see separate tax registration).

All hotels/motels must register to collect/remit sales tax on room rentals. Local occupancy taxes may also apply.

Applies to all LLCs with nexus in TN. Hotels report under Retail Sales classification.

Required for all LLCs. Annual Report required separately (see below).

Applies to all LLCs. Filed online via sos.tn.gov.

Required if using DBA. Valid for 4 years; renewal $20.

Hotels and motels in Tennessee are required to collect and remit sales tax on room rentals. The state rate is 7%, plus local rates (total typically 9.25%–10.25% depending on jurisdiction). Registration is mandatory via the Tennessee Taxpayer Access Point (TNTAP).

Employers must register to withhold state income tax from employee wages. Tennessee does not have a state income tax on wages, but effective January 1, 2021, Tennessee reinstated a limited withholding tax on certain investment income (e.g., interest, dividends). However, as of 2023, Tennessee does not impose a personal income tax on wages, so this registration primarily applies to non-wage income. Confirm current status via source.

All employers with employees in Tennessee must register for unemployment insurance tax. New employers are assigned a standard rate of 2.7% for the first 3 years.

All LLCs doing business in Tennessee are subject to the franchise and excise tax unless exempt. The excise tax is a flat 6.5% on net earnings. The franchise tax is based on the greater of net worth or real estate value in Tennessee, with a minimum tax of $100. Filed annually using Form FAE-101.

Many Tennessee cities impose a local business privilege tax on gross receipts. For hotels, this may be a percentage of room revenue. Registration is typically with the city or county revenue office. Verify requirements with local jurisdiction.

State transient lodging tax is 4.5% of room rental charges. In addition, local jurisdictions may impose additional lodging taxes (e.g., tourism, convention). Combined state and local rates often exceed 10%. Must be registered via TNTAP.

Many counties and cities in Tennessee impose an additional tourism or convention tax on short-term lodging. These are in addition to state transient lodging tax. Registration is typically handled at the local level or through the state system (TNTAP) if coordinated.

A $1,000 surety bond is required for certain liquor license types (e.g., Restaurant Class D) under Tennessee ABC rules. The bond ensures compliance with alcohol laws and may be used to cover fines or damages from violations.

While not directly mandated by statute as "insurance," the Tennessee Fire Prevention Code (16 T.C.R.R. 4-3-.01) requires compliance with NFPA standards, which lenders, insurers, and local fire marshals interpret as necessitating commercial property insurance. Required to pass fire safety inspections for occupancy.

Required in all Tennessee counties for hotels/motels; fee schedule set by county legislative body per TCA § 5-8-102

Hotels/motels classified under specific NAICS; check specific city clerk. Example for Davidson County/Nashville per Metro Code Sec. 5.04. Nashville fee schedule effective 2023.

Hotels/motels require zoning for "transient lodging" (e.g., Memphis Code Ch. 9, Table 9-3B); must verify property zoning district allows use.

Required for structural changes; hotels subject to IBC/IRC standards adopted locally (e.g., Knoxville Code Ch. 6).

Regulated by local sign ordinances (e.g., Chattanooga Code Sec. 38-509); electronic signs may have additional rules.

Required for all hotels/motels under Tenn. Comp. R. & Regs. 0400-11-01; covers sanitation, bedding, water quality. Inspected by county health dept.

NFPA 101 Life Safety Code; occupancy load for assembly/transient areas (e.g., Shelby County Fire Prevention Code).

Confirms code compliance (e.g., Nashville Codes Admin. Ch. 16.24).

Required for hotels per IFC/NFPA 72 (e.g., Knoxville Fire Code).

Site plan review for traffic/parking (e.g., Memphis Code Ch. 17).

Tennessee law mandates workers' comp for employers with 5 or more employees. However, all employers in the construction industry must carry coverage regardless of number of employees. Hotels classified under NAICS 7211 (Hotels/Motels) are generally subject to the 5-employee threshold. Sole proprietors are not automatically exempt unless they formally elect exclusion.

Not universally mandated by Tennessee state law for all hotels, but often required by municipalities, lenders, or franchisors. Considered essential due to high risk of guest injury. May be indirectly enforced through occupancy permits or fire safety compliance.

Required under Tennessee Code Annotated § 55-10-103 for all motor vehicles operated on public roads. Applies to shuttle vans, maintenance trucks, or any company-owned vehicle. Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $15,000 property damage (25/50/15).

Required for hotels with bars, restaurants, or banquet facilities that hold a liquor license. Tennessee ABC mandates proof of liquor liability coverage (typically $250,000–$1M) as part of licensing. This is enforced during application and renewal.

The Tennessee Department of Revenue may require a surety bond (typically 1.5x expected monthly tax liability) from businesses collecting sales tax if deemed high-risk due to history or structure. Not universally required but conditionally imposed. Hotels may be subject if audited or newly registered under scrutiny.

While not required for all LLCs, hotels/motels typically need an EIN due to employment and potential excise tax obligations (e.g., transient lodging taxes). Even single-member LLCs in hospitality usually require one.

Multi-member LLCs are taxed as partnerships and must file Form 1065; single-member LLCs are disregarded entities and report income on Schedule C. Profits are subject to self-employment tax unless elected as S-corp. Hotels generate taxable income from lodging, services, and potentially food.

Hotels must maintain a safe workplace, provide hazard communication training, post OSHA poster (OSHA Form 3165), and report work-related fatalities within 8 hours and hospitalizations within 24 hours. Housekeeping, maintenance, and kitchen staff are subject to specific safety standards.

Hotels are considered "public accommodations" under ADA Title III. Must comply with ADA Standards for Accessible Design for guest rooms, entrances, restrooms, parking, signage, and common areas. Requires accessible rooms based on total inventory (e.g., minimum number of mobility and communication-accessible rooms). Applies regardless of number of employees or revenue.

Hotel owners must provide EPA-approved lead hazard information pamphlet, disclose known lead-based paint hazards, and include specific lease language. Applies to individual units or rooms rented for 100+ days. Motels and hotels with pre-1978 construction must comply.

Hotels must ensure all advertising (online, brochures, third-party sites) is truthful and not misleading (e.g., false claims about amenities, room availability, or pricing). Applies to "bait-and-switch" tactics, undisclosed resort fees, and fake reviews. FTC enforces Section 5 of the FTC Act against deceptive practices in hospitality.

FLSA requires payment of federal minimum wage ($7.25/hr), overtime for non-exempt employees working over 40 hours/week, proper tip credit compliance (if applicable), and accurate recordkeeping. Hotel housekeepers, front desk staff, and maintenance workers are typically non-exempt.

Requires eligible employees (worked 1,250 hours in past 12 months, employed 12+ months) to receive up to 12 weeks of unpaid, job-protected leave for qualifying reasons. Hotels meeting employee threshold must post notice and administer leave properly.

All employers, including hotel LLCs, must complete Form I-9 to verify identity and work authorization for every employee. Must retain for 3 years after hire or 1 year after employment ends, whichever is later. Subject to ICE audits.

Hotels offering VoIP services must ensure Enhanced 911 (E911) functionality is enabled so emergency calls transmit caller location. Also, must not block emergency numbers or discriminate against VoIP providers. Applies under FCC’s Communications Assistance for Law Enforcement Act (CALEA) and E911 rules.

Under FSMA, any facility that manufactures, processes, packs, or holds food for human consumption must register with FDA. Registration renewed every 2 years. Hotels with food service operations must comply. Does not apply to incidental kitchen use (e.g., coffee makers in rooms).

Federal permit required under the Federal Alcohol Administration Act. Must also comply with Tennessee state alcohol licensing. Form TTB F 5630.5c required. Applies to all alcohol sales, including minibar items sold to guests.

HACCP is required for certain food operations. Most hotel restaurants are exempt unless doing specialized processing. Applies under FDA Food Safety Modernization Act (FSMA) Preventive Controls rule.