Nail Salon Permits & Licenses in Knoxville, TN

Required for all LLCs; online filing via SOS portal recommended. Annual Report separate requirement.

A $10,000 surety bond is required for all salon owners (including LLCs) applying for a salon license in Tennessee. This is not required for individual cosmetologists or nail technicians operating under a salon. The bond ensures compliance with Tennessee Board of Cosmetology rules and may cover consumer claims. Source: TN Comp. R. & Regs. § 0450-01-.20(3).

Required under Tennessee's Financial Responsibility Law (TCA § 55-12-101) for any vehicle used in business operations. Personal auto policies do not cover business use. Applies if the LLC owns a vehicle or employees use vehicles for deliveries, mobile services, or transport of supplies.

Not mandated by Tennessee law, but highly recommended if the nail salon sells retail products. Federal product liability laws (under CPSA and common law) hold sellers liable for defective or harmful products. While not a state-mandated insurance, it is a critical risk management tool for businesses selling tangible goods.

Only required if the nail salon holds a liquor license. Tennessee requires businesses serving alcohol to carry liquor liability insurance (typically $250,000–$1,000,000) as a condition of licensure. Most nail salons do not serve alcohol and are exempt from this requirement.

Under Tennessee Workers' Compensation Law (TCA § 50-6-102), all employers with five or more employees must carry workers' comp insurance. However, for industries classified as 'hazardous'—including personal services like cosmetology—coverage is mandatory with just one employee. Nail salons are considered hazardous under TN Comp. R. & Regs. § 0800-02-02-.01, thus triggering the requirement at one employee.

Required for all LLCs, especially if they have employees or operate as a partnership or corporation for tax purposes. Even single-member LLCs without employees may need an EIN if they elect corporate taxation or open a business bank account.

Single-member LLCs are disregarded entities by default and report income on Schedule C of Form 1040. Multi-member LLCs are treated as partnerships and must file Form 1065. LLCs taxed as corporations must file Form 1120. All owners must pay self-employment tax on net earnings via Schedule SE.

Nail salons must comply with OSHA’s Hazard Communication Standard (29 CFR 1910.1200) due to use of chemicals (e.g., acetone, acrylics, formaldehyde). Employers must provide Safety Data Sheets (SDS), train workers on chemical hazards, and label containers. Also subject to General Duty Clause requiring safe workplace free from recognized hazards.

Nail salons are considered "public accommodations" under Title III of the ADA. Must ensure physical access (entrances, restrooms, pathways), communication access (for customers with disabilities), and service policies that do not discriminate. Modifications must be "readily achievable" for existing facilities.

While most nail salons are not direct targets of EPA enforcement, they may use products containing regulated substances. The EPA restricts use of methylene chloride in cosmetics (effective 2020 under TSCA). Formaldehyde is classified as a carcinogen; products releasing formaldehyde above certain levels may be restricted. Salon owners should verify compliance with EPA’s Safer Choice program or TSCA rules.

Nail salons must avoid deceptive advertising (e.g., false claims about services, pricing, or "organic" or "non-toxic" labeling). Must disclose material connections (e.g., influencer promotions). Applies to websites, social media, and in-store signage. FTC enforces against unfair or misleading practices under Section 5 of the FTC Act.

All LLCs must file regardless of business type; fee based on number of members as of Jan 1.

Required if using DBA; valid for 4 years; county-level registration no longer required since 2012.

Nail salons classified as "cosmetology establishments" under TCA 62-4-102; must meet sanitation/inspection standards.

Documentation sometimes refers to "shop registration"; same requirement as establishment license for nail salons.

Each nail technician must hold individual cosmetology license; 1,000 hours training or 500 hours apprenticeship required.

Nail salons must collect and remit sales tax on taxable products and certain services if deemed taxable. In Tennessee, most personal services are not taxable, but the sale of tangible personal property (e.g., nail polish, acrylics) is subject to sales tax. If only providing non-taxable services, registration may not be required unless selling taxable items.

Required for all employers in Tennessee who pay wages to employees. Employers must withhold state income tax from employee wages and remit it to the state.

Employers with at least one employee must register for unemployment insurance tax. New employers pay a standard rate of 2.7% on the first $7,000 of each employee's annual wages (as of 2024).

All LLCs doing business in Tennessee are subject to the franchise and excise tax unless exempt. The excise tax is based on net earnings (0.25% rate), and the franchise tax is based on the greater of net worth or real and tangible property in Tennessee (0.25% rate, minimum $100). Due annually by the 15th day of the fourth month after the end of the taxable year (e.g., April 15 for calendar-year filers).

Most cities and counties in Tennessee require a local business tax license (also called a privilege license). Requirements and fees vary by location. For example, Nashville, Memphis, and Knoxville each have their own tax schedules based on business type and gross receipts. Nail salons typically fall under 'Personal Services' classification.

All nail salons must be licensed. Owners or operators must hold a valid cosmetology operator license or work under a licensed manager. Mobile salons require separate registration. Local health departments may inspect for compliance with sanitation and safety rules.

All businesses operating in unincorporated areas or specific counties require a county business license. Contact county assessor for exact fee schedule (e.g., Davidson County: https://www.nashville.gov/departments/county-clerk/business-tax)

All U.S. employers, including nail salons, must complete Form I-9 to verify identity and employment authorization. Employers must retain forms for 3 years after hire date or 1 year after employment ends, whichever is later. Subject to ICE audits.

Applies to nail salon employees (e.g., nail technicians). Requires payment of federal minimum wage ($7.25/hour), overtime (1.5x regular rate for hours over 40/week), proper tip credit compliance (if applicable), and accurate recordkeeping. Misclassification of employees as independent contractors is a common violation in this industry.

Requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave per year for qualifying medical/family reasons. Nail salons meeting the size threshold must post notice and comply with documentation and leave management procedures.

Nail salons use cosmetics (nail polishes, removers, lotions) regulated by FDA under the Federal Food, Drug, and Cosmetic Act. Products must be safe, properly labeled, and free from prohibited ingredients (e.g., chloroform, mercury). Salon-applied products are not required to have pre-market approval, but manufacturers and distributors must comply. Salon owners must avoid using banned or misbranded products.

While manufacturers and distributors are primary reporters, FDA encourages salon professionals to report serious adverse events via the MedWatch program. Not mandatory for salons, but recommended for public health and liability protection.

Nail services (manicures, pedicures, nail enhancements) are taxable as "preparation of the body" under TN law. Must collect 7% state sales tax plus any local taxes.

Required in most Tennessee municipalities. Based on gross receipts. Must be renewed yearly.

Required for all businesses in incorporated cities. Nail salons classified under retail/services. Fees based on gross receipts; see city-specific fee schedule. Example for Memphis: https://www.memphistn.gov/government/city-clerk/business-licenses/

Nail salons typically allowed in commercial zones. Obtain zoning verification/use permit from city/county planning. Specific codes: Nashville Metro Code Sec. 17.08.030.

Specific to nail salons (manicuring shops). Requires initial inspection for sanitation, equipment, floor plan approval per TCA § 62-4-101 et seq. Local health depts enforce public health standards.

Required for interior build-out (e.g., sinks, ventilation for nail salon). Comply with International Building Code adopted locally.

Governed by local zoning/sign ordinances (e.g., Memphis Code Sec. 16-77; max size 1.5 sq ft per linear ft of building frontage).

Ensures fire code compliance (NFPA 1, IFC adopted locally). Requires extinguishers, exits, no flammable storage issues.

Required in most TN cities to register alarms and reduce false alarms.

Mandatory for all employers with 1 or more employees in Tennessee, including part-time and full-time workers. Sole proprietors without employees are exempt but may elect coverage. Nail salons classified under NAICS 621112 (Personal Care Services) fall under risk code 8806 with moderate premium rates. Coverage must be obtained from a licensed insurer or through the state fund (if eligible).

Not statutorily required by Tennessee for all businesses, but strongly recommended and often required by landlords, municipalities, or franchisors. Covers third-party bodily injury, property damage, and advertising injury. While not a state mandate, many local health departments or shopping center leases may require proof of general liability for occupancy permits.

Not legally required by Tennessee state law for nail salons. However, it is strongly recommended to cover claims of negligence, infections, or allergic reactions due to services. The Tennessee Board of Cosmetology does not mandate E&O insurance, but it is considered a best practice for risk management in personal care services.

Required by law for all Tennessee employers. Nail salon work is considered low-risk but still subject to coverage.

Applies to all LLCs registered in Tennessee. Must be filed every year regardless of activity. Example: If formed in February, due May 1. Source updated as of 2023.

Nail salons with gross receipts exceeding $10,000 in a county must register and renew annually. Counties may have additional requirements.

All nail technicians must hold a valid license issued by the Board. Renewal requires completion of continuing education (see separate entry).

Includes at least 1 hour of infection control training. Courses must be approved by the Board.

Inspections ensure compliance with fire safety codes, including exit signage, fire extinguishers, and flammable material storage. Local fire departments maintain inspection schedules.

Inspections focus on sanitation, disinfection protocols, and equipment maintenance. Some counties require registration of footbaths. Check with local health department.

FEIN itself does not expire, but businesses must use it for quarterly and annual tax filings. Not a renewal, but ongoing compliance obligation.

All nail salons collecting sales tax must maintain active registration. No separate fee, but must file returns and renew registration status annually.

Required posters include: Federal Minimum Wage, OSHA Safety, Tennessee Workers’ Compensation, FMLA, and EEO. Must be visible in employee break rooms or common areas.

Nail salons must record work-related injuries and illnesses. Exempt if under 10 employees or classified as low-risk (but still encouraged).

All Tennessee LLCs are subject to Franchise and Excise Tax unless exempt. Even inactive LLCs must file a return.

Filed with the Franchise and Excise Tax return. Reports business structure, ownership, and financial data.

Reports federal income tax withheld, Social Security, and Medicare taxes.

Even if no tax is owed, Form 940 must be filed if threshold was met.

Most employers in Tennessee must file WH-3. Filing frequency determined by annual withholding volume.

Required for independent contractors, not employees. Applies to nail technicians paid as 1099 workers.

New employers pay 2.7%. Must register with Tennessee DOL and receive employer account number.

Most cities and counties in Tennessee require a local business license. Fees often based on gross receipts. Check with city/county clerk.