Real Estate Agent Permits & Licenses in Knoxville, TN

Real estate sales and brokerage services are exempt from Tennessee sales tax. However, if the LLC engages in any activity involving taxable tangible personal property or taxable services (e.g., property management with included services), a sales tax permit may be required. See Tenn. Code Ann. § 67-6-201.

Even if the real estate agent operates as a sole proprietor within the LLC, if they hire employees (e.g., administrative staff), this registration is mandatory. Applies to wages paid to residents and nonresidents.

Applies to employers with one or more employees working one day in a week. New employers pay a standard rate of 2.7% on the first $7,000 of each employee's wages annually.

All corporations and LLCs doing business in Tennessee are subject to the Franchise and Excise Tax. Excise tax is based on net earnings (6% flat rate). Franchise tax is based on net worth or real and tangible property in Tennessee, with a $100 minimum. Filing required even if no tax is due. See Tenn. Code Ann. § 67-4-2002.

Tennessee allows cities and counties to impose a local business tax (also called 'business privilege tax'). In Nashville, real estate agents must register and pay based on gross receipts. Other jurisdictions may have similar requirements. Check local government websites for specific obligations.

Although not a 'tax' per se, EIN is required for federal tax administration. All LLCs with employees or multiple members must have an EIN. Single-member LLCs without employees may use the owner’s SSN, but obtaining an EIN is standard practice.

While not a tax, this is a mandatory annual filing for all LLCs in Tennessee. Failure affects good standing. Must be filed even if no business activity occurred.

In Nashville, all businesses must obtain a business license. This is separate from the Business Privilege Tax but often filed concurrently. Other cities (e.g., Memphis, Knoxville) have similar requirements.

All businesses operating in unincorporated county areas require a county business license from the county trustee or assessor; real estate agents classified under specific business tax class

Required in most Tennessee cities (e.g., Nashville, Memphis, Knoxville); contact city clerk or county clerk for specific municipality. Real estate agents typically under professional services classification.

Many counties (e.g., Knox, Shelby, Davidson) restrict home-based businesses; real estate agents may qualify if no client visits, limited signage/traffic. Check local zoning ordinance.

Required for all LLCs; annual report filing also required separately

Applies to all LLCs; must be filed online

Individual license required for agents; prerequisites include 90 hours pre-licensing education, passing state exam (75% score), and affiliation with licensed broker. Must be 18+, U.S. citizen/resident, high school diploma/GED.

LLC operating as real estate brokerage requires firm license; must designate a qualifying broker. Renewal every 2 years with 16 hours continuing education.

Prerequisites: 2 years active affiliate broker experience (or equivalent), 30 hours broker pre-licensing course, passing exam. Required if LLC operates brokerage without external qualifying broker.

File "Application to Register a Business Name"; renewable every 4 years for $20. Not required if using exact LLC name.

Required under Tennessee's Financial Responsibility Law (Tenn. Code Ann. § 55-12-101 et seq.) for any vehicle registered to the business. Covers liability for bodily injury and property damage. Personal auto policies typically exclude business use.

Not applicable to real estate agents in Tennessee, as they do not manufacture or sell tangible goods. No state mandate exists for this type of insurance in this industry.

Must confirm property zoned for professional office use (e.g., OR-1 office residential). Real estate offices common in commercial zones; varies by city/county planning dept.

Required in virtually all municipalities; restrictions on size, lighting, placement. See local zoning/sign ordinance (e.g., Chattanooga Code Sec. 38-512).

Required for any modifications beyond cosmetic; real estate office fit-outs often trigger if walls moved or systems altered.

Fire code compliance inspection required for offices over certain size; real estate agencies typically low hazard but must meet assembly/egress standards.

Common in urban counties (Shelby, Davidson); reduces false alarms.

Mandatory for all employers with five or more employees in Tennessee. Agricultural and domestic workers may be exempt. Sole proprietors and partners are not required to cover themselves unless they elect to do so.

Not legally mandated by Tennessee state law for real estate agents, but strongly recommended and often contractually required by managing brokers or property management agreements. Protects against third-party bodily injury or property damage claims.

Only required if the business hosts events where alcohol is served and may be liable for third-party injuries (e.g., dram shop liability). Not typically applicable to standard real estate activities. No state mandate unless holding a liquor license.

Not explicitly mandated by statute, but required by TREC policy and nearly all brokerage agreements. Covers claims of negligence, misrepresentation, or failure to disclose. Must be carried by all brokers and broker-owners.

Increasingly required by brokerages and recommended by TREC due to rising cyber threats. Covers data breaches, phishing, and privacy violations.

All LLCs, even single‑member, must obtain an EIN unless they elect to use the owner's SSN for tax reporting.

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Applies to any LLC that hires employees, including independent‑contractor misclassification rules.

Real‑estate offices must maintain a safe workplace (e.g., ergonomics, fire safety).

Office space must be accessible (ramps, door widths, restroom access). Online listings must be accessible under the ADA’s evolving interpretation.

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Applies to any LLC with employees; independent contractors are not covered.

Most small real‑estate LLCs will not meet the employee threshold; include for completeness.

All employers, including LLCs, must complete I‑9 for each new hire.

Typical real‑estate offices rarely generate hazardous waste; include only if such materials are used.

The filing is electronic via the SOS website. The due date aligns with the franchise tax filing deadline.

Renewal must be completed online through the TREC portal and requires completion of continuing education.

Broker renewal also requires proof of broker‑in‑charge designation.

16 hours of approved CE required every two years for salespersons.

24 hours of approved CE required every two years for brokers.

Not statutorily mandated by TREC, but effectively required by nearly all brokerages as a condition of affiliation. Strongly recommended to protect against claims of professional negligence, misrepresentation, or failure to disclose.

A $25,000 surety bond is required for all real estate broker licenses issued to business entities (including LLCs) in Tennessee. The bond protects consumers against financial loss due to violations of the Real Estate Broker License Act. Required under Tenn. Code Ann. § 62-13-107 and enforced by TREC.

Must be filed electronically via the Tennessee Taxpayer Access Point (TNTAP).

If annual tax liability is $1,000 or less, estimated payments are not required.

Must be filed electronically or by mail.

Payments made through the Tennessee Unemployment Insurance portal.

Proof of coverage must be kept on file at the principal place of business.

Posters must be in a conspicuous location where employees can read them.

If the LLC has employees, both state and federal posters are required.

Includes contracts, closing statements, escrow records, and correspondence.

Check the specific city or county website for exact fees and due dates.

The report includes information on active licensees, office locations, and transaction volume.

Only needed if the EIN changes (e.g., change of entity type).