Restaurant Permits & Licenses in Nashville, TN

Complete guide to permits and licenses required to start a restaurant in Nashville, TN. Fees, renewal cycles, and agency contacts.

Retail Food Store Permit

Tennessee Department of Agriculture - Consumer and Industry Services
Required
Fee: $200.00-$200.00
Renewal: annual
Type: license

Required for all restaurants preparing/serving food; plan review ($300+) required pre-opening

Public Health Permit (Restaurant Inspection)

Tennessee Department of Health - Local County Health Departments
Required
Fee: $100.00-$500.00
Renewal: annual
Type: permit

Issued by county health department after passing inspection; state standards enforced locally

Assumed Name (DBA) Registration

Tennessee Secretary of State - Business Services Division
May Apply
Fee: $20.00-$20.00
Renewal: one time
Type: registration

Must register in each county of operation; expires 15 years or upon cancellation

LLC Registration (Articles of Organization)

Tennessee Secretary of State - Business Services Division
Required
Fee: $300.00-$300.00
Renewal: one time
Type: registration

Required for all LLC formation; annual report separate requirement below

LLC Annual Report

Tennessee Secretary of State - Business Services Division
Required
Fee: $300.00-$3300.00
Renewal: annual
Type: registration

Applies to all LLCs; filed online via SOSDirect

Sales and Use Tax Registration (TN-1900)

Tennessee Department of Revenue - Business Tax Division
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Restaurants collect 7% state sales tax (+local); monthly/quarterly filing based on revenue

Business Tax License

Tennessee Department of Revenue - Local Government Finance
Required
Fee: $15.00-$15.00
Renewal: annual
Type: license

Issued by city/county; state sets classifications/rates; all businesses except certain exemptions

Beer Board Permit (On-Premise Alcohol)

Tennessee Alcoholic Beverage Commission (TABC)
May Apply
Fee: $1000.00-$1000.00
Renewal: annual
Type: license

Local beer board approval required first; separate liquor license ($5,000+) if applicable

Business License

Metropolitan Government of Nashville and Davidson County
Required
Fee: $15.00-$15.00
Renewal: annual
Type: license

Required for all businesses; restaurant-specific NAICS code 7225 used for fee calculation

Food Service Establishment Permit

Metro Public Health Department (Nashville)
May Apply
Fee: $550.00-$550.00
Renewal: annual
Type: permit

Requires pre-opening inspection and certified food manager on staff

Zoning Compliance (Use & Occupancy Permit)

Metropolitan Government of Nashville and Davidson County
May Apply
Fee: $250.00-$250.00
Renewal: one time
Type: permit

Must verify commercial zoning allows 'Restaurant, General' use

Fire Protection Permit and Inspection

Nashville Fire Department
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: permit

Type 1 hood suppression system required for cooking

Building Permit (Tenant Finish-Out)

Metropolitan Government of Nashville and Davidson County
May Apply
Fee: $0.55-$0.55
Renewal: one time
Type: permit

Includes mechanical, plumbing, electrical sub-permits

Sign Permit

Local Codes or Planning Department
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: permit

Max size/distance from street per zoning district

Food Service Permit

Shelby County Health Department
May Apply
Fee: $400.00-$400.00
Renewal: annual
Type: permit

Separate plan review fee $250

City of Memphis Business License

City of Memphis Division of Business License
Required
Fee: $100.00-$1000.00
Renewal: annual
Type: license

Privilege license required for all businesses

Obtain an Employer Identification Number (EIN)

Internal Revenue Service (IRS)
Required
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Required for all LLCs, especially if the business has employees or files employment, excise, or alcohol tax returns. Even single-member LLCs without employees may need an EIN for banking or vendor purposes.

Federal income tax obligations for LLC

Internal Revenue Service (IRS)
Required
Renewal: one time
Type: filing

A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 to elect otherwise. A single-member LLC is treated as a disregarded entity unless it elects corporate taxation. Profits are passed through to owners' personal tax returns unless taxed as a corporation.

OSHA workplace safety compliance

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Restaurants must comply with general industry standards including hazard communication, emergency exits, sanitation, and injury reporting. Employers must display the OSHA Job Safety and Health poster (OSHA Form 2203). Injury and illness records (OSHA Form 300) required for businesses with 11+ employees.

Americans with Disabilities Act (ADA) Title III Compliance

U.S. Department of Justice, Civil Rights Division
May Apply
Renewal: one time
Type: permit

Restaurants are considered public accommodations under ADA Title III. Must ensure physical accessibility (e.g., entrances, restrooms, seating), accessible menus, and service policies for customers with disabilities. New construction or alterations must comply with ADA Standards for Accessible Design.

EPA compliance for grease traps and wastewater discharge

Environmental Protection Agency (EPA)
May Apply
Renewal: one time
Type: permit

Restaurants must comply with the Clean Water Act by properly managing grease, oils, and food waste. Must install and maintain grease traps/interceptors to prevent blockages and contamination. Subject to inspection by EPA or local municipality under NPDES permits.

FTC compliance with advertising and consumer protection laws

Federal Trade Commission (FTC)
Required
Renewal: one time
Type: permit

Restaurants must ensure truth in advertising (e.g., menu descriptions, promotions, health claims). Misrepresenting ingredients, portion sizes, or pricing may violate FTC Act Section 5. Also applies to online reviews and influencer marketing.

Fair Labor Standards Act (FLSA) compliance

U.S. Department of Labor (DOL)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Applies to all restaurants with employees. Requires payment of federal minimum wage ($7.25/hour), overtime pay (1.5x regular rate for hours over 40/week), proper tip credit compliance (if using tip credit), and accurate recordkeeping. Youth employment restrictions apply.

Family and Medical Leave Act (FMLA) Compliance

U.S. Department of Labor (DOL)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Requires eligible employees (12 months, 1,250 hours) to be granted up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Applies only to covered employers meeting employee threshold.

I-9 Employment Eligibility Verification

U.S. Citizenship and Immigration Services (DHS)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

All employers must complete Form I-9 for each employee to verify identity and work authorization. E-Verify is not federally required for restaurants unless state law mandates it.

FDA Food Code compliance

Food and Drug Administration (FDA)
May Apply
Renewal: one time
Type: permit

While the FDA Food Code is not federal law, it is adopted by Tennessee and most states into enforceable regulations. Covers food handling, employee hygiene, temperature control, cross-contamination prevention, and allergen management. Required for all restaurants.

Nutrition Labeling for Standard Menu Items

Food and Drug Administration (FDA)
May Apply
Renewal: one time
Type: permit

Requires display of calorie information on menus and menu boards, a statement about daily caloric intake, and availability of written nutrition information upon request. Applies only to chain restaurants with 20+ locations nationwide.

Alcohol Beverage Tax Registration (if selling alcohol)

Alcohol and Tobacco Tax and Trade Bureau (TTB)
May Apply
Renewal: one time
Type: license

Restaurants selling alcohol must register with TTB and may be required to file federal excise tax returns. While Tennessee handles alcohol licensing at the state level, federal registration is still required under the Alcohol Beverage Tax Act.

Step-by-Step Compliance Guide

  1. First, obtain an Employer Identification Number (EIN) from the Internal Revenue Service, which is required for operating as a business and has no filing fee.
  2. Next, register for Federal Income Tax with the IRS, as this is a fundamental requirement for all businesses operating in the United States, with fees varying.
  3. Ensure compliance with the Federal Trade Commission regarding truth-in-advertising and menu labeling, as the FTC enforces consumer protection laws and fees vary.
  4. File Federal Income and Self-Employment Tax with the IRS, which is a recurring obligation for LLCs, and the associated fees will vary.
  5. Maintain thorough Recordkeeping for Tax Purposes as mandated by the IRS, ensuring accurate documentation for all financial transactions, with fees varying.
  6. Address Americans with Disabilities Act (ADA) Compliance for Public Accommodations, potentially incurring fees between $200.00 and $5000.00 with the Department of Justice.
  7. Comply with Federal Income Tax Filing as an LLC, a requirement of the IRS, with fees varying depending on your specific tax situation.
  8. Complete Federal Self-Employment Tax and Income Tax Filing with the IRS, ensuring all obligations are met, and fees will vary.

Common Mistakes to Avoid

  • Assuming all federal permits are one-time filings, as some, like Federal Income Tax Filing, are annual.
  • Ignoring the potential for significant ADA compliance costs, which can range up to $5000.00.
  • Failing to account for varying IRS fees, as they are dependent on your specific business income and structure.
  • Overlooking the importance of accurate recordkeeping, which is crucial for both tax and employment compliance.
  • Believing FTC compliance is optional, as it protects consumers and avoids potential legal issues.

Frequently Asked Questions

What is an EIN and why do I need one?

An Employer Identification Number (EIN) is a unique tax ID number assigned by the IRS to businesses operating in the United States. You'll need an EIN to open a business bank account, file taxes, and hire employees.

What does ADA compliance entail for a Nashville restaurant?

ADA compliance means ensuring your restaurant is accessible to individuals with disabilities, including ramps, accessible restrooms, and appropriate table heights. The Department of Justice enforces ADA regulations, and non-compliance can lead to penalties.

How often do I need to file Federal Income Tax as an LLC?

Federal Income Tax Filing for an LLC is typically done annually with the IRS, though quarterly estimated tax payments may also be required depending on your income. The specific forms and requirements will depend on how your LLC is structured.

What kind of advertising regulations does the FTC enforce?

The Federal Trade Commission (FTC) regulates advertising to prevent deceptive or misleading practices, including false claims about food ingredients or health benefits. Menu labeling requirements also fall under FTC jurisdiction.

Are there any free resources available to help with federal permit compliance?

The IRS and FTC websites offer numerous resources, guides, and publications to help businesses understand and comply with federal regulations. Additionally, the Small Business Administration (SBA) provides guidance and support.

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