Retail Store Permits & Licenses in Memphis, TN

Only required if the retailer provides professional advice or consulting services; otherwise optional.

Certain specialized licenses (e.g., contractor, liquor) may require a bond, but standard retail stores do not.

Minimum liability limits required by Tennessee law: $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage (Tenn. Code § 55‑6‑101).

Often required by manufacturers or distributors as a contractual condition; advisable for any retailer selling physical goods.

ABC requires $1 million per occurrence for general liability and $1 million for liquor‑related liability.

Single-member LLCs without employees may use the owner's Social Security Number, but obtaining an EIN is recommended for separation of business and personal finances.

Tennessee LLCs are pass-through entities by default. Profits are reported on owners’ personal tax returns via Form 1040 and Schedule C, E, or F. Multi-member LLCs file Form 1065.

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

Applies to all LLCs; fee based on number of members (capped at $3,000).

Mandatory for all retail stores selling tangible goods; permits collection/remittance of 7% state sales tax (+ local).

File in each county where business operates; renewal every 4 years for $20.

State sets classifications; local governments (counties/cities) issue and collect. Retail classification applies.

All retail stores in Tennessee must register for a sales tax permit if selling taxable goods. Registration is done via the Tennessee Taxpayer Access Point (TNTAP).

LLCs doing business in Tennessee are subject to the franchise and excise tax regardless of income. This is an annual obligation. Filing is required even if no tax is due.

Required for all employers in Tennessee. Employers must withhold state income tax from employee wages. Registration via TNTAP.

All employers with employees in Tennessee must register for unemployment insurance tax. New employers pay a standard rate for the first few years.

Most cities and some counties in Tennessee impose a local business tax (also called a privilege license). Examples include Nashville, Memphis, and Knoxville. Fees and requirements vary. Registration is typically with the city or county trustee or finance department.

Retail stores selling food are subject to a higher state sales tax rate of 9.75% (as of July 1, 2023). This is not a separate registration but impacts tax calculation. Local rates may add to this.

Frequency determined by the Department based on average monthly tax collected. High-volume sellers file monthly, others quarterly or annually. Filed electronically via TNTAP.

All Tennessee LLCs engaged in business must file Form FAE 187 annually, even if no tax is due. Due date is the first Monday in April.

Employers must file Form WH-301 monthly or quarterly depending on withholding volume. Due dates vary by filing frequency.

Employers must file Form UI-5 each quarter, reporting wages and paying unemployment tax. Failure to file results in penalties even if no tax is due.

Retail stores must maintain a safe workplace, post OSHA poster (Form 2203), report work-related fatalities within 8 hours and hospitalizations within 24 hours, and keep injury logs (Form 300) if over 10 employees or in certain industries.

Requires physical accessibility (ramps, door widths, counters), accessible restrooms (if provided), and policies allowing service animals. Applies regardless of number of employees.

Retail stores that handle electronics, automotive supplies, or certain cleaning products may be classified as Small Quantity Generators (SQGs) and must comply with storage, labeling, and disposal rules under RCRA.

Retailers must ensure truth in advertising, avoid deceptive pricing, honor refund policies, and comply with the FTC’s Mail, Internet, or Telephone Order Rule if selling remotely. Also includes data privacy obligations under the FTC Act.

Requires payment of federal minimum wage ($7.25/hour), overtime (1.5x regular rate for hours over 40/week), proper recordkeeping, and youth employment standards. Most retail stores meet interstate commerce threshold via credit card transactions or inventory from out-of-state.

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. Retailers with fewer than 50 employees are exempt.

All employers must complete Form I-9 to verify identity and work authorization for each employee. E-Verify is voluntary unless required by state law or federal contract.

Retail stores that process customer financial data must implement a written information security plan, designate a coordinator, and conduct risk assessments under the updated Safeguards Rule (effective June 2023).

General retail stores (e.g., clothing, books, general merchandise) do not require a federal license. However, selling certain goods triggers federal licensing (see below).

Retail food establishments (e.g., grocery stores, bakeries, supplement shops) must register with FDA every 2 years. Registration is free and done electronically via FDA’s FURLS system.

Federal permit required in addition to Tennessee state alcohol license. Form TTB F 5630.54 must be submitted.

Retailers must register with TTB and pay federal excise taxes. Tennessee imposes additional state excise taxes.

Most local business taxes must be renewed annually. Late renewals may result in penalties or suspension of operating rights.

All 95 Tennessee counties may require a business license; fee schedules set by county legislative body. Retail stores typically need this. Specific county clerk offices handle issuance.

Cities set their own requirements via ordinance. Retail classified under Schedule 32. Contact city clerk for specific ordinance.

Required by county/city zoning ordinance to confirm location complies with zoning district. Specific codes vary (e.g., Unified Development Code in many counties).

Issued by local building department per county/city building code (often International Building Code). Not required for cosmetic changes.

Governed by local sign ordinance (size, lighting, placement restrictions). Check city engineering or planning department.

Local fire marshal inspects for NFPA compliance (egress, extinguishers). Annual renewal in some jurisdictions.

Confirms building meets codes. Issued after fire/building inspections.

Required for food service via county health dept. General retail without food exempt.

Many cities require registration to reduce false alarms.

Required if site plan shows insufficient parking per zoning code.

Flood development permit if in FEMA SFHA; historic review in districts like Nashville Historical Commission.

Sole proprietors with no employees are exempt. Owners who are also employees may elect coverage but are not automatically required.

Not legally required in Tennessee, but virtually always required by landlords, lenders, or vendors.