Tax Preparer Permits & Licenses in Chattanooga, TN

Required for all LLCs. Online filing available via Tennessee Secretary of State portal.

Applies to all LLCs. Filing maintains good standing.

Required if business uses DBA. Expires after 4 years; renewal $20.

Tax preparers typically do not collect sales tax on services; confirm if selling software/products.

Tennessee has no state income tax, but withholding required for non-residents working in TN.

Tennessee does not require state-specific professional license for tax preparers. IRS PTIN is federal requirement. No state board regulates tax preparers per TN.gov sources.

State oversees classification; counties/cities issue. Tax preparers fall under professional services.

Professional services such as tax preparation are generally exempt, but if the LLC sells software, printed forms, or other taxable goods a sales‑tax permit is required.

All Tennessee businesses (including LLCs) must register for the Business Tax and file quarterly returns (Form BTR‑1).

Even if no tax is due, a zero return must be filed.

Franchise tax is filed annually using Form F‑1120 (or F‑1120‑S for S‑corporations).

Electronic filing via TNTAP is required for most entities.

Most tax‑preparer LLCs will not need this unless they make reportable payments to non‑employees.

Registration is done through the Tennessee Workforce Services portal.

Electronic filing via the Tennessee Workforce Services portal is required.

Other Tennessee cities (e.g., Memphis, Knoxville) have similar local business tax requirements; owners should check their municipality’s revenue department.

Tax preparers often receive payments from clients; they must issue 1099‑NEC to any contractor they pay.

Most office‑based tax‑preparer LLCs are exempt because they are low‑hazard, but if the workforce reaches 10+ employees, the requirement applies.

A tax‑preparer office is a public accommodation and must be accessible to individuals with disabilities (e.g., wheelchair access, accessible website).

Tax preparers must avoid deceptive or misleading statements (e.g., guaranteed refunds) and must disclose any affiliations or credentials.

Even a single‑member LLC that hires staff must complete an I‑9 for each employee.

Office‑based tax preparers are generally covered non‑exempt unless a bona fide executive, administrative, or professional exemption applies.

While not mandatory, participation is required for non‑credentialed preparers who wish to retain e‑file rights after the 2022 “Return Preparer” rule changes.

Standard tax‑preparer offices generally have no EPA hazardous‑waste obligations.

FTC requires that any claim about tax refunds, audit protection, or “guaranteed” outcomes be substantiated and not misleading.

File electronically via the Tennessee Taxpayer Portal; required even if the LLC has no income.

Check the specific city’s schedule for exact fee tiers.

All businesses operating in unincorporated county areas require a county business license (privilege tax). Tax preparers fall under professional services classification. Specific county fee schedules at https://www.tn.gov/content/dam/tn/revenue/tax-information/classification-schedule.pdf

Required for all businesses in incorporated cities. Tax preparers classified under professional services. Must check specific city code (e.g., Nashville Code Sec. 5.04. Nashville requires online application at https://www.nashville.gov/departments/finance/business-tax/how-to-apply)

Many TN municipalities allow home-based professional offices like tax prep with restrictions (no client visits, signage limits). Check local zoning ordinance (e.g., Metro Nashville Unified Development Code Article 17.44)

Confirm property zoned for professional office use (C-2, OP zones typical). Professional services like tax prep usually permitted by right in commercial zones.

Required for permanent signs. Restrictions on size, lighting, placement per local sign ordinance (e.g., Memphis Code Chapter 16)

Office use typically low hazard. Required for Certificate of Occupancy in most cities.

Not required for standard office lease without changes.

Required in major cities to reduce false alarms.

Confirms building code compliance for intended use.

Required for employers with 5 or more employees in Tennessee. However, all employers in the construction industry must carry coverage regardless of number of employees. Agricultural and domestic workers may be exempt. Sole proprietors without employees are not required to carry coverage for themselves but may elect to do so.

Not legally mandated by Tennessee or the IRS for all tax preparers, but strongly recommended. However, if a preparer signs and submits federal tax returns, they are subject to IRS due diligence rules (IRC §6694), and E&O insurance helps mitigate financial risk. Enrolled Agents (federally licensed) are not required to carry E&O by IRS, but must pass exams and adhere to ethical standards.

The IRS previously required a $25,000 bond for non-CPA, non-Enrolled Agent tax preparers under the Registered Tax Return Preparer program, but this program was discontinued in 2013 following court rulings. As of now, no federal bonding requirement exists for general tax preparers. Only Enrolled Agents (licensed by IRS) must post a $25,000 bond under Treasury Department Circular No. 230.

Only applies to individuals who pass the Special Enrollment Exam and become Enrolled Agents recognized by the IRS. Not required for general tax preparers operating as LLCs in Tennessee. The $25,000 bond is managed through the IRS and secured via a surety company.

Not mandated by Tennessee state law for tax preparers specifically. However, landlords or local municipalities may require it for businesses operating in commercial spaces. Strongly recommended to protect against slip-and-fall claims or client property damage.

Required under Tennessee law for any vehicle registered as commercial or used primarily for business. Personal auto policies may not cover business use. Applies if the LLC owns or operates a vehicle for client meetings, deliveries, or other business activities.

Required for all LLCs, including tax‑preparer entities.

Most service‑based LLCs (including tax‑preparers) are subject to the franchise tax if net worth exceeds the exemption threshold.

Coverage must be obtained before the first payroll date.

Registration must be completed before the first payroll.

All Tennessee LLCs must file an annual report with the Secretary of State. This is a mandatory requirement regardless of business activity.

Tax preparers typically do not collect sales tax unless selling tax preparation software or other taxable products. Most tax preparation services are not subject to sales tax in Tennessee.

EIN is issued once and does not expire. However, if business structure changes (e.g., from sole proprietorship to LLC), a new EIN may be needed.

While not legally required for all tax preparers in Tennessee, IRS mandates 15 hours of continuing education annually for RTRPs. Most professional tax preparers pursue this to maintain credibility and representation rights.

Businesses must update registration information (name, address, ownership) within 20 days of change. No annual renewal, but ongoing compliance required.

Employers must file Form WH-30 to report and remit state income tax withheld from employee wages. Frequency depends on liability amount.

LLC members must make quarterly estimated tax payments if they expect to owe $1,000 or more after withholding and credits.

Not required by Tennessee law for tax preparers, as they provide services, not goods. Only relevant if the business sells physical products (e.g., tax software on disk, merchandise). No legal mandate exists; coverage typically bundled in broader liability policies.

Only applies if the business operates a venue that serves alcohol. Not relevant for a standard tax preparation business. Requires a liquor license from the Tennessee Alcoholic Beverage Commission, which mandates liquor liability coverage.

Requires completion of IRS Form 8867 (Paid Preparer Due Diligence Checklist) for each qualifying return. Failure can result in monetary penalties and preparer sanctions.

All LLCs, even single‑member, must have an EIN if they have employees, file employment taxes, or elect to be taxed as a corporation.

All paid tax return preparers, including owners of a tax‑preparer LLC, must obtain a PTIN.

Required if the LLC will transmit client returns electronically to the IRS.

LLC taxed as a partnership files Form 1065; a single‑member LLC taxed as a disregarded entity reports on Schedule C.

Even a single‑member LLC that hires staff must file these employment tax forms.

All Tennessee employers with 5 or more employees must carry workers’ comp insurance. Coverage is optional for sole proprietors and partners unless in construction.

All Tennessee LLCs are subject to franchise and excise tax. Even if no tax is due, a return must be filed annually.

IRS recommends keeping all business tax records for at least 3 years. Employment tax records must be kept for at least 4 years.

State does not require display, but many cities (e.g., Nashville, Memphis) require business licenses to be visibly posted. Check local ordinances.

Required under 29 CFR 1903.1. Poster must be displayed in a conspicuous place where employees can see it.

Employers must display current Tennessee labor law posters, including minimum wage, workers’ compensation, and anti-discrimination notices.

Tax preparers must display a copy of IRS Circular 230 notice informing clients of their rights and the preparer’s obligations. Required at physical locations and on websites.

Local fire and building codes require periodic inspections. Frequency and requirements vary by city or county. Contact local authorities for exact schedule.