Shelby County, TN Business License and Business Tax Guide

First, check whether your address is in a city or unincorporated Shelby County

Before you ask, “Do I need a Shelby County business license?” find out exactly where the business is located.

That means more than knowing your mailing address. A Memphis mailing address does not always answer every zoning or tax question by itself. You should confirm whether the business location is:

• inside the City of Memphis;
• inside another Shelby County municipality, such as Arlington, Bartlett, Collierville, Germantown, Lakeland, or Millington;
• in unincorporated Shelby County; or
• mobile, home-based, online, or operating at temporary locations.

Shelby County’s official local government directory lists the local governments in the county, including Memphis, Arlington, Bartlett, Collierville, Germantown, Lakeland, and Millington. Use that as a reminder that the county is not the only local layer.

Practical address checks

• Ask the Shelby County Clerk whether your address needs county-only or county-plus-city business license handling.
• Use the Tennessee Department of Revenue city and county business tax dashboard to see whether the city has enacted a business tax.
• Check zoning before signing a lease or opening to customers.
• If your address is in Memphis or unincorporated Shelby County, review the Develop901 zoning and building resources.
• If your business is in Bartlett, Collierville, or another municipality with separate offices, check that city’s business license, planning, building, and fire pages directly.

What Shelby County, TN may handle

Shelby County’s main business licensing office is the Shelby County Clerk Business Tax Division. The county page uses the term business license and says businesses operating within Shelby County must obtain a business license and report gross receipts to the Tennessee Department of Revenue each year.

The important point is that this is not just a random county permit. It is tied to Tennessee’s business tax system. The Tennessee Department of Revenue handles business tax registration and annual business tax filing. The county clerk handles the local license issuance and local registration fee process.

County business license / business tax license layer

The county clerk page says businesses continue to register with the County Clerk’s Office after starting business, and that a separate city business license is required if the business operates inside a municipality.

The Tennessee Department of Revenue currently explains that a separate local business license registration fee is paid to the county and/or municipal clerk for each new business, after registering for business tax through TNTAP when required.

Because the state business tax threshold changed for tax years ending on or after December 31, 2023, do not rely on old copies, old screenshots, or old forms without confirming. The state page currently uses the $100,000 threshold for the standard business license level and the more-than-$3,000-but-less-than-$100,000 range for minimal activity licenses.

County permits and regulated business items

Shelby County also lists or links to several business-related forms and permit pages through the County Clerk Business Tax Division. These may matter for certain businesses, especially if the business is outside a municipality or uses a county-administered process.

• Beer permits: Shelby County says businesses located outside any municipality that sell, distribute, manufacture, or store beer must obtain a permit from the Shelby County Clerk. Employees who serve, sell, or handle beer in those establishments must also register with the clerk.
• Liquor by the drink tax: Shelby County says establishments outside any municipality that sell and dispense alcoholic beverages for on-premise consumption must register with the Shelby County Clerk.
• Transient vendor license and permit: Shelby County defines transient vendors and says they must obtain both a transient vendor license and transient vendor permit from the Shelby County Clerk’s Office.
• Short-term rental property permit: Shelby County’s short-term rental application is handled through the county clerk process and includes rules about local code, fire safety, responsible party information, room occupancy tax, and renewal timing. Memphis or other city rules may still apply depending on location.
• Going out of business, flea market, pawnbroker, private process server, room occupancy, rental car, and similar items: these appear in the county clerk’s business tax forms and related pages. Confirm the exact current requirement before relying on a form.

County health department layer

The Shelby County Health Department Environmental Health and Food Safety Program issues permits for several food service establishments, including farmers markets, mobile food units, temporary events, and retail food service establishments. It also lists food-related inspections for restaurants, mobile food trucks, daycare centers, and temporary events with food vendors.

The health department also lists non-food related inspections such as hotels and motels, organized camps, swimming pools, tattoo and body piercing establishments, barbershops, coin-operated laundry, funeral homes, personal care homes, and trailer courts.

If you sell, prepare, cook, hold, serve, package, or dispense food to the public, ask the health department before buying equipment, signing a lease, or building out a kitchen.

What Memphis and other cities or towns may handle

If your business is inside Memphis, you may have a city layer in addition to the Shelby County and Tennessee layers.

The City of Memphis starting-a-business page points business owners to several steps, including registering a business name, getting tax identification numbers, registering for state and local taxes, and obtaining business licenses and permits. The city page also notes that Shelby County and Memphis have business tax situs codes.

Memphis business and permit layers

For a Memphis address, check:

• the Shelby County Clerk Business Tax Division for the county and city business license process;
• the City of Memphis business and starting-a-business pages;
• Memphis permits for regulated activities;
• Develop901 for zoning, construction, land use, signs, and some building permit activity; and
• the Shelby County Health Department for food, mobile food, temporary food events, and many health-related permits.

The Memphis Permits Office says it processes applications and collects fees and taxes for several city permits and licenses required by ordinance, including on- and off-premises beer sales, special beer sales, liquor by the ounce, compensated and regular dance, special events, scrap metal and junk dealers, scrap tire dealers and haulers, public art, booting licenses, and vehicles for hire.

Other Shelby County municipalities

For Arlington, Bartlett, Collierville, Germantown, Lakeland, or Millington, do not assume the Memphis page answers your question. Check that city or town directly.

A city or town may have its own:

• business license or business tax process;
• planning and zoning rules;
• home occupation rules;
• building permit and certificate of occupancy process;
• fire review or inspection process;
• sign permit process;
• beer, alcohol, vending, special event, or public assembly rules; and
• short-term rental rules.

State-level registrations to check

Tennessee state registrations are separate from Shelby County and Memphis local permits. A local business license does not form an LLC, register a sales tax account, give professional permission, or replace industry permits.

Tennessee business tax

The Tennessee Department of Revenue says business tax generally applies when a business conducts business within a Tennessee county and/or incorporated municipality and meets the applicable gross receipts rules. Business tax consists of a state business tax and, where enacted, a city business tax.

If you are subject to the business tax, registration is handled through TNTAP, the Tennessee Taxpayer Access Point. After registration, the county and/or municipal clerk is the local step for the business license.

For in-state locations, the Department of Revenue currently describes a minimal activity license for receipts above $3,000 but below $100,000, and a standard business license for receipts of $100,000 or more. The Department says the updated $100,000 thresholds apply to tax years ending on or after December 31, 2023.

Sales and use tax

If you sell taxable goods or taxable services, you may need a Tennessee sales and use tax account. Sales and use tax registration, filing, and payment are handled electronically through TNTAP. Some businesses need both a business tax registration and a sales and use tax account.

Franchise and excise tax

Corporations, limited liability companies, limited partnerships, business trusts, and some other entities may need to register for Tennessee franchise and excise tax. This is separate from the local business license.

Secretary of State entity filings

If you form a Tennessee LLC, corporation, nonprofit corporation, limited partnership, or similar formal entity, the Tennessee Secretary of State Business Services division is the state filing layer. Sole proprietors do not become LLCs just by getting a business license.

Employer accounts

If you hire workers, check Tennessee Department of Labor and Workforce Development employer requirements. Tennessee says every employer must complete online registration to determine unemployment insurance liability. You may also have federal payroll tax duties.

Professional and industry licenses

Some work needs a state professional license or industry permit before you open or advertise. Examples may include contractors, cosmetology and barber services, real estate, accountancy, health professions, childcare, alcohol, motor vehicle activity, security, and other regulated fields.

Use the Tennessee Department of Commerce and Insurance Regulatory Boards pages, Tennessee Department of Health professional boards, Tennessee Alcoholic Beverage Commission, and other official state boards for your exact trade or profession.

Federal EIN and federal permits

Many businesses use an Employer Identification Number, often called an EIN, from the IRS. The IRS says you can apply for an EIN directly from the IRS for free. Some regulated industries may also need federal permits.

DBA, fictitious name, assumed name, and trade name layer

In Tennessee, the official state terminology is important. Tennessee Secretary of State search results and business services materials use the term assumed name. The Secretary of State states that Tennessee does not recognize “DBAs” or fictitious names in the way many people use those terms.

In plain English, many people still say “DBA.” In Tennessee, you should ask for the correct assumed name process.

If you have an LLC, corporation, or other registered entity

If a registered entity wants to operate under a name different from its legal entity name, check the Tennessee Secretary of State assumed name filing process. The Secretary of State Business Forms and Fees page lists assumed name forms for several entity types.

If you are a sole proprietor or general partnership

The county business license application asks for a business name and legal name if different. If you are a sole proprietor or general partnership using a business name that is not your personal legal name or partners’ legal names, ask the Shelby County Clerk how the name should be recorded for the local business license and tax records.

Do not assume an assumed name protects the brand like a trademark. Also do not assume it creates an LLC or liability protection. Name filings, local licenses, tax accounts, trademarks, and legal entity formation are separate topics.

Name checklist before you print signs

• Search the Tennessee Secretary of State business name database.
• Check whether your entity needs an assumed name filing.
• Ask the Shelby County Clerk how the name should appear on the business license.
• Check the city or town if local records use a separate name field.
• Consider trademark checks if the name is important to your brand.

Zoning, home occupation, building, fire, health, and industry permits

A Shelby County business license or Tennessee business tax registration is not the same as zoning approval, building approval, fire approval, health approval, or permission to use a sign, food truck, short-term rental, or alcohol license.

Zoning and land use

Develop901 explains that the Unified Development Code serves as the zoning code and subdivision regulations for the City of Memphis and unincorporated Shelby County. Develop901 also says Land Use and Development Services processes applications for zoning changes, subdivision, certificates of appropriateness in historic districts, and other land development actions throughout Memphis and Shelby County.

If your business is in Memphis or unincorporated Shelby County, check the zoning use before you sign a lease, move equipment, advertise from the location, or open to customers. If your business is in another municipality, confirm whether that city has its own zoning process.

Home-based businesses and home occupation rules

Home businesses should be careful. A business license does not automatically mean your home can be used for business activity. Ask zoning about customers, employees, deliveries, parking, signs, outdoor storage, noise, cooking, daycare, beauty services, auto work, and any other activity that could affect the home or neighborhood.

Building permits, construction, and certificate of occupancy issues

Develop901 Construction Enforcement says it reviews plans, issues construction permits, and inspects new buildings and building components for projects in Memphis, Arlington, Germantown, Lakeland, Millington, and unincorporated Shelby County.

If you are remodeling, changing a space from one use to another, adding equipment, changing exits, adding plumbing, building a kitchen, adding signs, or opening to the public, ask whether you need building permits, inspections, or occupancy approval before work begins.

If your project is in Bartlett, Collierville, or another city not handled the same way by Develop901, check that city’s building department directly.

Signs

Develop901 says signs are governed by the Unified Development Code, and that signs constructed, erected, relocated, expanded, or otherwise altered must have a sign permit. It also says sign permits must be renewed annually and are tied to inspection and renewal fee requirements.

Before ordering a wall sign, freestanding sign, window sign, banner, or vehicle sign, ask the local sign or zoning office what is allowed at your address.

Food, mobile food, and temporary food events

The Shelby County Health Department issues food-related permits for several establishment types. Its general food permit document says food service facilities that manufacture, cook, prepare, or dispense food to the public must submit plans and a proposed menu for approval.

For mobile food units, the health department lists required documents such as plans, a proposed menu, business license or Tennessee Department of Revenue registration, lease agreement where applicable, wastewater disposal agreement, floor plan, and commissary agreement.

Food sellers should ask the health department early. This includes restaurants, bars, mobile food units, caterers, farmers market vendors, temporary event vendors, shared kitchen users, and businesses that package or handle food.

Air pollution and environmental permits

The Shelby County Health Department Air Pollution Control Branch lists permit forms for several source types, including fuel burning sources, printing, surface coating, incinerators, storage tanks, generators, and other regulated sources. If your business uses equipment that emits fumes, dust, smoke, vapors, solvents, fuel combustion, or industrial exhaust, ask before installing or operating the equipment.

Beer, alcohol, and liquor by the drink

Beer and alcohol rules may involve more than one office. Shelby County handles beer permits for businesses outside any municipality. Memphis has its own permit office for on-premises and off-premises beer sales, special beer sales, and liquor by the ounce. The Tennessee Alcoholic Beverage Commission handles state alcohol licensing.

Before signing a lease for a restaurant, bar, convenience store, event venue, or alcohol-related business, ask the city, county, and state alcohol offices which approvals apply.

Short-term rentals

Shelby County’s short-term rental application includes county clerk review, local code and fire safety rules, insurance proof, responsible party information, room occupancy tax statements, and renewal rules. Memphis and other cities may also have separate short-term rental rules. Confirm the property’s jurisdiction before listing it online.

Transient vendors, markets, shows, and temporary sellers

Shelby County defines transient vendors as people who bring merchandise into temporary premises and offer it for sale to the public. The county page says transient vendors must obtain both a transient vendor license and transient vendor permit from the Shelby County Clerk’s Office. Temporary sellers should also check event rules, health rules, sales tax rules, and city rules.