Starting a Business in Tennessee? Here’s Your Legal Checklist

Starting a business is exciting—but also full of legal considerations you can’t afford to overlook. Whether you’re opening a boutique on Franklin Street or launching a home-based business in Montgomery County, having a clear legal roadmap is essential. Here's your legal checklist for starting a business in Tennessee.

1. Choose the Right Business Structure

The structure you choose affects liability, taxes, and operations. Common options in Tennessee include:

• Sole Proprietorship

• Partnership

• Limited Liability Company (LLC)

• Corporation (C-Corp or S-Corp)

• Non-Profit

  
  

Most small businesses in Clarksville opt for an LLC for its liability protection and tax flexibility. A business lawyer in Clarksville TN can help you evaluate your options and file the correct formation documents.

2. Choose Your Business Name

The legal name you choose for your business must be available–meaning it is not used by another business.

If your business name differs from your legal name, you’ll need to register a Doing Business As (DBA) name. That name will also need to be available.

3. Register with the tax authorities

Your business needs to register with the Internal Revenue Service, and the Tennessee Department of Revenue. Failing to do so can result in serious liability that could close your business.

4. Secure All Required Business Licenses and Permits

Depending on your industry and location, you may need:

• City of Clarksville business license

• Tennessee State Tax Registration (especially for retail businesses)

• Zoning approval

• Professional licenses (for legal, medical, cosmetology, etc.)

  
  

A Clarksville-based business attorney can help ensure you’ve met all regulatory requirements.

5. Draft Essential Legal Documents

Solid legal documentation protects your business from future disputes. Common documents include:

• Operating Agreement 

• Partnership Agreements

• Employment Contracts

• Independent Contractor Agreements

• Non-Disclosure Agreements (NDAs)

• Client Service Agreements

  
  

Don’t rely on generic templates—get customized, enforceable documents drafted by a local attorney.

6. Understand Local Taxes and Reporting Requirements

Tennessee doesn’t have a state income tax, but you’ll still need to comply with:

• Sales Tax (register with the Department of Revenue)

• Business Tax (file with both state and local governments)

• Employment Tax if you have workers

  
  

Stay ahead of deadlines and penalties by working with a business planning attorney in Clarksville who understands local and state tax requirements.

7. Protect Your Intellectual Property

If your brand name, logo, or product design is original and valuable, consider protecting it with:

• Trademarks

• Copyrights

• Patents

  
  

This is especially important for businesses in creative, tech, or product-based industries.

8. Set Up a Business Bank Account and Accounting System

Keeping personal and business finances separate is crucial. Open a business checking account and consider accounting software like QuickBooks. Work with a local CPA or bookkeeper to ensure you’re tracking income, expenses, and payroll correctly.

9. Get Business Insurance

Insurance helps protect against unexpected liabilities. Common policies include:

• General liability insurance

• Professional liability insurance

• Workers’ compensation (if you have employees)

  
  

10. Plan for the Future

Business planning isn’t a one-time event. As you grow, consider:

• Succession planning

• Exit strategies

• Buy-sell agreements

  
  

Work With a Business Lawyer in Clarksville, TN

Navigating the legal landscape of business ownership doesn’t have to be overwhelming. Partnering with a business lawyer in Clarksville, TN ensures that you start strong and stay compliant as your company grows.

At Ufford Law & Mediation Offices, we help local entrepreneurs with business formation, contracts, compliance, and long-term legal planning.

Starting a Business in Tennessee with Ufford Law

Whether you're a first-time founder or expanding an existing venture, following this legal checklist can help safeguard your business and position it for long-term success. Let Ufford Law & Mediation Offices guide you through every step of the business startup process in Tennessee.

Contact us today using our consultation form to schedule a consultation and get your business started on solid legal ground.