Tennessee Sales And Use Tax License Requirements & Application (May. 2026)

After the state approves your Articles of Organization, your Tennessee Limited Liability Company (LLC) is officially created. However, you still need to register for state taxes before carrying out operations.

The Tennessee Sales and Use Tax License is one of the most common and essential permits to obtain. Any LLC that offers tangible personal property is required to register through the Tennessee Department of Revenue’s Taxpayer Access Point (TNTAP). The department doesn’t charge anything for this registration.

In this guide, I’ll explain how to complete the registration process one step at a time.

Overview Of The Tennessee Sales And Use Tax License

Individuals or businesses that sell, lease, or rent tangible goods, or offer taxable services in Tennessee, need to register for Sales and Use Tax. This applies even when the goods sold qualify as tax-exempt under SUT 10 – Department of Revenue.

The table below summarizes when different types of businesses are required to register for Sales and Use Tax in Tennessee. I will explain these requirements further below:

Business owners can register for the Tennessee Sales and Use Tax License online. To do so, you’ll use the TNTAP. There is NO registration fee, and Tennessee provides a single license that covers both Sales and Use Tax.

Once you obtain the license, you are legally required to collect and remit Sales Tax. Tennessee Sales Tax rates vary by business location and consist of two components: a 7% state rate and a variable local rate, which can be found on the Local Sales Tax Rates Map.

How To Register For Tennessee Sales And Use Tax Using TNTAP

If you already created a TNTAP account, you can add a Sales and Use Tax account. You just need to start by signing in with your current login details. That said, in this guide, I explain how to complete registration starting from the beginning.

Start by visiting the TNTAP website to register for taxes and create your Department of Revenue account.

1. Find The TNTAP Registration Form

After entering the portal, find the Registration section on the main screen. Select the “View registration links” button to display available registration options.

Next, choose “Register a New Business” to open the Tennessee Sales and Use Tax License form and begin the online application process.

2. Provide Entity Details

a. Validate Foreign Entity Status

The form asks whether your business is a non-U.S. entity. Select Yes or No depending on your LLC’s status, then proceed.

b. Enter Entity Details

On this page, provide your LLC’s identifying details to guarantee accurate registration:

• Entity type: Choose Limited Liability Company from the dropdown menu.
• LLC type: Pick between Single-member or Multi-member, depending on your structure.
• State of original charter/certification: Select Domestic or Foreign, according to your formation location.
• Primary ID: Provide your LLC’s EIN.

Make sure that all details align with those provided in your Articles of Organization filed with the state.

c. Tax Registration Required Letter

If you got a notice titled Tax Registration Required from the Tennessee Department of Revenue, input the requested information.

If you didn’t receive this notice, leave the fields empty and select Next to carry on with the application.

3. Fill Out The Alcohol Survey

Next, specify whether your LLC produces alcoholic beverages by choosing Yes or No, then click Next.

If you select Yes, indicate if your business qualifies as a Tennessee distillery for county tax distribution purposes. Tennessee distilleries need to submit a monthly informational report through TNTAP with the following obligations:

• Report total gallons sold within the state.
• Submit the report within the first four business days of the following month.
• No payment is required with this filing.

4. Select “Sales And Use Tax”

On this screen, choose the tax types your business is required to register for. Click each tax name to read its description. Based on previous responses, TNTAP may automatically add necessary tax accounts that need to be filed together by law.

In this guide, I’ll explain how to respond to Sales and Use Tax registration only.

That said, keep in mind that most LLCs also have to register for business tax. After reviewing your selections, select Next to proceed.

5. Complete Sales And Use Tax Survey

The form evaluates whether your LLC should complete a Sales and Use Tax License application by asking threshold-based and activity-based questions.

First, the form wants to know if your gross sales are over $4,800 per year.

If you select Yes, the form asks whether you operate as a marketplace facilitator and if you think you’ll owe $200 or more in monthly Sales Tax. You’ll also need to specify if you maintain a physical presence in Tennessee, which includes a store, employees, inventory, or delivery vehicles.

If you choose No, the form asks whether your taxable services surpass $1,200 annually and whether you hold a direct wine shipper license. You’ll also need to answer whether you anticipate owing $200 or more in monthly Sales Tax. Finally, the form wants to know whether you have a physical presence in Tennessee.

Once the form is completed, TNTAP confirms if your LLC is required to register and remit Sales and Use Tax. Click Next to proceed.

6. Answer The Retail Accountability Program Survey

For this next step, TNTAP wants to know if your business operates as a wholesaler, distributor, or manufacturer. Plus, they’ll ask you if you intend on selling regulated products.

According to your responses, TNTAP will indicate if Retail Accountability Program (RAP) registration is necessary. Click Next after completing the questions to continue.

7. Provide Your Business Name And Identification

Provide your LLC’s legal name exactly as it shows up on your formation documents, alongside your Secretary of State (SOS) number. Once you confirm the details are right, click Next to proceed.

8. Give Your Primary Business Address

At this step, you’ll enter your LLC’s main address, including street, city, state, and zip code. After providing the address, click Verify Address to validate the location in the system.

a. Address Validated Successfully

If the system confirms the address is valid, it shows a “Verified” status. Click Next to continue.

b. Address Not Confirmed

If the system can’t automatically validate the address, TNTAP gives you alternative options.

Choose the option that best aligns with your business location, save your choice, and click Next to proceed.

9. Enter The Mailing Address

Next, the form wants to know if your mailing address is identical to your primary business address.

If the mailing address matches exactly, select Yes and click Next to move on.

If it’s different, select No, enter the right mailing address, and press the Verify Address button.

a. Address Successfully Confirmed

If verified, the system displays “Verified”. Click Next to continue.

b. Address Not Confirmed

If the system can’t verify the mailing address, TNTAP provides alternative addresses.

Pick the one that is closest to your mailing address, save your selection, and click Next to proceed.

10. Add Stakeholder Details

For this part, provide details for the owners or members of your LLC. TNTAP stores this information to associate responsible individuals or entities with the business as it relates to taxes and administration.

a. Input Name And Identification Information

Give the required identification information for each stakeholder linked to your LLC:

• Title: Choose Member, whether the stakeholder is a person, a company, or single-member LLC.
• Name: Enter the stakeholder’s legal name.
• ID type and number: Pick the appropriate ID type and enter its number.

After filling out these details, proceed to the next step.

b. Provide Contact Details

Enter each stakeholder’s contact information, including email address and phone number. Click Next after completion.

c. Insert The Member Address

The form asks if the member’s address matches the LLC’s main business address.

If the addresses are the same, select Yes and click Next.

If the addresses are different, click No, and enter the correct address. Then, press the Verify Address button.

c1. Address Is Successfully Validated

If the address is valid, the system shows “Verified”. Once this occurs, click Next to carry on.

c2. Address Is Not Validated

If the address can’t be confirmed, TNTAP provides alternative options. Choose the option that best aligns with the member’s address, save it, and click Next.

d. Review Member’s Information Confirmation

TNTAP shows a confirmation screen that gives an overview of the stakeholder’s details after they have been entered.

Review them carefully for accuracy, then click Next to proceed.

e. Enter Additional Stakeholders

The system will then prompt you to answer whether you want to enter another stakeholder for your LLC.

• If you choose No, you can continue to the next part of the application.
• If you select Yes, you’ll need to complete the exact steps you took to enter details for the additional stakeholder.

11. Specify Account Location Attributes

This section gathers information about where and how your LLC operates at a specific business location.

a. Business Location Start Date

Provide the date your LLC started operating at this location.

b. DBA Name

If your LLC uses a Doing Business As (DBA) name, enter it here. If your business conducts operations only under its legal LLC name, leave this field empty and proceed.

c. Business Activity

In this next part, you’ll be asked to select the main business activity for your LLC at this location. To do so, you’ll need to use the appropriate North American Industry Classification System (NAICS) code.

c1. Search For A NAICS Code

Select Look up to search for the NAICS code that best fits your business activity.

c2. Give A Business Description

Enter one or more keywords describing your business activity, then click Search to see matching NAICS codes.

c3. Choose The Correct NAICS Code

Go over the results and choose the NAICS code that accurately reflects your LLC’s main activity.

You can scroll to get detailed descriptions or navigate to additional codes. Click OK to confirm your selection.

d. Location Address

For this step, enter the physical address where your LLC operates at this location.

If it matches your primary business address, tick the checkbox to confirm.

If it differs, input the full address and click Verify Address to keep going.

d1. Address Is Successfully Confirmed

If the system confirms the address, it shows “Verified”. Once this happens, click Next to continue.

d2. Address Is Not Confirmed

If the address can’t be validated automatically, TNTAP gives you other choices. Pick the option that best aligns with your business location and keep going.

e. Location Mailing Address

Confirm the mailing address for this business location.

If it’s identical to the location address, click on the checkbox and proceed.

If your mailing address is different, enter the right one, and click Verify Address.

e1. Address Verified Successfully

Once verified, the system displays “Verified”. You can now proceed to the next section.

e2. Address Is Not Verified

If the address can’t be confirmed automatically, TNTAP provides alternative addresses. Choose the option that is the most similar to your mailing address and continue.

f. Verify Account Types At This Location

On TNTAP, you will see the tax account types you previously registered that are linked to this location. Revise the list carefully to make sure everything is exact, then click Next to carry on.

g. Review The Summary

This page shows a summary of all details provided for this location, which includes tax accounts and classifications.

Confirm that everything is accurate, then click Next to proceed.

h. Add Another Location

The system will then ask if you would like to register an additional business location for your LLC.

• Choosing Yes: Repeat these steps for the new location. Each location receives a separate Certification of Registration.
• Answering No: Move on to the next section. You’ll get one Certification of Registration for this location.

12. Appoint An Authorized Representative

This section lets you nominate someone authorized to get in touch with the Tennessee Department of Revenue on your LLC’s behalf.

a. Enter Basic Details

Give the authorized representative’s name and email address.

b. Enter A Primary Phone Number

Input the representative’s phone number and choose the correct phone type from the dropdown list.

Tick the certification box, then click Next to proceed.

13. Review And File Your Registration

The final overview page shows you all the details you provided throughout the registration process. Select Submit to finalize your application.

After submitting, type out your email address to confirm the submission.

14. Registration Confirmation

After your registration is submitted, TNTAP produces a confirmation PDF. Click Print Confirmation to see it and save a copy for your records.

15. Approval Time

The Department of Revenue doesn’t specify exact approval times. Since Sales and Use Tax registration can be completed alongside business tax, it generally follows the same processing time. That said, it can take anywhere between 10–25 days.

Getting a hardcopy of the Certification of Registration may take an additional 7–14 days for mailing.

Tennessee Sales Tax License Requirements

After registering, there are additional steps to ensure your license remains valid and compliant with Tennessee law.

1. Show Your License At Your Business Location

Under Rules of DOR 1320-05-01-.90, vendors need to notify customers when they are paying Sales Tax.

After you’ve registered for this tax, the Department of Revenue will send your business a Certificate of Registration. You can comply by:

• Displaying the certificate at your business location.
• Outlining it on invoices or bills.
• Posting a sign indicating that prices include applicable Sales Tax.

2. Each Location Needs An Individual License

According to Rules of DOR 1320-05-01-.63, every business location requires a distinct Certificate of Registration for Sales and Use Tax. If you relocate, change the information in your TNTAP account and display an updated certificate at the new address.

3. License Validity And Filing Tax Due Date

Sales Tax licenses don’t have an expiration date. However, the DOR can invalidate a license if you infringe tax laws, which I’ll touch on later.

Sales and Use Tax due dates depend on your filing frequency, as determined by TNTAP during registration. You can fall into one of three categories:

• Monthly filers: Due on the 20th of the month after the reporting period.
• Quarterly filers: Due on the 20th of the month following the quarter.
• Annual filers: Due January 20 each year.

Keep in mind that if a due date falls on a weekend or holiday, the deadline extends to the next business day.

Who Is Required To Register?

As mentioned above, the Sales and Use Tax registration requirements vary by business type, so I’ve summarized them below for clarity.

1. Businesses With A Physical Address In Tennessee

Any individual or business that sells, leases, or rents tangible personal property in Tennessee needs to register for Sales and Use Tax. The same applies to anyone who offers taxable services within the state, even if some goods are tax-exempt.

You’re required to pay tax if your sales fall into one of these categories:

• Over $400 per month in sales of tangible goods.
• Over $100 per month in taxable services.

2. Marketplace Facilitators

A company is considered a marketplace facilitator if it runs a platform where third-party sellers conduct sales.

If the platform generates over $100,000 in Tennessee sales within the past 12 months, it needs to collect and file Tennessee Sales Tax. If sales do not reach this threshold, registration isn’t mandatory.

3. Out-Of-State Business

Let’s suppose you’re operating an out-of-state business without a physical presence in Tennessee. If you sell $100,000 or more to Tennessee customers in a year, you’ll need to register and charge Sales and Use Tax.

This $100,000 threshold includes all retail sales, even tax-exempt items, but excludes sales made for resale.

What Happens If You Don’t Hold The Sales Tax License?

As mentioned above, running your business without the proper license can lead to penalties and, in some cases, imprisonment. Below are some serious situations to keep in mind.

1. Penalties For Not Securing A Sales And Use Tax License

You might owe the license fee for each month, or part of a month, that you conduct operations without a license. This is ruled under Tenn. Code Ann. § 67-4-1015.

On top of this, the Commissioner of Revenue can add a penalty of up to $250 per day while the violation is ongoing.

2. Consequences For Not Filing Taxes On Time

Even if you fail to register, your tax obligations begin as soon as your LLC is officially recognized by the state. Failing to hold a proper license may result in penalties for late tax filings.

Under Tenn. Code Ann. § 67-1-804(a), penalties can include:

• A minimum penalty of $15 for a delinquent return, even if no tax is owed.
• 5% of unpaid taxes per month (or fraction of a month) after the due date, up to a maximum of 25% of the unpaid amount.

Interest accrues at the most up-to-date rate. As of now, the rate for all taxes claimed or administered by the Department of Revenue is 11.50%. This will remain valid until June 30, 2026.

This rate changes yearly, but you can verify the latest rate on Department of Revenue Tax Helps – Gen 16.

3. Penalties If Non-Filing Is Considered Fraud

If your actions are deemed fraudulent, a penalty of 100% of the underpayment can be applied under Tenn. Code Ann. § 67-1-804(c).

4. Penalties If Non-Filing Is Deemed Criminal

Intentionally submitting a false return to evade taxes is a Class E felony under Tenn. Code Ann. § 67-1-1440. If the amount involved is under $500, it’s classified as a Class A misdemeanor.

Class E felony penalties (Tenn. Code Ann. § 40-35-111(b)) include 1–6 years in prison and fines up to $3,000.

As for class A misdemeanor penalties, they can include up to 11 months and 29 days in jail. Another sanction for this misdemeanor is being charged up to $2,500, or both, unless another law is suitable. This is ruled under Tenn. Code Ann. § 40-35-111(e).

Frequently Asked Questions