Starting a small business in Tennessee can be a challenging but rewarding experience. Whether you’re looking to open a new restaurant, launch a technology startup, or turn a hobby into a profitable side hustle, Tennessee is an excellent place for entrepreneurs to succeed.
Where do you begin? If you’re wondering how to start a small business in TN, you’ve landed on one of the most helpful resources available. Kingsport CPA has served small businesses across Northeast Tennessee since 1999, and we’ve helped many new startups succeed and expand. Our financial professionals know what it takes to help new businesses handle their finances accurately and astutely.
How do you start a new business in Tennessee? Follow these critical steps to begin correctly and prepare for a long and profitable future.
Conduct Market Research
Is there a market in Tennessee for your business and industry? Or, simply put, do others want or need what you have to offer? Before launching your business, it’s essential to understand your target market and competition. Conducting market research can help you identify gaps in the market, assess demand for your product or service, and develop a competitive pricing strategy.
The Haslam College of Business at The University of Tennessee at Knoxville provides excellent market research and other vital business services for new and small businesses.
Develop a Business Plan
A well-crafted business plan is essential for securing funding, attracting investors, and mapping your company’s growth. Your business plan should include your company’s name and detailed description, market research, financial projections, and a marketing strategy. You may choose any business name you desire in Tennessee if it follows basic naming conventions and is not already in use. You can use the Name Availability Search from the Tennessee Secretary of State website to see if your preferred name is available. Also, the Tennessee SMART START Small Business Guide is a handy resource for developing a sound business plan.
Choose a Business Structure
There are several business structures to choose from, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each structure has its own advantages and disadvantages, so research here is crucial to determine which structure is right for your business.
You might run a sole proprietorship or a single-member LLC if you’re the business’s sole owner. You don’t have to register a sole proprietorship. Other legal business designations include:
- Corporation: Company, corporation, incorporated, company, Co., Corp., or Inc.
- Limited liability company: Limited liability company, L.L.C. or LLC
- Limited partnership: Limited partnership. L.P. or LP
- Limited liability partnership: Registered limited liability partnership, L.L.P. or LLP
A Kingsport CPA financial professional can also explain each business type’s financial and tax benefits. Contact us to learn more.
Register Your Business
You must register your business with the Secretary of State’s office to operate legally in Tennessee. You do not need a general business license. Still, you may need to obtain any necessary licenses and permits, such as a business license, sales tax permit, or professional license in your local jurisdiction. You must file formation papers with the state if you are beginning any business that is not a sole proprietorship or general partnership.
Visit the TN Secretary of State’s office website to register a business in Tennessee online. When you register a business in Tennessee, you must also file your articles of organization to open an LLC or a charter to open a new corporation.
Secure Funding
Starting a business can be expensive, and you’ll likely need to secure funding to cover startup costs, such as equipment, inventory, and marketing expenses. Some options for funding include loans from banks or the U.S. Small Business Administration (SBA), crowdfunding, or angel investors. You may also be able to secure funding through TN Business Grants, Launch Tennessee, or the Tennessee Small Business Development Center hosted by Middle Tennessee State University in Murfreesboro.
Partner with a Professional to Handle Your Finances
Business finances can become complex and daunting. Start off on the right foot by partnering with a financial professional to handle your finances. Kingsport CPA professionals can handle your business bank account, accounts payable and receivables, payroll, sales and payroll taxes, financial audits, and more. We also offer support for QuickBooks business software and other accounting packages.
Small Business Accounting in Kingsport, TN
Starting a small business in Tennessee can be a complex process, but it can also be a fulfilling and profitable venture with the right resources and support. By following these key steps and seeking guidance from experienced professionals, you can increase your chances of success and achieve your entrepreneurial dreams.
Are you looking for how to start a small business in Tennessee? Contact Kingsport CPA for questions about new small business finances. We love serving local area small businesses and contributing to their success!
