Middle Tennessee county courthouse, Williamson county business license

Williamson County Business License: Franklin and Brentwood

Williamson County Business License: Franklin and Brentwood

If you're starting or operating a business in Franklin or Brentwood, you'll need to navigate Williamson County's business licensing requirements. Unlike some states with a single statewide license, Tennessee requires you to work with both the state and your local county or municipal government. This guide walks you through exactly what you need, where to apply, and what it costs.

Williamson County Overview

Williamson County is one of Tennessee's fastest-growing regions, home to Franklin and Brentwood. Franklin, the county seat, sits just south of Nashville and has become a thriving business hub. Brentwood, incorporated in 1969, has grown into a prosperous community with its own municipal licensing system. Both cities attract entrepreneurs, from home-based startups to retail and professional services.

Because Franklin and Brentwood are separate municipalities within Williamson County, each has its own licensing requirements in addition to county requirements. This matters: a business in Franklin gets a license from the city of Franklin, while one in Brentwood deals with Brentwood's process (though both ultimately fall under Williamson County jurisdiction).

Do You Need a Business License?

Tennessee requires nearly all businesses operating within the state to hold a business license. The exception is general partnerships, which do not need a state license but must still comply with local licensing rules in Franklin or Brentwood.

If your business has any physical presence, employees, or makes sales in Franklin or Brentwood, you need a license. Home-based businesses are not exempt. The threshold is straightforward: if you're conducting business and generating revenue, you need a license.

The state distinguishes licenses by gross receipts:

  • Minimal activity license: Gross receipts from $3,000 to $99,999 per year
  • Standard business license: Gross receipts of $100,000 or more per year

Even if you're below the $3,000 threshold, your city or the county may still require you to register. Check with Franklin City Clerk or the Brentwood City Clerk before assuming you're exempt.

How Tennessee's Licensing System Works

Tennessee has no single statewide business license that covers all operations. Instead, the system works like this:

State Level: The Tennessee Department of Revenue requires businesses to register for state taxes (sales tax, excise tax, franchise tax depending on your structure). This is separate from your local license.

County and City Level: Williamson County and the cities of Franklin and Brentwood each require local business licenses. You must obtain these before you legally operate in their jurisdiction.

In practical terms, you'll likely be paying for a state registration with the Department of Revenue, plus a county or city license (depending on where your business is located). Franklin businesses pay Franklin. Brentwood businesses pay Brentwood. Both are in Williamson County, so understand which city you're in.

License Types and Structure Considerations

Your business structure affects both your licensing path and your ongoing tax obligations. Here are the main structures available in Tennessee:

Sole Proprietorship

A sole proprietorship is the simplest structure. You and your business are legally one entity. You need a Doing Business As (DBA) filing with the Tennessee Secretary of State if you use any name other than your legal name. Cost: $20. After that, register with Franklin or Brentwood and pay your local license fee.

Limited Liability Company (LLC)

An LLC provides liability protection and is popular with small business owners. You'll file Articles of Organization with the Tennessee Secretary of State ($300 filing fee) and then register with your city for a local license. LLCs in Tennessee also owe franchise and excise taxes to the state: 0.25% franchise tax on Tennessee net worth (minimum $100) plus 6.5% excise tax on Tennessee taxable income. Annual reports are required and cost $300 each year.

Corporation

A corporation is a separate legal entity. Filing your Charter with the Tennessee Secretary of State costs $100. You'll then register with Franklin or Brentwood. Tennessee corporations pay the same franchise and excise taxes as LLCs, and annual reports cost $20 per year.

For most small businesses, an LLC offers better tax flexibility and less administrative burden than a corporation. Consult a tax professional for your specific situation.

Franklin and Brentwood License Requirements

Both Franklin and Brentwood require a business license before you open your doors. Here's what applies to each city:

Franklin Business License

The City of Franklin requires all businesses operating within city limits to obtain a business license. You'll apply through the Franklin City Clerk's office. The license fee is $15, plus any additional city-specific fees depending on your business type (some industries have higher fees). Processing typically takes 3 to 5 business days.

You'll need to provide your business name, address, the owner's name, your business structure (sole proprietorship, LLC, corporation, etc.), and a description of what your business does. If you've filed a DBA or formed an LLC or corporation with the state, bring that documentation.

Brentwood Business License

Brentwood requires the same basic license. The application fee is also $15, plus any industry-specific surcharges. Brentwood's City Clerk's office processes applications, usually within 3 to 5 business days.

The process is nearly identical to Franklin's: provide your business details, proof of your business structure (if any), and your local address.

Williamson County Business License

If your business operates outside Franklin or Brentwood city limits but within unincorporated Williamson County, you'll apply through the Williamson County Clerk's office instead. The fee structure is similar ($15 base plus potential surcharges), and the application process mirrors that of the two cities.

State Registration and Tax Requirements

Before or alongside your local license, you must register with the Tennessee Department of Revenue for state purposes. This is not optional, regardless of whether you're profitable yet.

Sales Tax: If you sell taxable goods or services, Tennessee's statewide sales tax is 7%. Some local cities and counties add additional sales tax, so your total may be higher. You'll collect sales tax from customers and remit it monthly or quarterly to the state, depending on your volume.

Franchise and Excise Tax: LLCs and corporations pay both. The franchise tax is 0.25% of your Tennessee net worth with a $100 minimum per year. The excise tax is 6.5% of Tennessee taxable income. These are due with your annual return, which must be filed by the 15th day of the fourth month after your fiscal year ends (typically April 15 for calendar-year businesses).

No Income Tax: Tennessee has no state personal income tax, which is one advantage of operating there. This applies whether you're a sole proprietor, LLC member, or shareholder.

Register with the Tennessee Department of Revenue through their online portal at tn.gov/revenue. Registration is free, but you must do it before you legally operate.

Step-by-Step: Getting Your Williamson County License

Step 1: Decide Your Business Structure Sole proprietorship, LLC, or corporation. Each has different filing requirements with the state.

Step 2: File with the Tennessee Secretary of State (if needed) If you're forming an LLC or corporation, file your Articles of Organization or Charter. If you're using a DBA, file that. This step costs $20 to $300 depending on your structure.

Step 3: Register with Tennessee Department of Revenue Apply for sales tax permit and state tax registration at tn.gov/revenue. This is free but required.

Step 4: Apply for Local Business License Contact Franklin City Clerk, Brentwood City Clerk, or Williamson County Clerk depending on your location. Submit your application with required documentation. Fee: $15 plus any industry-specific surcharges.

Step 5: Post Your License Once approved, you must display your license at your place of business before operating. Failure to do so can result in fines.

Step 6: Plan for Annual Renewal Most licenses renew annually in the calendar year or on your business anniversary. Set a reminder.

Costs and Timeline

Here's what to expect financially and timewise:

Item Cost Timeline
DBA filing (if applicable) $20 5 to 7 business days
LLC formation $300 Same day (e-file) or 5 to 7 days (mail)
Corporation formation $100 Same day (e-file) or 5 to 7 days (mail)
Franklin or Brentwood business license $15+ 3 to 5 business days
State registration (Department of Revenue) Free Same day to 2 business days
Annual LLC report (if applicable) $300 Due April 1 each year
Annual corporation report (if applicable) $20 Due April 1 each year

Most small businesses can complete the process in 1 to 2 weeks, assuming documents are in order and applications are complete.

Renewal and Ongoing Compliance

Your business license must be renewed annually. Franklin and Brentwood typically send renewal notices 30 to 60 days before expiration. Pay attention to the deadline: operating without a valid license can trigger fines of $50 to $500 or more, depending on the violation.

If you formed an LLC or corporation, you'll also owe annual state reports and taxes. Mark your calendar:

  • LLC annual report: Due by April 1, costs $300
  • Corporation annual report: Due by April 1, costs $20
  • Franchise and excise tax return: Due by the 15th of the fourth month after your fiscal year ends

Staying on top of these dates keeps your business compliant and avoids penalties.

Where to Apply and Contact Information

Franklin City Clerk: Contact through the City of Franklin's website or visit the Franklin City Hall. Phone and application details are available at the city's official site.

Brentwood City Clerk: The City of Brentwood publishes its licensing information and application forms online. Applications can often be submitted online or in person at Brentwood City Hall.

Williamson County Clerk: For businesses in unincorporated County areas, contact the Williamson County Clerk's office in Franklin.

Tennessee Secretary of State (Filings): sos.tn.gov/businesses provides online filing through TNCaB (Tennessee Charity and Business Filing System) at tncab.tnsos.gov/portal.

Tennessee Department of Revenue: tn.gov/revenue for tax registration and guidance.

Tennessee Small Business Development Center (TSBDC): Free business guidance at tsbdc.org.

Important Disclaimer

This guide provides general information about Williamson County and Tennessee business licensing. It is not legal advice, tax advice, or a substitute for professional consultation. Requirements can change, and your specific situation may have unique considerations. Before launching your business, consult a licensed attorney for legal questions and a qualified tax professional (CPA) for tax planning. The City of Franklin, City of Brentwood, and Tennessee Department of Revenue are the authoritative sources for current fees, deadlines, and requirements.

Next Steps

Ready to start? Here's what to do right now:

  1. Decide whether you'll operate as a sole proprietorship, LLC, or corporation.
  2. Check the Tennessee Secretary of State website to ensure your business name is available (or search at tncab.tnsos.gov/portal/business-entity-search).
  3. If incorporating, file with the state.
  4. Register with the Tennessee Department of Revenue for sales tax and state tax purposes.
  5. Apply for your Franklin or Brentwood business license through the appropriate city or county clerk.
  6. Display your license and begin operations.

Williamson County welcomes entrepreneurs. Getting licensed properly sets a professional foundation and keeps you compliant with state and local law.

Keep exploring: related Tennessee guides