“Tru, I have a business idea, but I don’t know where to start.” I get this comment all the time and it can be time-consuming to have this conversation in passing at the grocery store. I decided to finally sit down and write the 6 top steps you should take to start a business in Jackson, Tennessee in 2021.

1. Name your Business

   • Choose a name that is unique to your products and services. You want to be sure to stand out and make it clear for consumers to know exactly what you offer! Also, make sure the name for your LLC, Corporation, or Partnership isn’t taken. Check name availability at the TN Secretary of State’s website here. Name availability checks for sole proprietorships are not available on the SOS website.

2. Decide on a Legal Structure: The legal structure will determine what type of tax return is required to file with the IRS.

   • Sole Proprietor: The simplest form of business where the owner and business are one in the same. Organizational documents are not required in the state of TN to form a sole proprietorship.

   • Partnership: Consist of more than one owner who all contributes “money, property, labor, and skill and shares the profits and losses of the business.”

   • LLC: Limited Liability Company allows the owner to pay taxes on their own individual tax return. With an LLC you are not personally responsible for business liabilities, legal judgments, or business debt.

   • Corporation: An entity legally separate from its owners. Requires extensive record-keeping, but legal protections are the best for its owners.

3. Get a License and/or Permit and confirm Zoning: If you are earning more than $3,000 per year with your side hustle, to be legit you need a business license or permit. You are required to have both a city and county license. To see a list of license and permit options for the city of Jackson click here. The application can be download here.

   1. Complete this application and return it to the City of Jackson’s Revenue Department.

   2. Stop by the country clerk’s office to obtain the city and county license. The application fee is $15 each.

4. Taxes: Don’t avoid the taxes, Uncle Sam will find you. You can register your state of TN tax account online here. If you are selling a product or service you will more than likely need to register for sales and use taxes, TN 9.75% (7% TN sales tax, 2.75% Madison county tax).

   1. Sale and uses taxes are to be filled and paid quarterly based on gross revenue receipts. This can be done online here. This tax is not the same as federal income tax. Please consult with an accountant if you need help figuring out the best legal and tax structure for your business.

5. Insurance: Get liability insurance. A licensed insurance agent. I recommend Ryan Jeans with State Farm. Allstate has a great insurance program for small businesses.

6. Banking: Find you a Business Banker! I bank local with Sherita Greer Graham at Bancorpsouth 731-422-9434. If you are looking for someone local, contact Sherita to discuss your business banking needs. I also bank online with AZLO!

OKAY! Start here! I hope this helps.

Trunetta