To open a coffee shop in Tennessee, secure a local business license and a retail food service permit, then register for sales tax—these are the nonnegotiables. Apply for a Minimal Activity Business License with your city/county clerk if annual gross receipts will be $3,000–$100,000; if you’ll exceed $100,000, obtain a Standard Business License and register for Tennessee Business Tax with the Department of Revenue. Register online with the Tennessee Department of Revenue for a Sales and Use Tax account (prepared coffee and pastries are taxable). Before build‑out, submit plans to your local health department for approval: include menu, scaled layout, equipment spec sheets (NSF/ANSI), plumbing, ventilation, and finish schedules. Expect requirements like a three‑compartment sink, hand sinks, commercial refrigeration holding 41°F, a certified food protection manager, and backflow prevention on espresso and ice equipment. Coordinate early with the sewer authority on grease interceptor sizing (many cities require one even for coffee/cream). Pull building, electrical, plumbing, and mechanical permits; get fire marshal approval for occupancy and any Type II/hood needs if cooking. If serving beer, obtain a beer permit; wine/cordials require a TABC license. Finally, set up EIN, unemployment insurance, and workers’ comp (≥5 employees), and verify zoning/parking and sign permits.
