To start a coffee shop in Tennessee, lock down zoning and permits first, then align taxes, build‑out, and staffing. Form an entity and register with the Tennessee Secretary of State, get an EIN, then register with the Department of Revenue for sales and use tax (coffee beverages are “prepared food” taxed at 7% state plus up to 2.75% local) and the Tennessee Business Tax; obtain a minimal activity license ($3k–$10k receipts) or standard business license ($10k+) from your county/city clerk. Before construction, submit plans to the local health department for Food Service Establishment plan review, secure a Certified Food Protection Manager on staff, and schedule pre‑opening inspections; add beer only if you’ll pursue a local beer permit. Confirm zoning/parking, sign permit, and a Certificate of Occupancy after fire and building inspections; ADA access is enforced. Design for workflow: 200‑amp electrical, 220V for espresso, water filtration, floor drains/grease interceptor, Type I hood only if producing grease‑laden vapors. Negotiate a lease with TI allowance, HVAC capacity, and drive‑thru rights (key in Nashville, Knoxville, Memphis). Set up payroll, unemployment insurance, and workers’ comp once you reach 5+ employees. Budget $250k–$500k; bridge gaps with SBA 7(a)/504 and pre‑opening cash equal to 6 months’ expenses.
