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There isn't a requirement in Tennessee for sole proprietors to acquire a general business license, but depending on the nature of your business you may need other licenses and/or permits to operate in a compliant fashion.
"You should remember the Tennessee's Home Improvement law prohibits contractors from asking for a down payment of more than 1/3 of the total contract. So if someone is pressuring you to pay more than 1/3 of the cost of the contract or telling you to pay all of what the project costs, you should walk away.
If you want to get your license and start your own general contracting business, you must make sure you have all of your documents in order. Tennessee requires financial statements for all applicants, a letter of reference and proof of workers' compensation and general liability insurance.
Low Voltage (less than 70 volts) : Sound, Intercom, Fire Detection; Telephone Lines (CE-F); and Cabling (CE-G); or Alarm Systems (CE-D) - No exam with our Board for a low voltage CE-D; however, must obtain license with the "Alarm Systems Contractors Licensing Board" for their separate licensing and examination
A Tennessee contractor's license is required BEFORE bidding or offering a price, for projects $25,000 and up (includes materials and labor), as a prime (general) contractor; and also subcontractors performing electrical, mechanical, plumbing, HVAC, roofing and masonry are also required to be licensed as a contractor,
Even if someone engages in work that would make them a contractor under Tennessee law, so long as the total cost of the work does not equal or exceed $25,000.00, they do not need to have a license (for masonry contractors that threshold jumps to $100,000.00).
State law exempts gross receipts from services provided by medical, dental, legal, and educational providers and certain services provided by nonprofit membership organizations. Services by religious and charitable organizations and veterinary services are also exempt from business tax.
Construction Managers of any kind must be licensed as a contractor if the total project exceeds $25,000. Joint Ventures: All contractors must be licensed to contract as a joint venture and may combine their monetary limit to bid a project.
A handyman in Tennessee is not required to hold a state license unless the job they are working on is worth more than $25,000. A home improvement license is required for remodeling jobs worth between $3,000 and $24,999. Licenses are awarded by the Department of Commerce and Insurance Board for Licensing Contractors.