State guide · Tennessee
Starting a Medical Practice in Tennessee
What physicians need to know about Tennessee's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or Professional LLC
LLC permitted
No
CPOM enforcement
Moderate
Top income tax
None on earned income (Hall income tax repealed)
Min. franchise tax
Verify — TN franchise tax minimum $100
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Tennessee physicians may form a Professional Corporation under T.C.A. Chapter 48-101-601 et seq. or a Professional LLC under Chapter 48-249. All shareholders or members must be licensed Tennessee physicians.
Filing is with the Tennessee Secretary of State, Business Services Division.
- •Form a Professional Corporation or Professional LLC
- •All shareholders/members must be licensed Tennessee physicians
- •File Charter or Articles of Organization with the Secretary of State
- •File Annual Report with the Secretary of State
Corporate Practice of Medicine
Tennessee recognizes a moderate Corporate Practice of Medicine doctrine. Fee-splitting is prohibited.
Tax Considerations
Tennessee has no personal income tax on earned income (the Hall income tax on interest/dividends was fully repealed in 2021). Tennessee Franchise & Excise Tax applies to most business entities, including pass-throughs.
- •No personal income tax on earned income
- •Tennessee Franchise Tax: 0.25% on net worth, $100 minimum
- •Tennessee Excise Tax: 6.5% on net earnings
- •7% statewide sales tax (plus local up to ~9.75% combined)
Tennessee Board of Medical Examiners
Tennessee does not require entity registration with the Board of Medical Examiners for general practices.
- •No general entity registration required
- •All practicing physicians must hold an active Tennessee medical license
Employment Law Considerations
Tennessee is generally employer-friendly. At-will employment, no state-mandated paid sick leave, and non-competes generally enforceable. Tennessee Healthcare Provider Stability Act (T.C.A. §63-1-148) imposes specific requirements on physician non-competes.
- •At-will employment
- •No state-mandated paid sick leave
- •Healthcare Provider Stability Act: physician non-competes max 2 years and 10-mile radius (or county) — Verify
- •TN minimum wage at federal $7.25/hour
Official resources
Bookmark these official agency portals for Tennessee entity formation, tax registration, and medical board information.
Looking for Tennessee licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Tennessee.
View Tennessee licensing guide →Get the complete practice startup guide
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