Memphis's Business Licensing & Operations: The Rules That Matter

Every city handles business licensing & operations a little differently. In Memphis, Tennessee, there are 5 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Tobacco Retail License

Memphis tobacco retailers must hold a Tennessee Department of Revenue tobacco license and remit Shelby County tobacco tax. The city issues a standard business license under Chapter 9 — no separate flavor or vape ordinance applies because state law preempts local tobacco regulation.

Key details: State license: TN Dept. of Revenue required. Local license: Memphis Ch. 9 business license. Min age: 21 (federal T21 + TN). Local flavor ban: Preempted by TCA.

Selling tobacco without state license risks $500 daily fines, license revocation, and criminal misdemeanor charges under TCA 67-4-1015.

Massage Establishments

Massage therapists in Memphis must hold a Tennessee Massage Licensure Board license, and establishments need a Memphis business license plus zoning approval. The city restricts adult-oriented massage parlors through zoning to prevent illicit operations near schools and residences.

Key details: State agency: TN Massage Licensure Board. Training: 500 hours required. Exam: MBLEx. Local zoning: Memphis-Shelby UDC restrictions.

Operating without state license is a Class B misdemeanor; unlicensed establishments face Memphis citations up to $500 plus closure orders.

Pawnbrokers

Memphis pawnbrokers must register under Tennessee Code Title 45 Chapter 6 with the Tennessee Department of Financial Institutions and report all transactions daily to the Memphis Police Department through LEADS Online. Items must be held 30 days before resale to allow recovery of stolen property.

Key details: State law: TCA 45-6-201. Reporting: LEADS Online daily. Hold period: 30 days minimum. Interest cap: 2% per month.

Failing to report transactions, accepting stolen goods knowingly, or violating hold periods triggers state license revocation plus Memphis misdemeanor charges and forfeiture.

Compared to other cities, Memphis takes a harder line on pawnbrokers. The enforcement and penalty structure reflects that.

Towing Companies

Memphis tow operators need a city wrecker license under Memphis Code Chapter 9 and must post rate schedules. Nonconsensual tows from private property require posted signage, and storage fees are capped. MPD maintains a rotation list for police-initiated tows.

Key details: Permit: Memphis wrecker license. Sign rule: Posted at lot entrances. Response time: 30 min for MPD calls. Release access: 24 hours daily.

Unauthorized tows, missing signage, or excessive fees can void the tow, force fee refunds, and result in license suspension up to 90 days.

Secondhand Dealers

Memphis pawnbrokers are licensed under Memphis Code Chapter 6-60 and must hold a Shelby County Pawnbroker License from the County Clerk. Dealers in scrap jewelry and precious metals must register with the Memphis Police Chief and Shelby County Sheriff under Tenn. Code Ann. §38-1-201, keep daily transaction logs, and observe a 20-day hold before resale or alteration.

Key details: Pawnbroker Code: Memphis Code Ch. 6-60. State Pawn Act: Tenn. Code Ann. Title 45, Ch. 6. Precious-Metal Registration: Tenn. Code §38-1-201. Hold Period: 20 days (§38-1-202). Daily Log: To MPD chief & Sheriff (§38-1-203).

Operating a pawnshop without a Shelby County Pawnbroker License, dealing in precious metals without registering with the Memphis Police chief and Sheriff, falsifying the daily log, or selling within the 20-day hold is enforceable by criminal citation under Tenn. Code Ann. §38-1-205 and by license suspension or revocation. Pawnbroker license violations may also lead to bond forfeiture.

This is one of the stricter rules in Memphis's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

The Bottom Line

Memphis is tougher than many cities when it comes to business licensing & operations. Out of the 5 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Memphis, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Memphis's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.