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

Every city handles business licensing & operations a little differently. In Memphis, Tennessee, there are 7 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.

Tattoo & Body Modification

Memphis requires anyone operating a tattoo establishment, or working as a tattoo operator or artist, to hold a health department permit under City Code § 6-76-2, backed by a sterilization-training exam, quarterly inspections, and an outright ban on tattooing anyone under 18 under § 6-76-9. Permits cost $50.00 a year and expire every December 31st.

Key details: Permit required: Health officer (§ 6-76-2). Sterilization exam: Prerequisite to permit (§ 6-76-4). Annual fee: $50.00, expires Dec. 31 (§ 6-76-5). Minimum age tattooed: 18, no exceptions (§ 6-76-9). Inspections: At least quarterly (§ 6-76-8).

Operating or tattooing without a permit, tattooing a minor, or continuing to operate after a permit is suspended or revoked is punishable under Section 6-76-12 by the citywide general penalty, Section 1-24-1. The health officer must revoke the permit of anyone convicted twice within a 24-month period of violating Chapter 6-76's requirements.

Adult Entertainment

Memphis requires a police-issued permit before operating any sexually oriented business, adult bookstores, cabarets, theaters, escort agencies and more, under City Code § 6-72-4, and bans locating one within 1,500 feet of a church, school, park, residential district boundary or another sexually oriented business under § 6-72-8. The $500 annual permit can be denied, suspended or revoked.

Key details: Permit required: Director of police services (§ 6-72-4). Annual fee: $500.00 (§ 6-72-4.C). Employee permit: $15.00, 3-year term. Buffer: 1,500 ft from churches, schools, parks, homes. Nonconforming grandfather: Pre-July 1, 1990 uses, 1 year to conform.

Operating a sexually oriented business without a valid permit, operating within the 1,500-foot buffers of Section 6-72-8, or violating a permit condition is an offense under Chapter 6-72, subject to permit suspension for up to 30 days or revocation for five years under Section 6-72-5, in addition to prosecution under the citywide general penalty, Section 1-24-1.

This is not one of those rules that cities tend to ignore. Memphis actively enforces its adult entertainment requirements.

Massage Establishments

Memphis requires anyone operating a massage institute, bathhouse, or working as a massage operator or bather to hold a permit issued by the city treasurer under Code of Ordinances Ch. 6-48. Applicants undergo a police services background check, and permits carry health, clothing, hours, and conduct conditions.

Key details: Permit required: Massage operator, bather, institute, bathhouse (Sec. 6-48-3). Issuing office: City treasurer, background check by police services. Institute/bathhouse fee: $5.00 annually. Operator fee: $2.00 annually. Permit term: 12 months, expires each July 1.

Permits are non-transferable and the director of police services may suspend or revoke one for violating the chapter or its rules, or for permittee/employee misconduct, after notice and a hearing (Sec. 6-48-9B). A permittee is liable for violations committed by agents or employees under his or her supervision (Sec. 6-48-15). Operating without a permit, past the 10:00 p.m. curfew, or in violation of the clothing, health-inspection, or under-18 rules constitutes a chapter violation subject to the city's general penalty provisions and permit revocation.

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

Pawnbrokers

Memphis requires every pawnbroker to hold the state license under T.C.A. § 45-6-102 before opening, per City Code § 6-60-2, then layers on local rules: fixed business hours, a Sunday closure, a numbered transaction ledger delivered daily to police, and an interest cap of $6.00 per $100.00 per year.

Key details: State license: T.C.A. § 45-6-102, per § 6-60-2. Hours: 8 a.m.–6/7 p.m.; closed Sundays (§ 6-60-5). Interest cap: $6.00 per $100.00 per year (§ 6-60-13). Daily records: Delivered to police by 10 a.m. (§ 6-60-10). Redemption period: 50 days past maturity (§ 6-60-14).

Operating without the state-mandated license, keeping open outside permitted hours or on Sunday, taking prohibited pledges, or failing to deliver the daily transaction record to police all violate Chapter 6-60 and are prosecuted under the citywide general penalty, Section 1-24-1: a fine of up to $50.00 set at the city judge's discretion, plus an automatic penalty of up to $200.00 per code section, with each day of a continuing violation charged as a separate offense.

Towing Companies

Memphis lets a private property owner tow a vehicle without the driver's consent only if warning signage is posted at every entrance and the towing company holds express written, and often notarized, authorization from the owner or a designated agent on file with the city permits office.

Key details: Sign size required: At least 18 in. by 12 in.. Lettering size: Minimum 1 inch tall. Authorization: Written, from owner/agent, notarized. Cross-referenced statutes: T.C.A. §§ 55-16-112, 66-28-518. Police notice: Required before non-consent tow.

Operating outside these requirements is grounds for license discipline under Sec. 6-88-50 and 6-88-51. The permits administrator can hold a hearing on 48 hours' notice and suspend a wrecker service license or driver's permit for up to ten days, a decision appealable to the transportation commission within five days. For more serious violations, the transportation commission can impose fines, longer suspensions, or outright revocation, and a revoked operator cannot reapply for a license for one year.

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

Secondhand Dealers

Memphis regulates secondhand dealers through mandatory daily police reporting: City Code § 6-68-3 requires every dealer to deliver police a description of each item bought the day before, by 9:00 a.m., and § 6-68-1 restricts business hours to 6:00 a.m.–8:00 p.m. (11:00 p.m. on Saturdays). A 48-hour resale hold and a $1.00-per-card fee also apply.

Key details: Hours: 6 a.m.–8 p.m.; 11 p.m. Saturdays (§ 6-68-1). Daily police report: Due by 9 a.m. (§ 6-68-3). Resale hold: 48 hours (§ 6-68-2). Minimum seller age: 16, with parental consent (§ 6-68-4). Info card fee: $1.00 each (§ 6-68-12).

Opening outside permitted hours, disposing of purchased goods before the 48-hour hold expires, buying from an underage seller, or failing to file the daily police report or information cards required by Chapter 6-68 is enforced under the citywide general penalty, Section 1-24-1: up to a $50.00 fine per violation plus an automatic penalty of up to $200.00 per code section, with continuing violations charged separately each day.

Tobacco Retail License

Memphis and Shelby County zoning bars new smoke shops from locating within 1,320 feet of any school, place of worship, day care facility, or park, measured parcel to parcel. Vapor shops open before the November 15, 2016 effective date of ZTA 16-1 are grandfathered and can expand, modify, or relocate within the same site despite the buffer.

Key details: Governing section: UDC § 2.6.3.S, Smoke Shops. Buffer distance: 1,320 feet from school, church, day care, park. Measured: Parcel to parcel, not building to building. Grandfather cutoff: Vapor shops open before Nov. 15, 2016. Applies to: City of Memphis and unincorporated Shelby County.

A smoke shop sited inside the 1,320-foot buffer without qualifying for the vapor-shop exemption can be denied a certificate of occupancy or ordered to relocate by the Zoning Administrator. Operating without the required separation, or expanding a non-exempt shop into the buffer zone, exposes the business to zoning enforcement action and possible closure until the site meets the distance standard.

This is not one of those rules that cities tend to ignore. Memphis actively enforces its tobacco retail license requirements.

The Bottom Line

Memphis is tougher than many cities when it comes to business licensing & operations. Out of the 7 rules covered here, 4 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.