How do I surrender a Tennessee liquor license when closing my restaurant?

Tennessee liquor licenses are issued by the Tennessee Alcoholic Beverage Commission (TABC). To surrender a license, submit written notification to the TABC, return the original license certificate, and pay any outstanding fees. Beer permits are issued by local municipalities and must be surrendered separately. The TABC recommends notifying them at least 30 days before the planned closure date.

What are Tennessee final paycheck requirements when closing a restaurant?

Tennessee requires employers to pay final wages on the next regular payday following the last day of work. If the employer fails to pay on time, the employee may recover the unpaid wages plus an equal amount as a penalty. Tennessee does not require immediate payment upon termination, but all earned wages must be paid by the next scheduled payday.

Does Tennessee have a state WARN Act for restaurant closures?

Tennessee does not have its own state WARN Act. Tennessee restaurant owners are only subject to the federal WARN Act, which requires 60 days advance notice for employers with 100 or more full-time employees conducting a mass layoff or plant closing. Most independent restaurants do not meet the 100-employee threshold and are not subject to WARN Act requirements.

How to Close a Restaurant in Tennessee | TABC, Tax & Dissolution Guide

Tennessee has a growing restaurant industry concentrated in Nashville, Memphis, and Knoxville, and the state's regulatory environment is generally business-friendly. But closing a restaurant in Tennessee still involves specific steps with the Tennessee Alcoholic Beverage Commission, the Department of Revenue, and the Secretary of State. Missing any of them creates liability that follows you after the doors close.

Tennessee ABC License

Restaurant liquor licenses in Tennessee are issued by the Tennessee Alcoholic Beverage Commission (TABC). Tennessee has a complex tiered licensing system -- on-premises consumption licenses vary by county and municipality, and some Tennessee counties remain dry. When you close, notify TABC in writing and surrender the license. Tennessee liquor licenses do not have the secondary market value of New Jersey or California licenses, but a license attached to a desirable Nashville or Memphis location may have value to a buyer.

Tennessee Final Paycheck Law

Tennessee requires that final wages be paid on the next regular payday following separation under Tennessee Code Annotated 50-2-103. Tennessee does not require same-day payment upon discharge. The state does not mandate vacation payout unless your written policy promises it. Tennessee does not have a state minimum wage -- the federal minimum of $7.25 applies.

Tennessee WARN Act

Tennessee does not have a state WARN Act. You are subject only to the federal WARN Act (100+ employees, 50+ layoffs within 30 days). The Tennessee Department of Labor and Workforce Development administers federal WARN Act notifications in Tennessee. Most independent restaurants do not trigger the federal threshold.

Tennessee Sales Tax

File a final sales tax return with the Tennessee Department of Revenue. Tennessee's sales tax rate is 7% statewide plus local rates that can bring the total to 9.75% in some counties -- one of the highest combined rates in the country. Cancel your sales tax account through the Tennessee Taxpayer Access Point (TNTAP) portal. The Department of Revenue may conduct a final audit of your account.

Tennessee Secretary of State Dissolution

To dissolve a Tennessee LLC, file Articles of Dissolution with the Tennessee Secretary of State. For a Tennessee corporation, file Articles of Dissolution. Tennessee requires that all state taxes be paid before dissolution is approved. The filing fee is $20 for LLCs.

The Correct Sequence

Notify employees and pay final wages on the next regular payday. File final sales tax return and cancel your TNTAP account. Notify TABC and surrender or transfer the license. Obtain tax clearance from the Department of Revenue. File dissolution with the Secretary of State. For the full cost picture, see What Does It Actually Cost to Close a Restaurant.