How Much Does It Cost to Start a Business in Knoxville, TN?

Population: 190,740 | Cost of living: 88.2% | Sales tax: 9.25% | Min wage: $7.25

Startup Costs by Industry in Knoxville

Industry Estimated Startup Cost National Average Local Difference
Accounting Firm $15,000 - $61,000 $15,000 - $60,000 +1%
Acupuncture Practice $7,000 - $42,000 $10,000 - $60,000 -30%
Affiliate Marketing Business $2,000 - $12,000 $500 - $5,000 +155%
After-School Program $17,000 - $98,000 $20,000 - $100,000 -4%
AI Consulting Business $6,000 - $48,000 $2,000 - $50,000 +4%
Airbnb Rental Business $9,000 - $50,000 $10,000 - $50,000 -2%
Amazon FBA Business $7,000 - $64,000 $5,000 - $50,000 +29%
App Development $15,000 - $97,000 $15,000 - $100,000 -3%
Aquaponics Farm $16,000 - $129,000 $20,000 - $150,000 -15%
Arcade & Gaming Center $79,000 - $462,000 $100,000 - $500,000 -10%
ATM Business $4,000 - $53,000 $3,000 - $30,000 +73%
Auto Detailing $8,000 - $61,000 $5,000 - $75,000 -14%
Auto Repair Shop $50,000 - $259,000 $50,000 - $300,000 -12%
Axe Throwing Venue $35,000 - $180,000 $50,000 - $200,000 -14%
Bakery $48,000 - $208,000 $60,000 - $250,000 -17%
Bar $76,000 - $306,000 $100,000 - $400,000 -24%
Barbershop $35,000 - $131,000 $50,000 - $150,000 -17%
Beauty Supply Store $18,000 - $88,000 $30,000 - $150,000 -41%
Bed & Breakfast $85,000 - $422,000 $100,000 - $500,000 -16%
Beekeeping Business $11,000 - $54,000 $10,000 - $50,000 +8%
Bike Shop $18,000 - $115,000 $30,000 - $200,000 -42%
Auto Body Shop $29,000 - $169,000 $50,000 - $300,000 -43%
Bookkeeping Service $3,000 - $17,000 $2,000 - $10,000 +67%
Bookstore $38,000 - $156,000 $40,000 - $200,000 -19%
Boutique $40,000 - $198,000 $50,000 - $250,000 -21%
Bowling Alley $366,000 - $2,270,000 $500,000 - $3,000,000 -25%
Brewery $177,000 - $997,000 $250,000 - $1,500,000 -33%
Campground $85,000 - $807,000 $100,000 - $1,000,000 -19%
Candy Shop $18,000 - $92,000 $20,000 - $100,000 -8%
Car Rental Business $50,000 - $472,000 $50,000 - $500,000 -5%
Car Wash $69,000 - $444,000 $75,000 - $500,000 -11%
Carpentry Business $18,000 - $91,000 $15,000 - $75,000 +21%
Carpet Cleaning Business $4,000 - $26,000 $5,000 - $30,000 -14%
Catering Business $23,000 - $119,000 $20,000 - $125,000 -2%
Chiropractic $76,000 - $274,000 $100,000 - $350,000 -22%
Christmas Tree Farm $22,000 - $126,000 $20,000 - $100,000 +23%
Cleaning Service $6,000 - $44,000 $5,000 - $50,000 -9%
Clothing Store $15,000 - $88,000 $25,000 - $150,000 -41%
Coding Bootcamp $7,000 - $63,000 $10,000 - $100,000 -36%
Coffee Roastery $20,000 - $245,000 $20,000 - $300,000 -17%
Coffee Shop $54,000 - $213,000 $80,000 - $300,000 -30%
Computer Repair Business $4,000 - $26,000 $5,000 - $30,000 -14%
Concrete Business $29,000 - $152,000 $30,000 - $150,000 +1%
Construction Company $57,000 - $487,000 $50,000 - $500,000 -1%
Consulting Business $9,000 - $62,000 $5,000 - $50,000 +29%
Convenience Store $39,000 - $253,000 $50,000 - $350,000 -27%
Courier & Delivery Service $7,000 - $54,000 $5,000 - $50,000 +11%
Coworking Space $57,000 - $276,000 $100,000 - $500,000 -45%
Cybersecurity Firm $7,000 - $63,000 $10,000 - $100,000 -36%
Dance Studio $24,000 - $111,000 $30,000 - $150,000 -25%
Daycare $38,000 - $155,000 $50,000 - $300,000 -45%
Demolition Company $60,000 - $279,000 $50,000 - $250,000 +13%
Dental Practice $286,000 - $706,000 $350,000 - $750,000 -10%
Digital Marketing $9,000 - $52,000 $5,000 - $50,000 +11%
Distillery $74,000 - $674,000 $100,000 - $1,000,000 -32%
Dog Daycare $28,000 - $193,000 $40,000 - $350,000 -43%
Dog Grooming Business $9,000 - $50,000 $10,000 - $50,000 -2%
Dog Training Business $3,000 - $23,000 $2,000 - $20,000 +18%
Dog Walking Business $2,000 - $10,000 $500 - $5,000 +118%
Donut Shop $39,000 - $189,000 $50,000 - $250,000 -24%
Driving School $23,000 - $98,000 $25,000 - $100,000 -3%
Drone Business $4,000 - $39,000 $3,000 - $50,000 -19%
Dropshipping Business $2,000 - $17,000 $500 - $10,000 +81%
Electrical $17,000 - $91,000 $15,000 - $100,000 -6%
Embroidery & Custom Apparel $7,000 - $37,000 $10,000 - $50,000 -27%
Escape Room $39,000 - $252,000 $50,000 - $300,000 -17%
Etsy Shop $2,000 - $11,000 $500 - $5,000 +136%
Event Planning Business $7,000 - $36,000 $5,000 - $30,000 +23%
Excavation Business $85,000 - $382,000 $80,000 - $350,000 +9%
Farm $40,000 - $431,000 $50,000 - $500,000 -14%
Fast Food Franchise $112,000 - $1,632,000 $100,000 - $2,500,000 -33%
Fencing Business $7,000 - $37,000 $10,000 - $50,000 -27%
Financial Advisory Practice $7,000 - $37,000 $10,000 - $50,000 -27%
Fitness Studio $29,000 - $169,000 $50,000 - $300,000 -43%
Flooring Business $12,000 - $73,000 $10,000 - $60,000 +21%
Flower Shop $27,000 - $142,000 $30,000 - $175,000 -18%
Food Delivery Service $14,000 - $80,000 $10,000 - $75,000 +11%
Food Truck $56,000 - $212,000 $50,000 - $200,000 +7%
Franchise Business $34,000 - $889,000 $20,000 - $1,000,000 -10%
Garage Door Business $7,000 - $37,000 $10,000 - $50,000 -27%
Gas Station $141,000 - $1,081,000 $250,000 - $2,000,000 -46%
General Contractor $32,000 - $192,000 $30,000 - $200,000 -3%
Ghost Kitchen $18,000 - $92,000 $20,000 - $100,000 -8%
Gift Shop $27,000 - $127,000 $30,000 - $150,000 -14%
Glamping Business $12,000 - $115,000 $20,000 - $200,000 -42%
Graphic Design Business $6,000 - $26,000 $3,000 - $20,000 +39%
Greenhouse Business $23,000 - $183,000 $30,000 - $200,000 -10%
Grocery Store $87,000 - $1,113,000 $80,000 - $2,000,000 -42%
Gym $74,000 - $363,000 $50,000 - $500,000 -21%
Hair Salon $49,000 - $180,000 $60,000 - $200,000 -12%
Handyman $9,000 - $46,000 $5,000 - $40,000 +22%
Home Health Care Agency $43,000 - $298,000 $40,000 - $350,000 -13%
Home Inspection Business $6,000 - $32,000 $5,000 - $25,000 +27%
Hostel $29,000 - $169,000 $50,000 - $300,000 -43%
Hotel $444,000 - $4,034,000 $500,000 - $5,000,000 -19%
HVAC $26,000 - $129,000 $20,000 - $150,000 -9%
Ice Cream Shop $46,000 - $242,000 $50,000 - $300,000 -18%
Insurance Agency $18,000 - $75,000 $20,000 - $80,000 -7%
Interior Design Business $4,000 - $26,000 $5,000 - $30,000 -14%
IT Services $15,000 - $94,000 $15,000 - $100,000 -5%
Jewelry Store $29,000 - $142,000 $50,000 - $250,000 -43%
Juice Bar $34,000 - $161,000 $40,000 - $200,000 -19%
Junk Removal Business $4,000 - $37,000 $5,000 - $50,000 -25%
Landscaping $13,000 - $78,000 $10,000 - $80,000 +1%
Language School $7,000 - $50,000 $10,000 - $75,000 -33%
Laundromat $129,000 - $695,000 $200,000 - $1,000,000 -31%
Lavender Farm $12,000 - $63,000 $20,000 - $100,000 -38%
Law Firm $36,000 - $165,000 $50,000 - $200,000 -20%
Liquor Store $74,000 - $286,000 $100,000 - $400,000 -28%
Locksmith Business $4,000 - $26,000 $5,000 - $30,000 -14%
Managed IT Services $7,000 - $50,000 $10,000 - $75,000 -33%
Manufacturing Business $55,000 - $925,000 $50,000 - $1,000,000 -7%
Marketing Agency $15,000 - $84,000 $10,000 - $75,000 +16%
Martial Arts Studio $23,000 - $114,000 $30,000 - $150,000 -24%
Masonry Business $18,000 - $95,000 $15,000 - $80,000 +19%
Massage Therapy Practice $4,000 - $37,000 $5,000 - $50,000 -25%
Meal Prep Business $15,000 - $73,000 $15,000 - $100,000 -23%
Med Spa $185,000 - $528,000 $250,000 - $600,000 -16%
Medical Practice $82,000 - $462,000 $70,000 - $500,000 -5%
Microgreens Farm $3,000 - $21,000 $2,000 - $15,000 +41%
Mini Golf Course $70,000 - $390,000 $100,000 - $500,000 -23%
Mobile Mechanic $7,000 - $52,000 $5,000 - $50,000 +7%
Moving Company $26,000 - $129,000 $20,000 - $150,000 -9%
Mushroom Farm $9,000 - $66,000 $10,000 - $80,000 -17%
Music School $22,000 - $107,000 $25,000 - $120,000 -11%
Nail Salon $31,000 - $122,000 $40,000 - $150,000 -19%
Notary Business $2,000 - $14,000 $1,000 - $5,000 +167%
Plant Nursery $23,000 - $139,000 $25,000 - $150,000 -7%
Oil Change Shop $38,000 - $204,000 $40,000 - $250,000 -17%
Online Coaching Business $3,000 - $23,000 $1,000 - $10,000 +136%
Online Store $3,000 - $44,000 $2,000 - $30,000 +47%
Painting $9,000 - $52,000 $5,000 - $50,000 +11%
Pawn Shop $29,000 - $115,000 $50,000 - $200,000 -42%
Personal Training $12,000 - $80,000 $10,000 - $100,000 -16%
Pest Control $15,000 - $77,000 $10,000 - $75,000 +8%
Pet Boarding Facility $36,000 - $305,000 $50,000 - $500,000 -38%
Pet Sitting Business $2,000 - $9,000 $500 - $5,000 +100%
Pet Store $47,000 - $237,000 $60,000 - $300,000 -21%
Pharmacy $245,000 - $1,271,000 $250,000 - $1,700,000 -22%
Phone Repair Shop $7,000 - $37,000 $10,000 - $50,000 -27%
Photography Business $12,000 - $68,000 $10,000 - $50,000 +33%
Physical Therapy Clinic $29,000 - $169,000 $50,000 - $300,000 -43%
Pilates Studio $18,000 - $88,000 $30,000 - $150,000 -41%
Pizza Shop $56,000 - $221,000 $75,000 - $300,000 -26%
Plumbing $16,000 - $88,000 $15,000 - $100,000 -10%
Podcast Studio $14,000 - $72,000 $15,000 - $80,000 -9%
Pool Construction Business $29,000 - $169,000 $50,000 - $300,000 -43%
Pool Cleaning & Service $4,000 - $24,000 $5,000 - $25,000 -7%
Preschool $61,000 - $234,000 $80,000 - $300,000 -22%
Pressure Washing Business $3,000 - $24,000 $3,000 - $20,000 +17%
Print-on-Demand Business $2,000 - $14,000 $500 - $8,000 +88%
Printing Business $43,000 - $212,000 $50,000 - $250,000 -15%
Property Management Company $5,000 - $29,000 $5,000 - $50,000 -38%
Real Estate Agency $24,000 - $101,000 $25,000 - $100,000 Avg
Real Estate Investment Business $21,000 - $349,000 $20,000 - $500,000 -29%
Recording Studio $37,000 - $176,000 $50,000 - $200,000 -15%
Restaurant $73,000 - $286,000 $75,000 - $250,000 +10%
Retail Store $36,000 - $194,000 $50,000 - $250,000 -23%
Roofing $26,000 - $137,000 $20,000 - $150,000 -4%
SaaS Company $23,000 - $194,000 $25,000 - $200,000 -4%
Security Company $15,000 - $103,000 $10,000 - $100,000 +7%
Self-Storage Facility $272,000 - $3,055,000 $500,000 - $5,000,000 -40%
Senior Care Facility $90,000 - $832,000 $100,000 - $1,500,000 -42%
SEO Agency $9,000 - $53,000 $5,000 - $50,000 +13%
Sign Shop $12,000 - $63,000 $20,000 - $100,000 -38%
Smoke Shop $18,000 - $88,000 $30,000 - $150,000 -41%
Solar Installation Business $29,000 - $169,000 $50,000 - $300,000 -43%
Spa $74,000 - $280,000 $100,000 - $350,000 -21%
Staffing Agency $30,000 - $135,000 $30,000 - $150,000 -8%
Subscription Box Business $6,000 - $56,000 $5,000 - $50,000 +13%
Swim School $29,000 - $169,000 $50,000 - $300,000 -43%
Tanning Salon $29,000 - $142,000 $50,000 - $250,000 -43%
Tattoo Shop $18,000 - $88,000 $30,000 - $150,000 -41%
Tax Preparation Business $9,000 - $43,000 $8,000 - $40,000 +8%
Tech Startup $19,000 - $142,000 $20,000 - $150,000 -5%
Thrift Store $16,000 - $90,000 $20,000 - $120,000 -24%
Tire Shop $48,000 - $229,000 $50,000 - $250,000 -8%
Tour Company $12,000 - $84,000 $10,000 - $80,000 +7%
Towing Company $50,000 - $259,000 $50,000 - $300,000 -12%
Trampoline Park $310,000 - $1,419,000 $500,000 - $2,000,000 -31%
Travel Agency $6,000 - $37,000 $5,000 - $30,000 +23%
Tree Service $10,000 - $63,000 $15,000 - $100,000 -37%
Trucking Company $21,000 - $286,000 $15,000 - $400,000 -26%
Tutoring Business $3,000 - $19,000 $2,000 - $15,000 +29%
Used Car Dealer $42,000 - $297,000 $50,000 - $350,000 -15%
Vape Shop $25,000 - $117,000 $25,000 - $150,000 -19%
Vending Machine Business $8,000 - $72,000 $5,000 - $50,000 +45%
Veterinary Clinic $234,000 - $1,351,000 $300,000 - $2,000,000 -31%
Videography Business $13,000 - $64,000 $10,000 - $60,000 +10%
Virtual Assistant Business $2,000 - $13,000 $500 - $3,000 +329%
Waste Management Business $35,000 - $421,000 $30,000 - $500,000 -14%
Web Design Business $4,000 - $30,000 $3,000 - $25,000 +21%
Wedding Planning Business $7,000 - $35,000 $5,000 - $30,000 +20%
Welding Business $19,000 - $105,000 $15,000 - $100,000 +8%
Window Cleaning Business $3,000 - $21,000 $2,000 - $15,000 +41%
Winery $68,000 - $774,000 $100,000 - $1,000,000 -23%
Yoga Studio $38,000 - $148,000 $50,000 - $200,000 -26%
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Local Market Factors in Knoxville

88.2%

Cost of Living Index

$10-$22

Commercial Rent ($/sqft/yr)

0.88x

Labor Rate Index

9.25%

Sales Tax Rate

Local Permit Fees in Knoxville

PermitCost Range
Business License $50 - $200
Food Service Permit $150 - $400
Liquor License $800 - $4,000
General Contractor License $75 - $300
Home Occupation Permit $25 - $75

About Starting a Business in Knoxville

Knoxville is the gateway to the Great Smoky Mountains, the most visited national park in the U.S., with tourism driving a robust hospitality sector. The University of Tennessee campus fuels a dynamic restaurant and entertainment scene, while the city's affordable costs and no state income tax on wages attract small business owners from higher-cost states.

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