Rules that apply to a sale in Nashville
| Topic | What the rule says | Source |
|---|---|---|
| Who may broker the sale (Tennessee law) | Tennessee is not on the commonly cited lists of states that require a license to broker a business sale, and we found no business-broker licensing statute. Anyone brokering real estate or a lease interest included in the deal still needs a Tennessee real estate license, and broker quality is unregulated - so vetting matters more. | |
| State income tax on the gain | Tennessee has no personal income tax, so an individual owner owes no state income tax on the gain (Tax Foundation 2026). C corporations may owe state corporate tax where it applies. | Tax Foundation - 2026 State Individual Income Tax Rates and Brackets |
What brokers in Nashville charge
Main Street business brokers usually charge a success fee - a percentage of the sale price paid at closing - with a minimum fee; lower-middle-market M&A advisers often use tiered percentages and may charge an upfront retainer credited against the success fee. Few brokers publish their rates. Two that do: Empire Flippers (online businesses) charges 15% of the price up to $700,000, then 8% up to $5M and 2.5% above; Flippa charges a 10% success fee plus a listing fee. Use published schedules as a benchmark when you negotiate, and compare total cost if the deal does not close. See broker vs DIY for the fee math and our broker reviews.
How to vet a broker in Nashville
- Check the license
There is no business-broker license to check in Tennessee, so ask which licenses and credentials they hold and verify any real estate license if a lease or property is involved.
- Ask for closed deals like yours
How many businesses in your industry and size range did they close in the last two years, and at what share of asking price?
- Get every fee in writing
Success-fee percentage, minimum fee, any upfront, valuation or marketing fee, and whether buyers you bring trigger the fee.
- Limit exclusivity and the tail
Listing term (6-12 months is common) and the tail period after it ends during which a sale still owes a fee.
- Know who does the work
The person who pitches you should be the person who runs your deal.
- Know your number first
Run the valuation calculator so you can judge whether a broker’s suggested price is a listing tactic.
Selling a specific kind of business
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Frequently asked questions
Do business brokers in Nashville need a license?
Tennessee is not on the commonly cited lists of states that require a license to broker a business sale, and we found no business-broker licensing statute. Anyone brokering real estate or a lease interest included in the deal still needs a Tennessee real estate license, and broker quality is unregulated - so vetting matters more.
Sources
- Business Brokerage Press - Business broker state licensing (accessed 2026-09-23)
- Tax Foundation - 2026 State Individual Income Tax Rates and Brackets (accessed 2026-09-23)
- Empire Flippers - Sell your online business (fees and requirements) (accessed 2026-09-23)
- Flippa - Pricing (accessed 2026-09-23)