How to start a pet sitting business in Tennessee (2026)

1Pet sitting demand in Tennessee

About 62% of Tennessee households own at least one pet. Nashville's growth brought many newcomers without family nearby, and its music and touring workforce can be gone for weeks at a time. Concerts and event weekends at Bridgestone Arena, Nissan Stadium and Broadway venues keep hospitality workers busy at odd hours. In Memphis, hospital staff and shift workers around the FedEx hub need visits at unusual times. Williamson County families travel often and pay well for overnights, and Knoxville and Chattanooga clients head out for hiking, lake and Smoky Mountains weekends.

The biggest markets: Nashville, Franklin / Brentwood (Williamson County), Memphis, Knoxville / Chattanooga.

2Can you board pets at home in Tennessee?

Tennessee has no statewide license for pet sitters or home boarding that we found, so sitting in a client's home is unlicensed at the state level beyond the gross-receipts business license. Boarding at your own home is a local question. Nashville issues home occupation permits through Metro Codes, which require the home to be your primary residence and written notice to adjacent neighbors, so ask the zoning help desk whether boarding fits before you advertise it. Knoxville's code limits a household to four dogs and cats over six months old unless the city animal board grants a kennel or boarding facility permit. Some suburbs are stricter: Collierville has barred kennel licenses in residential zones. Check your lease or HOA as well.

3Set up your business in Tennessee

• File an LLC. $300 one-time filing with the Tennessee Secretary of State (Business Services). It separates your personal assets from the business, which matters when you hold clients' keys.
• Recurring entity cost: $400/year, $300 Secretary of State annual report fee (for up to six members; $50 more per member above six, capped at $3,000) plus the $100 minimum franchise tax owed to the Department of Revenue.
• Get an EIN from the IRS. It is free and takes about 10 minutes online.
• City or county business license: Tennessee has no dog walker license, but it does have a gross-receipts business license. If you gross more than $3,000 and less than $100,000 a year, get a $15 minimal activity license each year from your county clerk (and your city clerk if your city has a business tax). At $100,000 or more you register with the Department of Revenue and file business tax returns. Home boarding is governed by city and county zoning, and some Tennessee cities require a kennel or boarding permit above a set number of dogs, so check locally before you host.

Tennessee-specific: Unlike most states, Tennessee taxes a single-member LLC owned by a person as its own entity for state purposes. Every LLC files a franchise and excise tax return: franchise tax is 0.25% of net worth (minimum $100, even if the LLC is inactive) and excise tax is 6.5% of the LLC's Tennessee taxable income. Sole proprietors don't owe franchise and excise tax, so some new walkers start as a sole proprietor with good insurance and form the LLC once revenue justifies the cost. Ask an accountant which makes sense for you.

4Taxes for Tennessee pet sitters

Sales tax: Tennessee taxes only the services listed in its sales tax law, and dog walking and pet sitting are not on that list. The Department of Revenue says pet boarding is not subject to sales tax, and grooming on its own is not either. The surprise is bathing: Tennessee taxes animal bathing as cleaning of property, so a bath is taxed at the state 7% plus the local rate (up to 2.75%). If you sell a bath and grooming together for one price, the whole charge is taxable, so list them separately. Check with the Department of Revenue if you add baths to walks or boarding stays.

State income tax: None, a real take-home advantage.

Other taxes worth knowing: No income tax on wages or self-employment income (the Hall tax on interest and dividends ended in 2021). But LLCs owe franchise and excise tax every year, and once gross receipts reach $100,000 you register for and pay the state business tax (plus city business tax in cities that have one). The Department of Revenue confirms pet grooming, bathing and boarding are subject to business tax.

Official source: Tennessee Department of Revenue Notice 18-03 (animal bathing and grooming) →

5Insurance and bonding in Tennessee

Pet sitting policies from Pet Sitters International and Pet Sitters Associates cover pet injury under care, custody and control, and most offer lost-key coverage. Ask about non-owned auto coverage if you drive pets to the vet. Spring brings severe storms and tornado warnings, especially in Middle Tennessee, so agree with each client on where pets shelter in the house and what you do if a warning hits during a visit. Add a bond once you hire sitters who hold keys.

• General liability with care, custody and control covers harm to the pets in your care and damage in the client's home.
• Key and lockout coverage pays to rekey a home if you lose a client's key.
• A bond covers theft claims and is a cheap way to reassure new clients.

Workers' comp once you hire: Outside construction, Tennessee requires workers' compensation once you have five or more employees. Part-time workers, minors, and family members who work in the business all count toward the five, but you (as a sole proprietor or LLC member) do not. Below five it is optional, though one injured sitter without coverage can cost more than years of premiums. The Bureau uses a seven-factor test, mostly about who controls the work, so paying someone on a 1099 does not keep them out of your count. Tennessee Bureau of Workers' Compensation →

6What to charge in Tennessee

Typical Tennessee bands for 2026:

• Drop-in visit (30 min): $18 to $30
• Overnight in the client's home: $55 to $95 per night
• Additional pet: +$5-10 per visit

Overnights and peak dates: Tennessee overnights run about $55-95 a night, with Nashville and Williamson County toward the top. Peak dates are Thanksgiving, Christmas, spring break and summer, plus Nashville event weeks like CMA Fest in June. Touring and traveling clients may book a week or more at a time, so set a written multi-night rate. Add a holiday surcharge for peak dates rather than discounting long stays.

Check your numbers with the pet sitter rates calculator and the holiday rate calculator.

7Hiring sitters in Tennessee

Since January 1, 2020, Tennessee uses the IRS 20-factor test for unemployment, wage and hour, and OSHA purposes, replacing the stricter ABC test. Workers' comp uses its own seven-factor test focused on control. The 20-factor test is easier to pass than ABC, but a sitter whose schedule, route, and rate you set is still likely an employee. A 1099 alone settles nothing.

If the Department of Labor reclassifies your 1099 sitters under the 20-factor test, you owe back unemployment premiums plus penalties and interest. Reclassification can also push your headcount to five, which means you needed workers' comp all along, and an injured sitter's claim would be yours to pay.

8FAQ