Determine your business structure. For most home businesses, the easiest type to set up business is a sole proprietorship. This type of business does not require additional documents and uses the owner 's personal information to identify it to the Internal Revenue Service. However, the disadvantage is that the owner takes all the business risk and risk losing everything in case of dispute or financial crisis. Other types of cases require the filing of registration documents and include limited liability companies, partnerships and body S.

List your business with the local municipality where you live. This process is also known as obtaining a license. Although the process varies from city to city within Tennessee, the general idea is to let the city know that you run a business for tax purposes. The State of Tennessee does not currently assess a tax on personal income; income tax, however, companies are evaluated according to the type of business they are (retail, Internet, or the contractor, for example) and whether or not the company must report and pay sales tax. The city 's tax administration will help you navigate through the documents so that you are properly registered and licensed to conduct business in the city or town where you live.

Raise capital. Money is always a problem when it comes to starting a business. You 're going to need money to buy supplies and set up the necessary services to pay for advertising, and get by until the business begins to generate a profit. You can obtain these funds in several ways. One of the most common is to apply for loans to small business with the federal government. You can learn how to apply for SBA loans here: http://www.sba.gov.

Set aside a workspace in your home. Now that you have registered your business, you need to book a place in your home specifically for your company. In this space, you must ensure that you have all the necessary features, such as Internet access, phone, fax, office supplies and all other raw materials it needs to conduct business. If you don 't have access to these services in your workplace, contact the service provider (s) needed to have them installed.

Begin marketing. The most important thing any small home business needs is customers. You must actively solicit your customer base, either through direct advertising, word of mouth or by mail / advertising campaigns. Visit the places where your customers can spend time and place flyers there. Recruit family members and friends of your spread the word. You can design a simple website to attract more customers.