Best Places for Startups in Tennessee

Tennessee is one of the easier states in the South to launch a company: there is no state tax on wages, a statewide network of entrepreneur centers backed by Launch Tennessee, and startup programs in Memphis, Nashville, Chattanooga, Knoxville and Johnson City. The best places for startups in Tennessee are not only the big cities, though. Smaller places such as Lebanon, Crossville and the suburbs around Memphis offer lower overhead with a big market a short drive away. This guide, updated for 2026, compares ten cities and six small towns, the support each one has for founders, and the tax basics to know before you register. When you are ready to relocate your home or office, Spyder Moving and Storage TN can move both.

Why do founders choose Tennessee to start a business?

Most founders start with taxes and support. Here is what applies statewide:

• No tax on wages. Tennessee has no personal income tax on salaries, and the Hall income tax on interest and dividends was repealed for tax periods starting on or after January 1, 2021.
• Franchise and excise tax. Corporations, LLCs, limited partnerships and business trusts pay an excise tax of 6.5% of Tennessee taxable income and a franchise tax of 0.25% of Tennessee net worth, with a $100 minimum franchise tax.
• Sales tax. The state rate is 7%, and local rates add up to 2.75%, depending on the county and city.
• Support network. Launch Tennessee is a nonprofit public-private partnership that works with the Tennessee Department of Economic and Community Development, runs the InvestTN venture program and partners with regional entrepreneur centers across the state.

The table compares the ten cities in this guide by county, size and the nearest startup support you can walk into.

Nashville’s figure is the Census count for the Nashville-Davidson metropolitan government (balance).

Which cities are the best places for startups in Tennessee?

Each city below has something specific for founders: an accelerator, a university pipeline, a transportation advantage or simply low costs close to a large market.

Memphis

Memphis is the startup center of West Tennessee and the Mid-South. Its anchor is Epicenter, which describes itself as the innovation hub of the Delta. Epicenter runs programs for founders at different stages, including Epicenter Launch for early startups, a Capital Readiness Accelerator for teams preparing to raise money, the ZeroTo510 medical device program, and industry challenges in logistics and medical device operations. That mix fits the local economy: FedEx is headquartered in Memphis, and the city’s role as a distribution hub gives logistics, supply chain and health care startups real customers nearby. If you are searching for Memphis start ups to join or a place to launch your own, Epicenter’s events calendar is the fastest way into the community. Founders relocating a household or a small office can book Spyder’s Memphis movers, who work out of the company’s office on New Getwell Road.

Nashville

Nashville is the state capital and, by the 2020 Census, its largest city. Founders here have the deepest support system in Tennessee. The Nashville Entrepreneur Center runs accelerator tracks from idea stage (PreFlight) through launch (TakeOff) and growth (InFlight), plus Project Healthcare, which connects founders with the health systems that buy their products. Health care is the city’s signature industry, with HCA Healthcare headquartered in Nashville, and universities such as Vanderbilt, Belmont and Tennessee State supply a steady talent pool. The trade-off is cost: housing and office space are typically more expensive than in the smaller cities on this list. For a founder who needs investors, mentors and early customers in one place, Nashville is still the first stop. If you are bringing a family or a team, Spyder Moving and Storage’s Tennessee movers handle moves into Middle Tennessee from anywhere in the state or out of state.

Chattanooga

Chattanooga built its startup reputation on infrastructure. EPB, the city-owned electric utility, offers fiber internet with symmetrical speeds of up to 25 gigabits per second to every home and business in its roughly 600-square-mile service area. The Company Lab (CO.LAB) is the local accelerator, and it focuses on startups that change how people, goods, energy and data move. CO.LAB matches each cohort company with a corporate partner to explore a real-world pilot, and its partner list includes TVA, Volkswagen, EPB and Oak Ridge National Laboratory. For freight tech, electric vehicle, grid and mobility startups, few cities in the Southeast offer that kind of access. Chattanooga also sits on I-75 and I-24, which helps logistics companies reach Atlanta, Nashville and Knoxville.

Johnson City

Johnson City is Northeast Tennessee’s startup base and the reason many founders search for startups in Johnson City. Its anchor is the ETSU Innovation Lab, a high-tech business incubator at East Tennessee State University that helps entrepreneurs take emerging technologies from concept to commercialization. Members get office space, wet and dry lab space, meeting rooms and an entrepreneur resource center, and the lab holds an International Soft Landings designation for foreign companies entering the U.S. market. In 2025, Sync Space and the ETSU Research Corporation launched Accelerate Appalachia, an accelerator with a micro venture fund for regional companies that already have traction. East Tennessee State University, including its medical and health sciences programs, also gives local startups a pipeline of graduates.

Jackson

Jackson is the business center between Memphis and Nashville, on I-40 in Madison County. For a small or first-time business, the Tennessee Small Business Development Center at Jackson State Community College offers free, confidential one-on-one advising and no-cost workshops. The city is also home to theCO, the Entrepreneur Development Center for Southwest Tennessee, which has worked with Launch Tennessee as a regional accelerator. Jackson suits founders who want to serve West Tennessee customers from a central location without big-city rents. Spyder Moving and Storage also serves the area, so if you are relocating, book Spyder’s Jackson movers for the household or the office.

Collierville

Collierville is a town of 51,324 people (2020 Census) in eastern Shelby County, known for its historic Town Square. For a startup, its main advantage is location: you live and work in a quieter suburb and drive into Memphis for Epicenter events, investors and clients. The town works well for consultancies, professional services, health care practices and e-commerce companies that need space for a small team rather than a downtown address. Families moving with a founder also tend to like the town’s own school district. Spyder’s Collierville movers handle local moves within Shelby County as well as relocations from out of state.

Lebanon

Lebanon, the county seat of Wilson County, is about 25 miles east of Nashville. It had 38,431 residents in the 2020 Census, and it is home to Cracker Barrel’s headquarters and Cumberland University. The biggest advantage for a founder is access: Lebanon Station is the starting point of the WeGo Star commuter train, which stops in Mt. Juliet and Donelson before reaching Riverfront Station in downtown Nashville. That makes it practical to run a company from Lebanon and still attend Nashville Entrepreneur Center programs and investor meetings. If you are weighing a job offer rather than a startup, read whether you should move to Tennessee for a job.

Greeneville

Greeneville, the seat of Greene County in Northeast Tennessee, had 15,479 residents in the 2020 Census. It is a small, historic town with downtown home to the Andrew Johnson National Historic Site, and its costs are lower than in larger cities. Founders here use the startup resources in neighboring Washington County, including the ETSU Innovation Lab and Accelerate Appalachia in Johnson City. Greeneville fits makers, manufacturers’ suppliers and online businesses that do not need a big-city address.

Crossville

Crossville is the seat of Cumberland County on the Cumberland Plateau, along I-40 between Nashville and Knoxville. It had 12,071 residents in the 2020 Census and is widely known as the “Golf Capital of Tennessee.” Tourism, retirement communities such as Fairfield Glade and interstate access make it a good fit for hospitality, home services and logistics businesses. Startup support comes from The Biz Foundry in Cookeville, the Upper Cumberland’s business accelerator, which serves 14 counties, including Cumberland County. If you are moving a household from West Tennessee to the Plateau, Spyder’s long-distance movers based in Memphis can plan the move.

Somerville

Somerville is the seat of Fayette County, east of Memphis, and had 3,415 residents in the 2020 Census. It has a small, historic downtown and a quiet, rural feel, which means low overhead for a small business and a community where word of mouth travels fast. Before you open, check with the town and Fayette County about local business licenses, sign permits and building permits for any renovation, and register with the Tennessee Department of Revenue. Somerville suits service businesses, retail and trades that serve the eastern side of the Memphis metro. Spyder’s Somerville movers can handle the move.

Which small towns near Memphis work for young entrepreneurs?

Not every founder wants to launch downtown. Several small towns around Memphis combine low overhead, local customers who support new businesses, and a short drive to the Memphis market, talent pool and FedEx hub. Founders who settle in places like Atoka or Oakland get suburban costs and quick access to Epicenter’s programs in the city.

Atoka

Atoka, in Tipton County north of Memphis, had 10,008 residents in the 2020 Census. It keeps a small-town feel, and a lower cost of living than the inner suburbs helps keep a first-year budget manageable. Memphis is close enough for client meetings and networking without paying the city’s rents. Spyder’s Atoka TN movers can move your home and office together.

Oakland

Oakland, in Fayette County east of Memphis, had 8,936 residents in the 2020 Census. It sits on US-64 between Memphis and Somerville, offers more space and lower overhead than the inner suburbs, and has local customers for service businesses, restaurants and retail. Memphis is a short drive away. Oakland TN movers from Spyder can set up your office and home in one trip.

Lakeland

Lakeland is a city of 13,904 people (2020 Census) in eastern Shelby County, along I-40 east of Memphis. It is mostly residential, so it works best as a home base for founders who run a remote-first or home-based company and drive into Memphis for meetings. The city has its own Industrial Development Board and has used tax-increment financing districts to attract commercial development around the I-40 and Canada Road interchange, so office and retail options are growing. Families also like that Lakeland runs its own school system. If you are relocating, Spyder’s Lakeland movers can plan the move.

Brighton

Brighton is a small rural town in Tipton County with 2,888 residents (2020 Census). It is quiet and surrounded by open countryside. For a startup, the advantage is the community: in a town this size a new business gets noticed quickly, and living costs are low. Brighton fits founders who work remotely or sell online and only need Memphis occasionally.

Brunswick

Brunswick is an unincorporated, close-knit community in northeast Shelby County with a handful of local restaurants, shops and services. For a young entrepreneur it offers the same formula as the rest of this list: low cost of living, neighbors who support local businesses, and quick access to Memphis for a larger talent pool and customer base.

Cordova

Cordova, on the eastern edge of Memphis, is the most built-up option in this group, with plenty of parks and a full range of shopping, dining and entertainment. Corporate offices in the area create networking and B2B opportunities, and the location inside the Memphis metro keeps clients and employees within easy reach. It suits founders who want suburban convenience without leaving the city. Movers in Cordova TN from Spyder can handle both the household and the office.

What should you check before you register a startup in Tennessee?

Choosing the city is only the first step. Before you sign a lease or move, go through this short list:

1. Pick your entity. LLCs and corporations register with the Tennessee Secretary of State and then owe franchise and excise tax, while sole proprietors do not.
2. Register for state taxes. Sign up with the Department of Revenue for sales tax if you sell taxable goods or services, and for business tax where it applies.
3. Get local licenses. Cities and counties handle business licenses, zoning, sign permits and building permits, so call the town before you renovate.
4. Join the regional entrepreneur center. Epicenter, the Nashville Entrepreneur Center, CO.LAB, the Knoxville Entrepreneur Center and the ETSU Innovation Lab all run events where you meet mentors and investors.

The Tennessee Department of Revenue lists the current franchise and excise due dates and rates, including quarterly estimated payment rules. Founders near Memphis can also compare the Mississippi cities for new small businesses just across the state line, such as Olive Branch.

Where will your Tennessee startup grow best?

There is no single right answer, but the pattern is clear. Choose Nashville or Memphis if you need investors, accelerators and customers in one place; Chattanooga if your product depends on mobility, logistics or fast fiber; and Johnson City if you are commercializing research. Lebanon, Collierville and the small towns around Memphis work when you want lower costs within a short drive of a big market, while Crossville, Greeneville and Somerville suit lifestyle and local businesses. Going through the best places for startups in Tennessee with your own budget and industry in mind is the fastest way to a shortlist. When you have picked your city, Spyder Moving and Storage can move your home, office equipment and inventory with its own licensed crews and trucks. Request a free moving estimate and start building your business in Tennessee.