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Can I offer a freemium version of my product or service in Tennessee? What are the requirements?

Requirements for Offering Freemium Version of Product or Service in Tennessee

In Tennessee, there are no specific laws or regulations that prohibit offering a freemium version of a product or service. However, businesses must comply with general business registration and tax requirements.

Business Registration

Every person desiring to engage in or conduct business as a dealer in Tennessee shall file with the commissioner an application for a “certificate of registration” for each place of business [1.1]. Any individual company or entity applying for a certificate of convenience and necessity under the Tennessee Regulatory Authority to provide competing local telecommunications services shall file a petition in accordance with the provisions of T.C.A. § 65-2-103 with the Chair of the Commission [2.3].

Tax Requirements

Businesses offering products or services in Tennessee may be subject to sales and use tax. Any person who engages in the business of furnishing any of the things or services taxable under this chapter shall apply for and obtain a certificate of registration as provided by this part [1.1].

A person does not have a nexus with Tennessee for sales and use tax purposes by reason of the relationship between the person and a commercial printer or mailer having a presence in Tennessee [1.1].

Telecommunications Service Providers

If you are a telecommunications service provider, you must comply with additional requirements. You must file a petition to obtain a certificate of convenience and necessity to provide competing local telecommunication services [2.1]. You must also comply with tariff and pricing requirements for competing local telecommunications service providers [2.2]. Additionally, you must pay any fees required by T.C.A., Title 65, Chapter 4, Part 3 [2.4].

Conclusion

In summary, there are no specific laws or regulations that prohibit offering a freemium version of a product or service in Tennessee. However, businesses must comply with general business registration and tax requirements. Telecommunications service providers must also comply with additional requirements.

Source(s):
Jurisdiction

Tennessee