How to Start a Private Investigation Business in Tennessee (2026)

Last updated: February 25, 2026

Starting a private investigation business in Tennessee requires a license from the Tennessee Private Investigation and Polygraph Commission (TPIPC), which operates under the Department of Commerce and Insurance. Tennessee requires individual PI licenses, and investigators must be affiliated with a licensed PI company. The licensing process includes a background check, a state exam, and meeting age and citizenship requirements.

As someone who runs a private investigation firm, I can tell you that Tennessee’s licensing requirements are manageable but require careful preparation. This guide covers every requirement, cost, and step to legally start your PI business in Tennessee.

Private Investigator Requirements in Tennessee at a Glance

Requirement	Agency	Cost	Timeline
PI License Application	Tennessee TPIPC	$150	After meeting all requirements
State PI Exam	PSI (testing provider)	$140	After application approval
License Fee	Tennessee TPIPC	$100	After passing exam
Fingerprinting (TBI/FBI)	TBI	$39.15	2-4 weeks processing
LLC Formation	Tennessee Secretary of State	$300 (minimum)	2-5 business days
Federal EIN	IRS	Free	Immediate (online)
General Liability Insurance	Private insurer	$800-$2,500/year	Same day

How to Start a Private Investigation Business in Tennessee (Step by Step)

Step 1: Meet Basic Eligibility Requirements

To apply for a Tennessee PI license, you must meet these basic requirements:

Age: At least 21 years old
Citizenship: US citizen or resident alien
Criminal history: No disqualifying felony or misdemeanor convictions (the Commission reviews each case)
Affiliation: Must be affiliated with a licensed Tennessee PI company (or establish your own)

Step 2: Submit Your License Application

Apply to the Tennessee Private Investigation and Polygraph Commission (TPIPC):

Application fee: $150
Website: TPIPC – Get a License
Required documentation: Completed application, proof of eligibility, fingerprint cards
Governing law: Tennessee Code Annotated, Title 62, Chapter 26

License Types

License Type	Description
Individual PI License	Required for each person performing investigative work
PI Company License	Required for the business entity operating as a PI firm

To operate independently, you need both an individual license and a company license.

Step 3: Complete Background Check

The background check is a mandatory part of the application process:

Fingerprint cards: Submit for processing by TBI (Tennessee Bureau of Investigation) and FBI
Fingerprinting fee: $39.15
Processing time: 2-4 weeks
Where to get fingerprinted: Law enforcement agencies, IdentoGO locations, or other approved vendors

Step 4: Pass the State PI Exam

After your application is processed, you’ll be authorized to take the state exam:

Testing provider: PSI (schedule through PSI after receiving authorization)
Exam fee: $140
Format: Closed-book, multiple-choice
Content: Tennessee rules and laws governing private investigation (TCA Title 62, Chapter 26) plus practical investigative knowledge
Passing score: 70% minimum

Step 5: Obtain Your License

License fee: $100 (paid upon passing the exam)
License term: 2 years
Renewal fee: $250 every 2 years
Continuing education: 12 hours during each 2-year renewal period

Total Licensing Cost Summary

Item	Cost
Application fee	$150
Exam fee (PSI)	$140
License fee	$100
Fingerprinting (TBI/FBI)	$39.15
Total to get licensed	$429.15

Step 6: Form Your Business Entity

Tennessee LLC: $300 minimum through TNBEAR
Federal EIN: Free from the IRS
Business license: From county/city clerk ($22 minimum)
PI Company License: Register your business with the TPIPC as a PI company

Step 7: Get Insurance and Start Operations

Insurance Requirements

General liability: $800-$2,500/year (covers bodily injury, property damage)
Professional liability (E&O): $500-$1,500/year (covers errors in investigation work)
Commercial auto: $1,000-$2,500/year (for surveillance vehicles)
Workers’ comp: Required at 5+ employees (private carrier)
Cyber liability: $300-$800/year (covers data breaches, digital evidence)

Equipment and Office Setup

Surveillance equipment: Camera with telephoto lens, dashcam, covert camera, binoculars ($2,000-$8,000)
Computer and software: Database access, skip tracing tools, case management software ($1,500-$4,000)
Vehicle: Reliable, inconspicuous vehicle for surveillance ($10,000-$30,000 used)
Communication: Business phone, secure email, encrypted file storage ($500-$1,000/year)
Office: Can start from a home office – no specific office requirements for licensing

Legal Restrictions in Tennessee

Tennessee law places specific restrictions on PI activities:

No impersonation of law enforcement – PIs cannot represent themselves as police
No trespassing – investigations must be conducted from public areas or with property owner permission
Recording laws: Tennessee is a one-party consent state – you can record a conversation you’re a party to without the other person’s consent
GPS tracking: Follow Tennessee law regarding electronic surveillance devices
No practicing law – PIs cannot give legal advice to clients
Carry permit: PI license does not authorize carrying a concealed weapon; you need a separate Tennessee Handgun Carry Permit or qualify under permitless carry provisions

Cost to Start a Private Investigation Business in Tennessee

Item	Cost	Notes
PI license (application + exam + license + fingerprints)	$429.15	Renewal $250 every 2 years + 12 hours CE
Tennessee LLC formation	$300	Annual report also $300/year
Federal EIN	Free	Apply online at IRS.gov
Business license	$22+	Annual, county/city clerk
General liability insurance	$800-$2,500/year	Required for professional operations
Professional liability (E&O)	$500-$1,500/year	Covers errors in investigation work
Commercial auto insurance	$1,000-$2,500/year	For surveillance vehicle(s)
Surveillance equipment	$2,000-$8,000	Camera, dashcam, covert camera, binoculars
Computer and software	$1,500-$4,000	Database subscriptions, case management
Vehicle (surveillance-appropriate)	$10,000-$30,000	Used, reliable, inconspicuous
Business phone and communication	$500-$1,000/year	Business line, secure email

Estimated total startup cost: $7,000-$18,000 (solo operator, home office) to $25,000-$50,000+ (with dedicated office, vehicle, and full equipment)

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Frequently Asked Questions

What license do I need to be a private investigator in Tennessee?

You need an individual PI license from the Tennessee Private Investigation and Polygraph Commission (TPIPC). This requires an application ($150), passing the state exam through PSI ($140, 70% minimum), fingerprint-based background check ($39.15), and a license fee ($100). Total licensing cost is about $429. To operate a PI business, you also need a PI company license.

How much does the Tennessee PI exam cost?

The exam fee is $140, paid to PSI (the testing provider). The exam is closed-book and covers Tennessee rules and laws (TCA Title 62, Chapter 26) plus practical investigative knowledge. You need a minimum score of 70% to pass.

Do I need to be affiliated with a PI company in Tennessee?

Yes. Tennessee requires individual PI licensees to be affiliated with a licensed PI company. If you want to operate independently, you must establish your own PI company and obtain both an individual license and a company license from the TPIPC.

What insurance do I need for a PI business in Tennessee?

While Tennessee doesn’t mandate specific insurance minimums for PIs, you should carry general liability ($800-$2,500/year), professional liability/E&O ($500-$1,500/year), and commercial auto ($1,000-$2,500/year) at minimum. Workers’ comp is required at 5+ employees.

Can I carry a firearm as a PI in Tennessee?

Your PI license does not authorize carrying a concealed weapon. Tennessee has permitless carry for those 21+ who are legally eligible, but you should also consider obtaining a Tennessee Enhanced Handgun Carry Permit for reciprocity with other states. Verify that your insurance policy covers armed operations.

How much does it cost to start a PI business in Tennessee?

A solo operator working from a home office can start for $7,000-$18,000 (including $429 in license fees, $300 LLC, insurance, and basic equipment). A more established operation with a dedicated office, surveillance vehicle, and full equipment runs $25,000-$50,000+.

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About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

Learn more about our research process