How to Start an LLC in Tennessee (Step-by-Step Guide)

Forming an LLC in Tennessee requires filing Articles of Organization with the Tennessee Secretary of State and paying a $300 filing fee (for LLCs with 1-6 members). Online filings are processed within 1-2 business days.

Tennessee has no state income tax on wages or business earnings, making it an attractive state for LLC owners. Follow these steps to start your Tennessee LLC in 2026.

How to Start an LLC in Tennessee (6 Steps)

Step 1: Name Your Tennessee LLC

Your LLC name must be distinguishable from other business names registered in Tennessee. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.”

Search the Tennessee Secretary of State business name database to check availability. You can reserve a name for 120 days by filing an Application for Reservation of Name ($20 fee).

Tennessee naming rules:

• Must be distinguishable from any other registered business entity in Tennessee
• Cannot include words implying the LLC is a bank, insurance company, or government entity without proper authorization
• Must contain an LLC designator (“Limited Liability Company,” “LLC,” or “L.L.C.”)
• Cannot contain language that implies a purpose not permitted by law or the LLC’s articles

Step 2: Choose a Registered Agent

Tennessee requires every LLC to have a registered agent with a physical street address in Tennessee. The registered agent receives legal documents, service of process, and official correspondence on behalf of your LLC.

You can serve as your own registered agent (if you have a Tennessee address), or use a professional service. Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $300 state fee.

Step 3: File Your Articles of Organization

File your Articles of Organization (Form SS-4270) with the Tennessee Secretary of State. You can file online through the TNCaB filing system or by mail.

Filing details:

• Filing fee: $300 (for 1-6 members); $50 per additional member over 6, up to a $3,000 maximum
• Online filing: TNCaB — Tennessee Secretary of State’s online portal (recommended)
• Processing time: 1-2 business days (online), 3-5 business days (mail, plus mailing time)

Information required:

• LLC name
• Registered agent name and address
• Principal office address
• Whether the LLC is member-managed or manager-managed
• Name and address of each organizer
• Duration (perpetual is standard)
• Number of members at the time of filing

Step 4: Create an Operating Agreement

Tennessee doesn’t legally require an operating agreement, but having one is strongly recommended. An operating agreement defines ownership structure, profit and loss distribution, management responsibilities, and procedures for adding or removing members.

Without an operating agreement, your LLC is governed by Tennessee’s default LLC rules, which may not reflect your intentions. Most banks also require an operating agreement to open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. You need an EIN to open a business bank account, hire employees, and file taxes.

All multi-member LLCs need an EIN. Single-member LLCs can use the owner’s Social Security Number but getting a separate EIN is recommended for privacy and banking purposes.

Step 6: Register for Tennessee Taxes

After forming your LLC, you should register with the Tennessee Department of Revenue for applicable state taxes. Tennessee imposes franchise and excise taxes on LLCs doing business in the state.

Tax registration details:

• Franchise tax: 0.25% of your LLC’s Tennessee-apportioned net worth (minimum $100)
• Excise tax: 6.5% of net taxable earnings
• Sales tax registration: Required if you sell taxable goods or services
• Filing deadline: April 15 each year for calendar-year filers

Register online through the Tennessee Taxpayer Access Point (TNTAP) portal.

Tennessee LLC Costs

Total first-year cost: $300-$599+ (depending on registered agent service and tax obligations). Tennessee’s annual report fee is among the higher in the nation at $300 for LLCs with 1-6 members. See our complete guide to LLC costs by state.

Tennessee LLC Taxes

Tennessee has no state income tax on wages or business earnings, but it does impose franchise and excise taxes on LLCs.

• State income tax: None — Tennessee repealed the Hall Income Tax in 2021. There is no state income tax on wages, salaries, or business earnings.
• Franchise tax: 0.25% of the LLC’s Tennessee-apportioned net worth, with a minimum payment of $100
• Excise tax: 6.5% of the LLC’s net taxable earnings in Tennessee
• Sales tax: 7% state rate, plus local taxes (combined rates typically range from 8.5% to 9.75%)
• Federal taxes: Standard pass-through taxation — profits pass to members’ personal federal returns

While Tennessee doesn’t tax income, the franchise and excise taxes can be significant for established businesses. New LLCs with low net worth and minimal earnings will owe the $100 minimum franchise tax.

Annual Requirements for Tennessee LLCs

• Annual report: Due by April 1 each year, filed with the Tennessee Secretary of State. Fee is $300 for LLCs with 1-6 members.
• Franchise and excise tax return: Due April 15 each year for calendar-year filers (Form FAE170). A seven-month extension is available, but payment is still due by April 15.
• Maintain a registered agent: Must have a registered agent with a physical Tennessee address at all times.
• Sales tax filing: If applicable, file and remit sales tax according to your assigned filing frequency (monthly, quarterly, or annually).

Frequently Asked Questions

How long does it take to form an LLC in Tennessee?

Online filings through the TNCaB portal are typically processed within 1-2 business days. Mail filings take 3-5 business days plus mailing time. In-person filings can be processed the same day.

Does Tennessee have a state income tax?

No. Tennessee repealed the Hall Income Tax effective January 1, 2021. There is no state income tax on wages, salaries, or business earnings. However, Tennessee does impose franchise and excise taxes on LLCs.

Why is the Tennessee LLC filing fee so high?

Tennessee’s $300 minimum filing fee is based on a per-member charge of $50 per member, with a minimum of $300 (covering up to 6 members). LLCs with more than 6 members pay $50 per additional member, up to a maximum of $3,000. The annual report fee follows the same structure.

Can I form a Tennessee LLC if I live in another state?

Yes. You can form a Tennessee LLC regardless of where you live. You’ll need a registered agent with a physical address in Tennessee. If you primarily do business in another state, you may need to register as a foreign LLC there as well. See our how to start an LLC guide for more information.

Does Tennessee require an operating agreement?

No, Tennessee does not legally require an operating agreement. However, we strongly recommend creating one to define ownership, management roles, and profit distribution. It also strengthens your limited liability protection and is usually required by banks to open a business account.

Start an LLC in Another State

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