How to Start an LLC in Tennessee

How much does it cost to start an LLC in Tennessee?

It costs $300 minimum ($50/member; min $300, max $3,000) to start an LLC in Tennessee. After formation, you will also owe $300/year minimum ($50/member; min $300, max $3,000) for the File Your Annual Report.

What are these fees for?

• The $300 minimum ($50/member; min $300, max $3,000) is to file the Articles of Organization — the document that officially creates your LLC.
• The $300/year minimum ($50/member; min $300, max $3,000) is for the File Your Annual Report — a mandatory filing that keeps your LLC in good standing.

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

• Online filing: 3–5 business days
• Mail filing: 1–2 weeks

You can file online or by mail. The filing fee is $50 per LLC member, with a minimum of $300 and a maximum of $3,000.

Steps to Form an LLC in Tennessee

Step 1: Search Your LLC Name

Search your LLC name to make sure it's available in Tennessee. Two businesses in the state cannot share the same name.

Tennessee business name search →

Step 2: Choose a Registered Agent

A Registered Agent is a person or company that accepts legal mail and state notices on behalf of your LLC. Tennessee requires your Registered Agent to have a physical street address in the state — PO Boxes are not allowed. Your options:

• Yourself (if you have a physical address in Tennessee)
• A friend or family member who lives in Tennessee
• A professional Registered Agent service

Step 3: File Articles of Organization with Secretary of State

To officially create your LLC, file the Articles of Organization with the Tennessee Secretary of State. The filing fee is $300 minimum ($50/member; min $300, max $3,000).

You can file online or by mail. The filing fee is $50 per LLC member, with a minimum of $300 and a maximum of $3,000.

Step 4: Create an Operating Agreement

An Operating Agreement is an internal document that shows who owns the LLC and how it will be run. You do not need to file it with the state or the IRS — just keep it with your business records. All LLCs should have one, even single-member LLCs.

Step 5: Get an EIN from the IRS

An EIN (Employer Identification Number) is your LLC's federal tax ID. It is free from the IRS and is needed to open a business bank account, hire employees, and file taxes.

• US residents with an SSN: Apply online at IRS.gov (takes ~15 minutes, free)
• Non-US residents without an SSN: Apply by fax or mail using Form SS-4 (takes 1–3 months)

Step 6: File Your Annual Report

First due: April 1 of the year after your LLC is approved

After Your LLC Is Approved

Open a business bank account

Keep business and personal finances separate to maintain liability protection. You will need your EIN and your stamped/approved Articles of Organization to open an account.

Get business licenses and permits

Tennessee requires a Standard Business License from your city or county. Check with your local government for requirements.

Understand your tax obligations

LLCs don't pay federal income tax directly. Profits and losses pass through to the members, who report them on their personal federal tax returns.

Tennessee has no state income tax on wages or salary. However, Tennessee imposes a Franchise and Excise Tax on LLCs with business activity in the state. The minimum Franchise Tax is $100 for LLCs with over $10,000 in net worth.

Tennessee LLC FAQs