How to Start an LLC in Tennessee
Last Updated: by the TRUiC Team
To start a Tennessee LLC you'll need to file the Articles of Organization with the Tennessee Secretary of State, with a starting fee of $300 to file. You can apply online, in-person, or by mail.
Follow our step-by-step How to Start an LLC in Tennessee guide to get started today.
- Name Your Tennessee LLC
- Choose a Registered Agent
- File the Articles of Organization
- Create an Operating Agreement
- Get an EIN
- File the Annual Report
- Keep Your Company Compliant
Or Simply use a professional service:
Learn more about LLCs and their benefits in our What is an LLC guide. To form an LLC in any state, visit our How to Set Up an LLC guide.
Step 1: Name your Tennessee LLC
Choosing a company name is the first and most important step in setting up an LLC in Tennessee. Be sure to choose a name that complies with Tennessee naming requirements and is easily searchable by potential clients.
1. Follow the naming guidelines for a Tennessee LLC:
- Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
2. Is the name available in Tennessee? Make sure the name you want isn't already taken by doing a Tennessee LLC name search on the Secretary of State website.
To learn more about searching for a Tennessee LLC name, read our full guide.
3. Is the URL available? We recommend that you check to see if your business name is available as a web domain. Even if you don't plan to start a business website today, you may want to buy the URL in order to prevent others from acquiring it.
Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.
We reviewed and ranked the best LLC services. Find out which is best for you.
Step 2: Choose a Tennessee Registered Agent
You are required to appoint a Registered Agent for your Tennessee LLC.
What is a Registered Agent? A registered agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business's point of contact with the state.
Who can be a Registered Agent? A registered agent must be a resident of Tennessee or a corporation, such as a registered agent service, authorized to conduct business in the state of Tennessee. You may elect an individual within the company including yourself.
Recommended: Northwest provides the first year of registered agent service free with LLC formation ($29 + State Fees)
Step 3: File the Tennessee LLC Articles of Organization
To register your Tennessee LLC, you'll need to file Form SS-4270 - Articles of Organization with the Tennessee Secretary of State. You can apply online, in person, or by mail. The filing fee is $50 per member, with a minimum of $300 and a maximum of $3,000.
Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.
File the Articles of Organization
OPTION 1: File Online With the Secretary of State
- OR -
OPTION 2: File Form SS-4270 by Mail or In Person
State Filing Cost: $300+. Make check, cashier's check, or money order payable to the Tennessee Secretary of State. (Nonrefundable)
Filing Address:
6th floor - Snodgrass Tower
Attn: Corporate Filing
312 Rosa L. Parks Ave.
Nashville, TN 37243
For help with completing the form, visit our Tennessee Articles of Organization guide.
If you’re expanding your existing LLC to the State of Tennessee, you will need to form a foreign LLC.
Step 4: Create Your Tennessee LLC Operating Agreement
In Tennessee, LLCs are not required to have an operating agreement, but it's a good practice to have one.
What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.
Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
For more information on operating agreements, read our Tennessee LLC operating agreement guide.
Recommended: Download a template or create a Free Operating Agreement using our tool.
Step 5: Get a Tennessee LLC EIN
You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.
Why do I need an EIN? An EIN number is required for the following:
- To open a business bank account for the company
- For federal and state tax purposes
- To hire employees for the company
Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.
FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.
Get an EIN
Option 1: Request an EIN from the IRS
- OR -
Option 2: Apply for an EIN by Mail or Fax
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
Fee: Free
Step 6: File the Annual Report
Tennessee requires LLCs to file an annual report. This form can be submitted online.
File your Annual Report
File Online with the Secretary of State
Fee: Filing fee is $50 per member with a minimum fee of $300 and a maximum fee of $3,000. (Nonrefundable)
Due Date: Due by the first day of the fourth month following the close of the LLC's fiscal year.
Late Filings: Tennessee does not charge late fees if you miss your filing deadline but may dissolve or revoke your LLC after 60 days of failing to file an annual report.
Steps After LLC Formation
Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.
Visit our After Forming an LLC guide to learn more.
Step 7: Keep Your Company Compliant
Tennessee Business Permits and Licenses
To operate your Tennessee LLC, you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.
The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.
Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.
Find out how to obtain necessary Tennessee business licenses and permits for your LLC or have a professional service do it for you:
- Business License Guide: Use our detailed Tennessee Business License guide.
- Federal: Use the U.S. Small Business Administration (SBA) guide.
- State: Use the State of Tennessee Licenses and Permits website.
- Local: Contact your local county clerk and ask about local business licenses and permits.
Recommended: If you are a first-time entrepreneur, consider having a professional service research your business’s licensing requirements. Read our best business license services review on Startup Savant.
Tennessee LLC Tax Filing Requirements
In order to keep your business in good standing, it's important to stay up to date on your Tennessee LLC taxes.
Depending on the nature of your business, you may be required to register for one or more forms of state tax.
Sales Tax
If you are selling a physical product, you’ll typically need to register for a seller's permit through the Tennessee Department of Revenue website.
This certificate allows a business to collect sales tax on taxable sales.
Sales tax, also called "Sales and Use Tax," is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.
Read our Tennessee sales tax guide to find out more.
Employer Taxes
If you have employees in Tennessee, you will have to register for Unemployment Insurance Tax on the State of Tennessee's Workforce website.
Register for Tennessee State Taxes
Federal LLC Tax Filing Requirements
Most LLCs will need to report their income to the IRS each year using:
- Form 1065 Partnership Return (most multi-member LLCs use this form)
- Form 1040 Schedule C (most single-member LLCs use this form)
How you pay yourself as an owner will also affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.
Read our LLC Tax Guide to learn more about federal income taxes for LLCs.
Franchise & Excise Tax
All Tennessee LLCs must register for and pay both a franchise tax and an excise tax to the state Department of Revenue.
The Tennessee franchise tax is 0.25% and is based on either the LLC's net worth or the book value of the LLC's real and tangible property owned or used in the state.
The excise tax is 6.5% and is based on the LLC's net earnings or income for that tax year.
For more information, check out the state's Franchise and Excise Tax Manual.
File Franchise & Excise Taxes
File Online With the Tennessee Department of Revenue
Fee: Varies based on tax rate (minimum $100 franchise tax)
Due Date: Due on the 15th day of the fourth month after the beginning of an LLC’s tax year.
Hiring Employees
If you plan to hire employees for your Tennessee LLC, stay compliant with the law by following these steps:
- Verify that new employees are able to work in the US
- Report employees as "new hires" to the State
- Provide workers' compensation insurance for employees
- Withhold employee taxes
- Print workplace compliance posters and place them in visible areas of your workspace
Find more information at the Tennessee Department of Labor and Workforce Development.
Recommended: Check out our Hiring for your Small Business Guide for resources like sample job descriptions, payroll service reviews, and more.
Common Questions About Tennessee LLCs
What is an LLC?
LLC is short for Limited Liability Company. It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits. For more information, read our What is an LLC guide.
Watch our video: What is an LLC?
How do I name my Tennessee LLC?
You must follow the Tennessee LLC naming guidelines when choosing a name for your LLC:
- Include the phrase "limited liability company" or one of its abbreviations (LLC or L.L.C.).
- Do not use words that could confuse your business with a government agency (FBI, State Department, CIA, etc.).
- Receive the proper licensing when using the words such as lawyer or doctor.
If you are having trouble coming up with a name for your LLC use our LLC Name Generator. That will not only find a unique name for your business but an available URL to match.
After you get your business name, your next step is getting a unique logo. Get your unique logo using our Free Logo Generator.
Do I need to get a DBA or Trade Name for my business?
Most LLCs do not need a DBA. The name of the LLC can serve as your company’s brand name and you can accept checks and other payments under that name as well. However, you may wish to register a DBA if you would like to conduct business under another name.
To learn more about DBAs in your state, read our How to File a DBA guide.
Can I be my own Registered Agent?
Yes. You or anyone else in your company can serve as the registered agent for your LLC.
Read more about being your own registered agent.
Is a Registered Agent service worth it?
Using a professional Registered Agent service is an affordable way to manage government filings for your LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.
For more information, read our article on Tennessee registered agents.
How long does it take to form an LLC in Tennessee?
Filing the Articles of Organization takes 24 hours online, 3 to 5 business days by mail.
What is the difference between a domestic Tennessee LLC and foreign LLC?
An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.
Read our What Is a Foreign LLC article to learn more.
How much does it cost to start a Tennessee LLC?
The cost to start a Tennessee LLC is $50 per member (minimum of $300 and a maximum of $3,000).
To learn more, read our guide on the cost to form a Tennessee LLC.
Do I need to file my operating agreement with the state?
No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.
How do I get an EIN if I don’t have a Social Security number?
A social security number is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application. Learn more here about applying as an international applicant.
What tax structure should I choose for my Tennessee LLC?
When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.
However, some LLCs can reduce their federal tax obligation by choosing the S corporation (S corp) status. To learn more, read our LLC vs. S Corp guide.
Do I need an EIN for my LLC?
All LLCs with employees, or any LLC with more than one member, must have an EIN. This is required by the IRS.N.
Learn why we recommend always getting an EIN and how to get one for free in our Do I Need an EIN for an LLC guide.
What is the taxable rate of LLCs in Tennessee?
The franchise tax’s minimum payment is $100, and the rate is .25% of the net worth the LLC or the LLC’s tangible property.
The excise tax is 6.5% of the LLC’s taxable net income, made in Tennessee.
What is the minimum wage in Tennessee?
The minimum wage in Tennessee is $7.25 per hour.
How often do I need to pay employees?
Tenessee requires wages to be paid regularly at least twice per month.
Tennessee Business Resources
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