How to Start an LLC in Tennessee (2025 Guide)

How to Form an LLC in Tennessee in 5 Steps

In order to form your LLC in Tennessee, there are certain steps you’ll need to complete:

1. Name Your Tennessee LLC
2. Choose an Initial Registered Agent
3. File the Articles of Organization
4. Create an Operating Agreement
5. Get an EIN

Step 1: Name Your Tennessee LLC

Before you get started, you will need to pick a suitable name for your Tennessee LLC. 

This will need to comply with all applicable naming requirements under Tennessee law and be both succinct and memorable, as this will make it easily searchable by your potential clients.

1. Tennessee LLC Naming Guidelines

• Your name must include the phrase “limited liability company,” “limited company,” or a suitable abbreviation (e.g., LLC L.L.C., LC, etc.).
• Your name must be distinguishable from the names of all other entities registered with the Tennessee Secretary of State. 
• Your name cannot include language that implies that it’s affiliated with or sponsored by a veteran, religious, or charitable organization without prior written approval. 
• Your name cannot include language that implies it’s affiliated with a state or government agency. Examples of such language include Secretary of State, FBI, and Treasury.
• Your name cannot include certain restricted words without prior approval from the relevant state body . For example, the word “bank” needs approval from the Department of Financial Institutions, etc.). 

For more information, we recommend having a look at Tennessee’s Official Naming Guidelines. 

2. Tennessee Name Availability Search

To check whether your desired name has already been taken by another business entity in Tennessee, you can perform a business name availability search on the Tennessee Secretary of State website.

If you’re not going to start your LLC right away, it might be a good idea to consider reserving your name for up to 120 days. You can do this by filing Form SS-9425 and paying the $20 processing fee. 

For more information, you can have a look at our Tennessee LLC Name Search guide.

3. Finding the Right Domain

You should check online to see if your business name is available as a web domain. Even if you don’t plan to make a business website right away, this is an extremely important step as it will prevent others from acquiring it, potentially saving you both time and money in the long term. 

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

FAQ: Naming a Tennessee LLC

Step 2: Choose a Registered Agent in Tennessee

After you find the right name for your LLC, you will need to nominate a Tennessee registered agent. This is a necessary step in your Articles of Organization, which is the official document used to register your LLC with the Tennessee Secretary of State. 

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. You can think of your registered agent as your business’s primary point of contact with the state.

Who can be a registered agent?

A registered agent must be a resident of Tennessee or a corporation that is authorized to transact business in the state. You can choose to elect an individual within the company (e.g., yourself, etc.), use an attorney (not recommended due to the high cost), or go with a registered agent service.

FAQ: Nominating a Registered Agent

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 do this online, by mail, or in person. The filing fee is $50 per member, with a minimum of $300 and a maximum of $3,000.

Before filing, make sure you have completed your Articles of Organization correctly. You will need to have filled in the following sections:

• The name of your LLC
• Written consent to use an indistinguishable name (if applicable)
• The name and complete address of your LLC’s registered agent
• The close month of your LLC’s fiscal year
• The effective date of this document (if not immediately)
• Whether Your LLC Is member-, manager-, or director-managed
• The number of members at the date of filing
• The full address of the LLC’s principal executive office
• Your LLC’s mailing address (if different to its principal office)
• Any additional provisions

File the Articles of Organization

OPTION 1: File Online With the Secretary of State

File Online

– OR –

OPTION 2: File Form SS-4270 by Mail or In Person

Download Form

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.

Note: If you’re expanding your existing business to the state of Tennessee, you’ll need to register as a foreign LLC.

FAQ: Filing Tennessee LLC Documents

Step 4: Create a 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 who the LLC owners are as well as the business’s operating procedures.

Why are operating agreements important? A comprehensive operating agreement ensures that all LLC members are on the same page and reduces the risk of future conflict.

You can use the free tool in our Business Center to create a custom operating agreement in minutes — or download our free templates:

• Tennessee Single-Member LLC Operating Agreement
• Tennessee Multi-Member LLC Operating Agreement

FAQ: Creating a Tennessee LLC Operating Agreement

Step 5: Get an EIN for Your Tennessee LLC

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 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

Apply Online

– OR –

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an EIN

Best LLC Services in Tennessee Compared

For a comprehensive comparison, read our Best LLC Service guide. We reviewed and ranked the top LLC formation services to help you determine the best fit for your new business.

Important Next Steps to Protect Your Tennessee LLC

After you’ve formed your LLC, you’ll need to complete several key steps in order to:

• Separate your personal and business assets
• Stay compliant with state and federal laws

1. Get a Business Bank Account and Credit Card

Getting a dedicated business bank account is an essential part of operating legitimately as it keeps your personal and business assets separate, and therefore helps shield your personal limited liability. 

Skipping this step can often lead to:

• Courts determining that you haven’t been treating your LLC as a separate entity
• Your “corporate veil” being pierced, meaning that you will no longer benefit from limited liability in law. 

Recommended: Have a look at our Best Business Bank Accounts for LLCs in 2025 review. 

You can also choose to acquire a corporate credit card if you’re interested in building your credit and potentially raising capital down the line. 

2. Check If You Need a Tennessee Business License

Tennessee does not require LLCs to hold a “general” business license in order to operate. 

Even so, you should know that business licensing is regulated at a local, state, and federal level, so your licensing needs will ultimately depend on your exact location and industry:

• Local Licenses: You’ll likely need to apply for either a minimum activity license or a standard business license to operate your LLC in Tennessee. You can apply directly through the county clerk’s office in the county where your business will be located ($15 license fee).
• State-Level Licenses: You can check with the Tennessee Department of Commerce and Insurance to find out if your business activities will require a professional license, occupational permit, or regulatory approval at the state level.
• Federal Licenses: While most Tennessee LLCs will not be subject to federal regulation, those involved in heavily regulated industries (such as agriculture, alcohol, and firearms) will. You can have a look at this Small Business Administration article for the relevant federal agency you’ll need to contact.

A few questions to ask yourself when deciding whether you need a license include:

• Will you sell, lease, or rent taxable goods or services? If so, you’ll need to register for a Sales and Use Tax Certificate of Registration with the Tennessee Department of Revenue. You can find more information on this on our Tennessee Sales Tax guide. 
• Will you work as a licensed professional? If your LLC will focus on regulated fields — such as medicine, law, insurance, or real estate — you’ll need to ensure that you or a member of your LLC is appropriately licensed.
• Will your LLC’s activities negatively impact the environment? If so, you might need to obtain a business license or permit from the TN Department of Environment and Conservation.

For more information, you can have a look at our Tennessee Business License guide; If you’d rather have a service handle this step for you, we recommend checking out LegalZoom’s Business License service.

3. Understand Your Tennessee LLC Tax Obligations

Tennessee LLCs are not all taxed in the same way; this is because LLCs are taxed as pass-through entities by default, meaning that they are largely taxed similarly to sole proprietors — the business gets paid, the profits pass to you as the owner, and you get taxed. There is no “corporate” tax involved. 

This means that:

On a Federal Level

You’ll need to submit personal income tax returns using either Form 1040 (for single member LLCs) or Form 1065 (for multi-member LLCs). If you have employees, you will also be subject to federal income tax withholding. 

On a State Level

Tennessee does not impose a personal income tax, but your LLC may still be subject to several state-level taxes. These include a 7% state sales and use tax on most retail sales, a franchise tax (0.25% of the tax base, with a $100 minimum), and an excise tax (6.5% on net earnings) for LLCs taxed as corporations.

On a Local Level

Tennessee cities and counties may impose local sales tax rates of up to 2.75% in addition to the state’s 7% rate. Your LLC may also be subject to business personal property tax if it owns equipment, machinery, or other tangible assets, as well as real property tax if it owns land or buildings.

For more information on the Tennessee-specific LLC tax obligations that may apply to you, we recommend having a look at our in-depth Tennessee LLC Taxes guide. Alternatively, you can schedule a free online consultation with 1800-Accountant for all your tax-related questions. 

4. Get Business Insurance for Your LLC in Tennessee

Even though an LLC offers limited liability, you’ll still likely need to purchase some form of business insurance to protect your LLC’s assets. 

This is because an LLC’s default limited liability protects your personal assets, not the business’s. Some of the most common types of business insurance include:

• General Liability Insurance: This is a broad insurance policy that protects your business from lawsuits. Most small businesses end up getting general liability insurance.
• Professional Liability Insurance: This is a business insurance policy for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
• Workers’ Compensation Insurance: This insurance covers medical costs and lost wages if an employee is injured on the job and is legally required in Tennessee for any business with five or more employees.

Want to learn exactly what coverage your business may need? Read our full Tennessee Business Insurance guide.

5. Learn How to Properly Sign Your LLC’s Legal Documents

Improperly signing a document as yourself and not as a representative of the business can leave you open to personal liability. 

When signing legal documents on behalf of your company, you we recommend following this formula to avoid any problems:

• Formal name of your business
• Your signature
• Your name
• Your position in the business as its authorized representative

It’s important to be consistent and sign all official documents using this format; this will help protect your personal assets by clearly showing that the agreement is with the LLC, not you as an individual.

6. Submit an Annual Report for Your Tennessee LLC

In order to maintain your LLC in good standing in Tennessee, you are required to file an annual report online with the Tennessee Secretary of State. In order to accurately complete this report, you’ll need to have the following on hand: 

• Your LLC’s principal office and/or mailing address.
• The name and address of your registered agent.
• Your LLC’s Officer/director, member/manager, or partner information.
• The Signature and title of the person filing the annual report.

This Annual Report is due on the first day of the fourth month following the close of your LLC’s fiscal year. The filing fee is $50 per member, with a minimum fee of $300 and a maximum fee of $3,000.

Note: While the state does not charge late fees if you miss your filing deadline, Tennessee may revoke your LLC’s good standing after 60 days of failing to file an annual report.