How Much Does It Cost to Start an LLC in Tennessee?

Tennessee LLC Online Filing Fee: $300+

The main cost to start an LLC in Tennessee is the $300+ fee to file your LLC's Articles of Organization online with the Tennessee Secretary of State.

For a look at LLC costs in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Cost to Form a Foreign LLC in Tennessee

If you already have an LLC that is registered in another state and you’d like to expand your business into Tennessee, you’ll need to register your LLC as a foreign LLC in Tennessee.

The cost for registering a Tennessee foreign LLC is $50 per member, with a minimum fee of $300 and a maximum fee of $3,000. You can register a foreign LLC in Tennessee by filing an Application for Certificate of Authority (Form SS-4233).

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 4 months prior to LLC formation by filing an Application for Reservation of Name (Form SS-9425) and paying the $20 filing fee.

Assumed Name

File an Application for Registration of Assumed Limited Liability Company Name (Form SS-4230) and pay the $20 filing fee to create a name other than your legal LLC business name.

Seven Basic Steps to Start an LLC in Tennessee

Step 1: Name Your Tennessee LLC
Step 2: Choose a Registered Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: File the Annual Report
Step 7: Keep Your Company Compliant

Step 1: Name Your Tennessee LLC

When you name your Tennessee LLC, you’ll need to choose a name that:

1. Is available for use in the state of Tennessee
2. Meets Tennessee naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Tennessee guide for detailed naming rules and instructions for registering a business name in Tennessee.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Tennessee must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Tennessee registered agent must:

• Be at least 18 years or older
• Have a physical address in Tennessee
• Be available during normal business hours to accept service of process

Step 3: File the Articles of Organization

The Tennessee Form SS-4270 - Articles of Organization is a document that is filed with the Tennessee Secretary of State to form an LLC. The fee for filing the Articles of Organization is at least $300. The filing fee is $50 per LLC member, with a minimum total fee of $300 and a maximum of $3,000.

For detailed instructions for completing the Articles of Organization, visit our How to File the Tennessee Articles of Organization guide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Tennessee LLCs, 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.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

• Opening a business bank account
• Hiring employees

Step 6: File the Annual Report

Tennessee requires LLCs to file an annual report online, due by the first day of the fourth month following the close of the LLC's fiscal year. The filing fee is $50 per member, with a minimum fee of $300 and a maximum fee of $3,000. 

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.

Step 7: Keep Your Company Compliant

Maintaining compliance for your Tennessee LLC involves several key steps:

• Licenses & Permits: Depending on your business type, various federal, state, and local licenses or permits may be required. These could range from health permits for restaurants to building permits, and may require short classes. Fees vary based on the specific license or permit.
• Tennessee State Taxes: As a business, you need to register for appropriate state taxes, such as individual income tax. If you sell physical products, registering for a seller's permit is necessary. Businesses with employees must register for Unemployment Insurance Tax.
• Franchise & Excise Tax: Tennessee LLCs must pay both a franchise tax, based on the LLC's net worth or tangible property value (0.25%), and an excise tax, based on net earnings (6.5%).
• Federal Taxes: Most LLCs need to report their income to the IRS annually, with multi-member LLCs typically using Form 1065 and single-member LLCs using Form 1040 Schedule C.
• Employee Hiring: Compliance steps for hiring employees include verifying work eligibility, reporting new hires to the state, providing workers' compensation insurance, withholding employee taxes, and visibly displaying workplace compliance posters.

Staying updated on these matters ensures your Tennessee LLC remains in good standing.