To start an LLC in Tennessee, file the Articles of Organization with the Tennessee Secretary of State. The state filing fee is currently $300. $50 per member, with a $300 minimum and $3,000 maximum.
What's Different About Tennessee
- Tennessee has no personal income tax, but LLCs owe franchise and excise taxes: excise tax on net earnings and franchise tax on net worth, with a $100 minimum franchise tax.
- Some single-member LLCs owned by individuals may be exempt from franchise and excise taxes. Check with the Department of Revenue.
- Annual report: $300, due by the 1st day of the 4th month after your fiscal year ends (April 1 for calendar-year LLCs), every year.
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Choose a Business Name
Your name must include "Limited Liability Company," "LLC," or "L.L.C." and be different from names already on file with the Tennessee Secretary of State.
Search Tennessee Business Records
Search the state's business database before filing to make sure your name is available.
Choose a Registered Agent
Every Tennessee LLC needs a registered agent with a physical street address in the state, available during business hours to receive legal papers. You can serve yourself if you qualify, or hire a service.
File the Articles of Organization
File with the Tennessee Secretary of State. The state fee is $300. $50 per member, with a $300 minimum and $3,000 maximum.
Prefer Help Filing Your LLC?
If you'd rather have a service help prepare and file your LLC formation documents, you can review the LLC formation services from LegalZoom or Bizee. A formation service is optional — you can always file directly with the state yourself.
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Create an Operating Agreement
Tennessee doesn't require you to file an operating agreement, but a written one protects your liability shield and sets the rules for running the business.
Get an EIN
Apply for a free Employer Identification Number directly from the IRS. You'll need it for a business bank account, hiring, and most tax filings.
Register for State Taxes and Local Licenses
Register with the Tennessee Department of Revenue for any state taxes that apply, such as sales tax if you sell taxable goods or services. Check with your city and county for local business licenses.
Set Up Business Finances
Open a separate business bank account and set up simple bookkeeping so business and personal money never mix.
File Your Annual Report
File every year, by the 1st day of the 4th month after your fiscal year ends (April 1 for calendar-year LLCs). The fee is $300. $50 per member, $300 minimum.
How Much Does It Cost to Start an LLC in Tennessee?
| Fee | Amount | When |
|---|---|---|
| Articles of Organization | $300 | One time |
| Annual report | $300 | Every year |
| Minimum franchise tax | $100 | Every year |
| EIN from the IRS | $0 | One time |
Fees and requirements can change. Verify current amounts with the appropriate government agency before filing. Optional services such as registered agents or formation companies are not included above.
Ongoing Tennessee Requirements
- Annual report: $300, due by the 1st day of the 4th month after your fiscal year ends (April 1 for calendar-year LLCs).
- Franchise and excise tax return.
- State and local business tax, depending on your city and revenue.
- Keep your registered agent and business address current with the state.
Federal note: since March 2025, LLCs formed in the United States are not required to file beneficial ownership (BOI) reports with FinCEN.
Common Tennessee LLC Mistakes
Using a P.O. box as the registered agent's address. Tennessee requires a physical street address.
Missing the annual report deadline, which can lead to penalties or losing good standing.
Forgetting local business licenses, which are separate from forming the LLC.
Frequently Asked Questions
How much does it cost to start an LLC in Tennessee?
The state filing fee is $300. After that, the annual report costs $300 every year. Also plan for: minimum franchise tax.
Does a Tennessee LLC have to file an annual report?
Yes. Tennessee LLCs file an annual report every year, due by the 1st day of the 4th month after your fiscal year ends (April 1 for calendar-year LLCs). $50 per member, $300 minimum.
Official Sources
Related LLC Guides
Tennessee LLC Cost
Every required government fee, plus what's optional.
Read the GuideWhat Is a Registered Agent?
What a registered agent does and who can serve as one.
Read the GuideHow to Get an EIN
Apply directly with the IRS — the application is free.
Read the GuideOperating Agreement Guide
What your agreement should cover, based on your ownership.
Read the GuideTennessee Business License
Formation and licensing are separate — see what applies to you.
Read the GuideTennessee LLC Annual Report
What to file each year, the fee, and the deadline.
Read the GuideWhat to Do After Forming Your LLC
The practical steps that come next.
Read the GuideStarting in Another State?
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