Forming an Tennessee LLC

(2025 Guide)

2025 LLC Guide

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How to Start an LLC in Tennessee (Step-by-Step Guide)

Discover how to start an LLC in Tennessee, our step-by-step guide. Learn the essential requirements and process to form your business today.

To establish an LLC in Tennessee, submit the Articles of Organization to the Tennessee Secretary of State. The fee is $300, and approval is granted within one day.

Here are the six steps to take:
– Choose an LLC Name
– Select a Registered Agent
– File Articles of Organization
– Create an Operating Agreement
– Obtain an EIN
– Register for Business Tax

If you’re interested in setting up your LLC on your own, consult our free guide below.

For those who prefer professional assistance, we suggest hiring Northwest Registered Agent.

Need to save time?

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

What is the cost to establish an LLC in Tennessee?

The expense of forming a Tennessee LLC varies based on the number of LLC Members (owners). If your LLC comprises 1 to 6 Members, the filing fee will be $300. For instance, with 2 Members, the fee is $300, and with 6 Members, it remains $300. If your LLC exceeds 6 Members, you’ll need to add $50 per additional Member beyond the initial $300. For example, with 7 Members, the fee becomes $350 ($300 + $50). With 10 Members, the fee is $500 ($300 + $50 + $50 + $50 + $50). For further details on LLC Costs, refer to LLC Costs in Tennessee.

How long is the process to obtain an LLC in Tennessee?

Filing by mail results in approval within 3-5 business days, plus mailing time. Filing online ensures immediate approval. For updates on potential delays, consult How long does it take to get an LLC in Tennessee.

Here’s how to establish an LLC in Tennessee

1.Search your LLC Name

Conduct a search for your LLC name to ensure it’s available in the state. This step is crucial because no two businesses within the state can share the same name. Begin by searching for your desired business name and comparing it against those already registered in the state. You can verify that the LLC name you want is distinct from other businesses through the state’s Business Name Availability Search. Additionally, acquaint yourself with the state’s naming regulations to ensure your LLC approval. We’ll delve into both aspects further here: Tennessee LLC Name.

Note: 

Most people choose “LLC”.

2. Select a Tennessee Registered Agent

The following step involves selecting a Registered Agent. A Tennessee Registered Agent is an individual or company responsible for receiving legal mail and state notices on behalf of your Tennessee Limited Liability Company.

Who is eligible to be an LLC Registered Agent? You have three options for appointing a Registered Agent:

You
A friend or family member
A Registered Agent Service

Tennessee mandates that LLC Registered Agents must maintain a physical street address within the state. PO Boxes are not permissible. The name and address of the Registered Agent will be included in public records.

If you lack an address in Tennessee or desire increased privacy, you can opt for a Registered Agent Service for your LLC.

We suggest Northwest Registered Agent

One of the aspects we appreciate most about Northwest is their willingness to allow you to use their office address for your LLC filing. This ensures your personal address is not listed in public records.

Additionally, they provide a service to scan any mail addressed to your LLC and upload it to your online account. Northwest offers exceptional customer service, and we trust them as our own Registered Agent.

Special offer: 

Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.

(Read our Northwest Registered Agent review.)

3. Submit LLC Articles of Organization


To establish an LLC, you must submit the Articles of Organization.

This document, when filed with the Tennessee Secretary of State, officially forms your LLC. The online filing fee for the Tennessee Articles of Organization is $300.

If you prefer to handle the filing yourself, check out our detailed guide: Tennessee Articles of Organization. Alternatively, you can hire a service to complete it on your behalf.

Need to save time? 

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

4. Draft an LLC Operating Agreement

An LLC Operating Agreement acts as a complementary document to the Certificate of Formation. While the Certificate of Formation establishes your LLC, the Operating Agreement identifies the owners of the LLC.

Moreover, many banks require an Operating Agreement when setting up an LLC bank account. It is also invaluable if legal issues arise, as it demonstrates the proper management of your LLC. For these reasons, we advise all LLCs, including Single-Member LLCs, to have an Operating Agreement.

Additionally, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our Tennessee Operating Agreement video for a step-by-step guide on how to complete it.

Download a free LLC Operating Agreement:

Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word

(What’s better? See Member-managed vs Manager-managed LLC)

5. Obtain an EIN for Your LLC

The following step is to secure a Tennessee EIN from the IRS for your LLC. Note: An EIN, also known as a Federal Tax ID Number or Federal Employer Identification Number, is essential.

An EIN is needed to:
– Identify your LLC for tax purposes
– Open a business bank account
– Apply for business licenses and permits

How much does an EIN cost? The IRS provides an EIN at no charge.

How long does it take to receive an EIN? Online applications are processed in 15 minutes, while mail or fax applications may take 1-3 months.

How can I obtain an EIN?
– US Citizens/Residents: With an SSN or ITIN, apply online. Follow these instructions: Apply for an EIN online.
– Non-US Residents: You can’t apply online, but you can obtain an EIN via fax or mail. See these instructions: How to get an EIN without an SSN or ITIN.

What should I do after my LLC is approved?

Once your LLC gets the green light, there are a few more steps to take.

Open an LLC business bank account


Set up a business bank account for your LLC. This simplifies accounting and keeps your business finances separate from your personal ones, which is crucial for maintaining personal liability protection.

Get business licenses and permits


The good news is that Tennessee doesn’t have a state general business license. However, depending on your LLC’s location, you might need a local business license or permit. For instance, starting a daycare might require a city or county business license. Check out our Tennessee Business License page for more details.

File your LLC Annual Report


All Tennessee LLCs must file an Annual Report each year to stay in good standing with the state. The filing fee for a Tennessee Annual Report starts at $300 annually. The fee depends on the number of LLC members:
– LLCs with 6 or fewer members pay a flat fee of $300.
– LLCs with more than 6 members pay $300 plus $50 for each additional member beyond the 6th. For example, an LLC with 10 members would pay $500 ($300 plus $50 for each of the 4 extra members).

When is the Annual Report due?
The Annual Report filing fee is due annually, based on your business’s fiscal year. It must be paid by the 1st day of the 4th month after the fiscal year ends. Most choose a fiscal year from January 1 to December 31, making the Annual Report due by April 1st each year.

When is my first Annual Report due?
The first Annual Report is due the year after your LLC approval. If your LLC was approved on February 15, 2025, your first report is due by April 1, 2026.

How do I file my LLC Annual Report?
You can file online or by mail, though online filing is simpler. Follow our step-by-step guide here: Tennessee LLC Annual Report.

File and pay taxes


LLCs don’t pay federal taxes directly. Instead, LLC Members include the LLC’s taxes in their personal tax returns.

How will my LLC be taxed?
By default, the IRS taxes an LLC based on its ownership:
– A Single-Member LLC is taxed as a Sole Proprietorship.
– A Multi-Member LLC is taxed as a Partnership.

Alternatively, you can request the IRS tax your LLC as a C-Corporation or S-Corporation. Beyond federal taxes, there are state and local taxes such as sales tax. Learn more in Tennessee LLC Taxes.

Helpful Resources

How to Start an LLC in Tennessee FAQs

Can I start an LLC online in Tennessee?

Absolutely, you can establish your LLC online in Tennessee. The fee for filing the Articles of Organization is $300. When you file online, your LLC gets approved instantly.

A primary benefit of an LLC is the protection of personal assets. This means if your business faces a lawsuit, your personal belongings like your home, vehicles, and bank accounts remain protected. This protection extends to all LLC owners, known as LLC Members, regardless of whether it’s a Single-Member or Multi-Member LLC. LLC owners are shielded from the company’s debts and liabilities. Such protection isn’t available for Sole Proprietorships or Partnerships, where personal assets aren’t safeguarded in lawsuits. For this reason, Limited Liability Companies (LLCs) are favored as a business structure.
Another advantage is LLC pass-through taxation. Here, the LLC itself doesn’t incur federal income taxes. Profits are passed through to the LLC Members, who then report the income on their personal tax returns. For further details, please check How are LLCs taxed.

Determining if Tennessee is a suitable state for starting an LLC largely depends on your residence and business location. If you’re residing or conducting business in Tennessee, then it’s advisable to establish your LLC there. While many sources discuss tax benefits and advantages of different states, these don’t apply if it’s not your state of residence and business operations.
For instance, forming an LLC in Delaware while living and doing business in Tennessee means you must also register your Delaware LLC in Tennessee, incurring additional fees and still paying Tennessee taxes. This results in higher costs and complications without any benefits.
In conclusion, if you reside and operate in Tennessee, it’s a good state to start a business. If not, then it might not be suitable.
Real estate exception: If you’re acquiring real estate outside Tennessee, form your LLC in the state where the property is situated.
For more information, consult Best State to Form an LLC.

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