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How to start an LLC in Tennessee

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Starting an LLC in Tennessee is fast, but it is not especially cheap. The filing fee is $50 per member, with a $300 minimum and a $3,000 maximum, and you file Articles of Organization with the Tennessee Secretary of State through TNBear. Online filings are processed immediately, there is no publication requirement, and every LLC files an Annual Report using the same $300 minimum fee formula. The big Tennessee warning: no personal income tax does not mean no entity-level tax. LLCs are generally subject to Tennessee franchise and excise tax, so budget beyond the formation filing.

Best next step

For most founders, start with the Tennessee filing itself

If you live and operate in Tennessee, the safest move is to file in Tennessee directly. Compare LLC services only if you want help with privacy, document handling, or someone to do the filing for you.

Safest default
File directly with Tennessee Secretary of State, Division of Business Services if you live and operate in Tennessee.
Cheaper viable option
Handle the filing yourself if you're comfortable managing the registered agent role and the state paperwork.
Avoid overpaying
Don't buy bundled extras until you confirm the filing fee, the annual schedule, and whether a service actually solves a problem for you.
See official filing instructions Compare LLC services
Filing fee
$50/member; $300 minimum, $3,000 maximum
Tennessee uses a per-member LLC filing fee. Most 1-6 member LLCs pay the $300 minimum; larger member groups pay $50 per member up to the $3,000 cap.
Processing time
Instant online
Standard estimate.
Annual report
1st day of the 4th month after fiscal year close
April 1 for calendar-year LLCs. The Annual Report is filed with the Secretary of State and is separate from Tennessee Department of Revenue franchise and excise tax filings.
Publication
None
No newspaper requirement

Official Tennessee resources

Primary filing source

Start here

File your Tennessee LLC online (TNBear)

Open this first. It's the official source for the filing itself.

tnbear.tn.gov

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How to form an LLC in Tennessee

The core steps most founders work through to form an LLC in Tennessee.

Before you file

What you'll need

To form a Tennessee LLC, you'll need a unique business name, a registered agent with a physical Tennessee street address, a principal office address, your fiscal year-end month, management structure, organizer information, member count for fee calculation, and at least $300 for the state filing fee.

  1. Step 1 of 8: Choose a Tennessee-compliant LLC name

    Your name must be distinguishable on Tennessee Secretary of State records and include an approved designator such as Limited Liability Company, LLC, or L.L.C. It cannot include corporation or incorporated, and words tied to banking, trust, insurance, or similar regulated industries can require pre-approval. Search TNBear before you file. If you are ready to file soon, skip the $20 name reservation because approval of the Articles locks in the name.

  2. Step 2 of 8: Appoint a Tennessee registered agent

    Tennessee uses the term registered agent, with a registered office for the address. The agent must have a physical Tennessee street address; PO boxes and addresses that fail deliverability checks can get the filing rejected. You can serve yourself, use another Tennessee resident, use a Tennessee-authorized business entity, or in Tennessee the LLC itself may serve as its own registered agent. The tradeoff is privacy: the registered office address becomes public.

  3. Step 3 of 8: File Articles of Organization through TNBear

    File Articles of Organization - Limited Liability Company, Form SS-4270, with the Tennessee Secretary of State. The cleanest path is TNBear online filing because approval is immediate or same-day. You will provide the LLC name, registered agent and registered office, principal office, fiscal year-end month, management structure, organizer signature, and member count if it affects the fee. Tennessee does not require member or manager names on the Articles, which is a real privacy advantage.

  4. Step 4 of 8: Pay the Tennessee LLC filing fee

    The filing fee is $50 per member, with a $300 minimum and a $3,000 maximum. Most 1-6 member LLCs pay the $300 minimum. Online payments add a convenience fee: 2.29% for credit or debit cards, or a flat $0.95 for e-check. For a multi-member LLC near the $3,000 cap, e-check can save meaningful money compared with a card payment.

  5. Step 5 of 8: Download approval and skip publication

    Online filings are usually approved as soon as payment processes, and you can download or receive the approval record electronically. Mail filings take about 3 to 5 business days after the state receives them, plus mail time. Tennessee does not offer a paid expedited LLC filing tier, and it does not require newspaper publication after formation.

  6. Step 6 of 8: Get a free EIN from the IRS

    Apply directly with the IRS for an EIN after the LLC is approved. The EIN is free and usually immediate online during IRS availability hours. Even if a single-member LLC could use the owner SSN for some federal purposes, banks, tax accounts, and clean business records make an EIN the practical default. Do not pay a formation service extra for this unless you are deliberately paying for convenience.

  7. Step 7 of 8: Create a Tennessee operating agreement

    Tennessee does not require an operating agreement to be filed with the state, but you should still have one. It should cover ownership, voting, manager authority, distributions, tax elections, transfers, member exits, and dissolution. Without a written agreement, Tennessee statutory defaults fill the gaps, and those defaults may not match what the founders intended. For a Series LLC, the operating agreement is especially important because it must support separate records and assets for each series.

  8. Step 8 of 8: Handle taxes, licenses, and the Annual Report

    Register through TNTAP if you need Tennessee tax accounts for franchise and excise tax, sales tax, or business tax. Tennessee business license rules are tied to gross receipts by county or city jurisdiction, not a single statewide license. File the Tennessee Annual Report through TNCaB every year by the 1st day of the 4th month after your fiscal year closes. The Annual Report starts at $300 and does not replace franchise and excise tax filings with the Department of Revenue.

Tennessee LLC cost breakdown

See the upfront cost, the likely add-ons, and where the total climbs past the bare filing fee.

Item Cost Required?
Articles of Organization (Form SS-4270) $50/member; $300 minimum, $3,000 maximum Yes
Online payment surcharge 2.29% card or $0.95 e-check If filing online
Expedited filing N/A Not offered
Name reservation $20 Optional
Assumed name / DBA $20 Optional
Registered agent service $50-$300/yr Optional
EIN Free Recommended
Operating agreement Free if you draft it yourself Recommended
Annual Report $50/member; $300 minimum, $3,000 maximum Yes (recurring)
Registered agent change on Annual Report +$20 Only if changing
Franchise tax 0.25% of net worth; $100 minimum Usually
Excise tax 6.5% of net earnings Usually if taxable earnings
Minimal activity license $15 Conditional
Total (bare minimum DIY, year 1) ~$301-$307 upfront + $100 minimum franchise tax when due —
Total (typical with commercial agent) ~$525-$550+ first year —
Total (typical recurring) ~$400-$540+/yr before excise tax —

Tennessee tax and compliance notes

This is where Tennessee gets less simple than the filing itself. The state-specific issues that generic LLC guides usually skip.

Tennessee LLCs are generally subject to franchise and excise tax by default. The franchise tax is 0.25% of Tennessee-apportioned net worth, with a $100 minimum, and the excise tax is 6.5% of net earnings. A $50,000 excise tax standard deduction applies for tax years ending on or after December 31, 2024, but it does not erase the minimum franchise tax.

Tennessee repealed the franchise tax property measure for tax years ending on or after January 1, 2024. The franchise tax is now based on net worth, which matters most for LLCs holding Tennessee real estate, equipment, or other in-state assets.

The Family-Owned Non-Corporate Entity exemption can be important for some passive family-owned LLCs, especially rental-property entities. It is not automatic, it has ownership and income requirements, and it requires a Tennessee Department of Revenue filing.

Business tax and local business licenses are separate from LLC formation. Below $3,000 in jurisdictional gross receipts, no license is required. From $3,001 to $99,999, a $15 minimal activity license may apply. At $100,000 or more, a standard business license and a state business tax return may apply.

Tennessee has no personal income tax, and the Hall income tax has been repealed. That helps individual owners, but it does not make Tennessee a no-tax LLC state because the franchise and excise tax system applies at the entity level.

Tennessee vs other LLC states

The simple comparison most founders actually want. Watch the ongoing state cost column. That's where states with cheap filing fees can still get expensive.

State Annual report Upfront cost Ongoing state cost
Tennessee This page
$50/member, $300-$3,000, due 1st day of 4th month after fiscal year close $300 minimum $300 minimum Annual Report + $100 minimum franchise tax + excise tax if applicable
North Carolina
$200 due April 15 $125 $200/yr
Florida
$138.75 due May 1 $125 $138.75/yr
Texas
Public Information Report + Franchise Tax Report $300 $0 for most small LLCs below the no-tax-due threshold
Wyoming
$60 minimum, due 1st day of anniversary month $100 $60 minimum

Tennessee LLC pros and cons

Quick tradeoffs. Where Tennessee helps, where it adds friction, and what to watch before you file.

What works

  • Online filing through TNBear is immediate or same-day, so most founders do not need to wait on mail processing.
  • Tennessee has no LLC publication requirement, which keeps formation simpler and more predictable.
  • Member and manager names are not required on the Articles of Organization, giving Tennessee better public-record privacy than many states.
  • Tennessee has no personal income tax, and the Hall income tax has been repealed.
  • Tennessee authorizes Series LLCs and PLLCs for founders who need those structures.

Watch out for

  • The $300 minimum filing fee is high, and the $50/member formula gets expensive for multi-member LLCs.
  • The Annual Report repeats the same $300 minimum and $3,000 cap every year.
  • Franchise and excise tax apply to LLCs by default, including a $100 minimum franchise tax.
  • Local business tax and business license rules add another compliance layer after formation.
  • No paid expedited filing tier is offered, so paper filers are stuck with standard mail processing.

Other state guides

If Tennessee isn't the right fit, these guides cover the other states most first-time founders compare it against.

FAQ

The questions people ask right before they decide to file on their own or pay a service.

How much does it cost to start an LLC in Tennessee?

The Tennessee LLC filing fee is $50 per member, with a $300 minimum and a $3,000 maximum. Most 1-6 member LLCs pay the $300 minimum. Online filings also add a payment surcharge: 2.29% for card payments or $0.95 for e-check.

What is the Tennessee LLC filing fee?

The filing fee for Tennessee Articles of Organization is $50 per member. Tennessee sets a $300 floor and a $3,000 cap, which makes it unusually expensive for multi-member LLCs compared with many nearby states.

How long does it take to get a Tennessee LLC?

Online filings through TNBear are processed immediately or the same business day. Mail filings take about 3 to 5 business days after the state receives them, plus mail transit, so 2 to 3 weeks is a safer estimate if you mail the form.

Does Tennessee offer expedited LLC filing?

No. Tennessee does not offer a paid expedited LLC filing tier. Online filing is already the fastest route and is generally processed immediately, so mailing the filing is the only real slowdown to avoid.

What is a Tennessee registered agent?

A Tennessee registered agent receives lawsuits, service of process, and official notices for the LLC. The agent must have a physical Tennessee street address called the registered office. PO boxes are not accepted, and the registered office becomes part of the public record.

Can I be my own registered agent in Tennessee?

Yes, if you have a qualifying Tennessee street address and can reliably receive legal notices. Tennessee also allows the LLC itself to serve as its own registered agent, which is unusual. The practical tradeoff is privacy because the registered office address is public.

Does Tennessee require an operating agreement?

No. Tennessee does not require a standard LLC to file or maintain an operating agreement as a formation condition. You should still create one because it controls ownership, voting, distributions, manager authority, transfers, and what happens when a member leaves.

Does Tennessee require an annual report for LLCs?

Yes. Tennessee LLCs file an Annual Report with the Secretary of State by the 1st day of the 4th month after the LLC fiscal year closes. For calendar-year LLCs, that means April 1.

How much is the Tennessee LLC Annual Report?

The Annual Report uses the same per-member formula as formation: $50 per member, with a $300 minimum and a $3,000 maximum. This is one of the most important Tennessee LLC costs because it repeats every year.

Does Tennessee require LLC publication?

No. Tennessee does not require new LLCs to publish a formation notice in a newspaper. Once the Articles are approved, there is no separate publication step.

How is a Tennessee LLC taxed?

Federally, a Tennessee LLC usually defaults to pass-through taxation. At the Tennessee level, LLCs are generally subject to franchise tax and excise tax at the entity level, even though Tennessee has no personal income tax.

Does a Tennessee LLC need a business license?

Maybe. Tennessee does not issue one blanket statewide license for every LLC, but business tax rules can require a local minimal activity license or standard business license based on gross receipts by jurisdiction. Industry-specific permits, sales tax registration, and employer registrations may also apply.

Can a nonresident start a Tennessee LLC?

Yes. Tennessee does not require members, managers, or organizers to live in the state. The LLC still needs a registered agent with a physical Tennessee street address.

Should I form in Tennessee or another state?

If your business is based in Tennessee, forming in Tennessee is usually the practical default. Forming in Wyoming or Delaware will not erase Tennessee tax, licensing, or foreign registration obligations if you actually operate from Tennessee.