How to Start an LLC in Tennessee (2026)
Filing your Tennessee LLC costs $300 with the Secretary of State, and approval typically takes 3 to 5 business days. Here's everything you need to do, from picking a name to opening your business bank account.
In This Article
What You'll Learn in This Guide
This guide walks you through every step to legally form a Limited Liability Company (LLC) in Tennessee — from picking a name to staying compliant year after year. We've kept it practical, current, and free of unnecessary fluff.
Note
Tennessee LLC formation costs $300 in state fees. Most founders complete the process in Immediate to same-day, either DIY or through a formation service starting at $0.
Tennessee LLC: Quick Facts
Last Verified: Feb 2026- Filing Fee (Online)
- $300
- Processing Time
- Immediate to same-day
- Expedited Available
- No
- Annual Report
- $300*
- State Income Tax
- No
- Sales Tax Rate
- 7%
- Filed With
- Tennessee Secretary of State,…**
- Last Verified
- February 21, 2026
* Annual Report: $300, due On or before the first day of the fourth month following the end of the LLC's fiscal year.
** Filed With: Tennessee Secretary of State, Business Services Division
What You Need to Know About Forming an LLC in Tennessee
A Tennessee LLC separates your personal finances from your business. If your company takes on debt or gets sued, your house, car, and savings are generally off limits. That protection only holds up if you treat the LLC as a real, separate entity, which starts with forming it correctly.
Tennessee's $300 filing fee is higher than many states, and you'll pay another $300 each year for the annual report. The state also has no personal income tax, but LLCs are subject to a franchise tax and an excise tax on net earnings. These are important to understand before you launch.
The process itself is straightforward. You'll reserve a business name, appoint a registered agent, file your articles of organization, grab an EIN from the IRS, put together an operating agreement, and open a business bank account. Most founders can complete the entire process within a week or two.
Choose a Name for Your Tennessee LLC
Your LLC name must be unique in Tennessee and follow the state's naming rules. You can search available names for free and reserve yours for 120 days.
Tennessee requires every LLC name to be distinguishable from any existing business registered with the Secretary of State. You can check availability using the state's free business entity search at tncab.tnsos.gov/business-entity-search. If you find a name you want but aren't ready to file yet, you can reserve it for 120 days for a $20 fee.
Search available names →Tennessee LLC Naming Rules
Optional Name Reservation
- Search for your name at the Tennessee business entity search
- File a name reservation application ($20 fee)
- Name is held for 120 days while you prepare your formation documents
State Specific
Tennessee lets you reserve a name for 120 days for just $20, which is longer than most states offer.
Pro Tip
Search the Tennessee business name database before you get attached to a name. It takes 30 seconds and saves you a rejected filing.
Choose a Registered Agent in Tennessee
Tennessee requires every LLC to have a registered agent with a physical street address in the state. This person or company receives legal and government documents on your behalf.
Your registered agent is the official point of contact between your LLC and the state of Tennessee. If your company is ever served with a lawsuit or receives important tax notices, they go to your registered agent's physical address. This person or entity must be available during normal business hours at a Tennessee street address.
Your Three Options
- Be your own registered agent (you need a Tennessee street address and must be available during business hours)
- Appoint a trusted person in Tennessee (a friend, family member, or colleague who agrees to accept documents for you)
- Hire a professional registered agent service (typically $50 to $300 per year, keeps your home address off public records)
State Specific
Your registered agent must be a Tennessee resident or a business entity authorized to operate in the state. P.O. Boxes are not accepted.
File Your Articles of Organization with Tennessee
This is the official step that creates your LLC. You'll file Form SS-4270 with the Tennessee Secretary of State, Business Services Division.
To form your LLC, you'll file the Articles of Organization (Form SS-4270) with the Tennessee Secretary of State, Business Services Division. You can file online through the state's portal or submit a paper form by mail. The filing fee is $300 regardless of which method you choose. Your articles will include your LLC name, registered agent information, principal office address, and the name of the person organizing the LLC.
File Online
File by Mail
State Specific
Tennessee LLCs are also subject to an annual franchise tax (minimum $100) and an excise tax of 6.5% on net earnings. These are separate from the $300 annual report fee, so plan your budget accordingly.
Pro Tip
Most businesses in Tennessee also need a business tax license from the Department of Revenue. The initial registration fee is $15, paid to your local county or municipal clerk.
Recommended: ZenBusiness
Beginner-friendly LLC formation with transparent pricing and a free starter option. From $0 + state fees.
Get an EIN from the IRS
Your EIN is a federal tax ID number for your LLC. You'll need it to open a bank account, hire employees, and file taxes.
Apply for your EIN directly on the IRS website at no cost. The online application takes about 10 minutes, and you'll receive your number immediately. You'll need your EIN before you can open a business bank account or set up payroll if you plan to hire.
Apply for your EIN on IRS.gov →Create an Operating Agreement for Your Tennessee LLC
Tennessee doesn't require an operating agreement by law, but having one protects your liability shield and prevents disputes between members.
An operating agreement is an internal document that lays out how your LLC is owned, managed, and run. Tennessee does not require you to file one with the state, but banks, investors, and courts may ask to see it. Without one, your LLC defaults to Tennessee's LLC Act, which may not match how you actually want to run your business.
Key Sections to Include
Pro Tip
Even single-member LLCs should have an operating agreement. It reinforces the legal separation between you and your business, which is the whole point of forming an LLC.
Open a Business Bank Account
A dedicated business account keeps your personal and LLC finances separate, which is essential for maintaining your liability protection in Tennessee.
Once your LLC is approved and you have your EIN, open a business checking account in your LLC's name. This is one of the simplest but most important steps for protecting yourself. Every business expense and payment should flow through this account, not your personal one.
What to Bring to the Bank
- Your filed and approved Articles of Organization
- Your EIN confirmation letter from the IRS
- A government-issued photo ID
- Your operating agreement (some banks require this)
- An initial deposit (amount varies by bank)
Important
Mixing personal and business funds can lead to "piercing the corporate veil," which means a court could hold you personally liable for your LLC's debts. Keep your finances completely separate from day one.
Top 3 LLC Formation Services
We've independently reviewed the top LLC formation services in Tennessee. Here's how they compare.
| Feature | ZenBusiness Best Overall Value | Northwest Registered Agent Best Privacy | Tailor Brands Best for Branding |
|---|---|---|---|
| Starting Price | $0 + state fees | $39 + state fees | $0 + state fees |
| Formation Speed | 1-10 business days | Same-day filing | 2-14 business days |
| Support | Phone, Chat, Email | Lifetime Corporate Guides | Phone, Chat, Email |
| States Covered | 50 states | 50 states | 50 states |
| In Business Since | 2015 | 1998 | 2014 |
| Get Started → | Get Started → | Get Started → |
Frequently Asked Questions
What to Do Next
Once your Tennessee LLC is approved, take these steps to set your business up for success.
Get an EIN
Apply for free in about 10 minutes at IRS.gov — required before opening a bank account or hiring anyone.
Open a Business Bank Account
Keep personal and business finances separate from day one. Bring your EIN, Articles of Organization, and a government ID.
Create an Operating Agreement
Even if Tennessee does not require one, an operating agreement protects your liability shield and defines how the LLC is managed.
File Your Annual Report
Set a calendar reminder now. Missing your Annual Report deadline can result in late fees or administrative dissolution.
Ready To File?
Start your Tennessee LLC with ZenBusiness — guided filing and compliance support included.
About the Author
Legal & Compliance Analyst
Daniel grew up in the shadow of Silicon Valley but chose the legal route over engineering, working as a paralegal for a corporate law firm specializing in mergers and acquisitions. He realized that early-stage founders were constantly making catastrophic legal mistakes because they couldn't afford a $500/hour attorney, prompting his move to B2B media.
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