--- title: "How to Start an LLC in Tennessee (2026)" canonical: https://startupowl.com/start/tennessee-llc last_updated: "September 16, 2026" --- # How to Start an LLC in Tennessee (2026) Tennessee charges $50 per LLC member to file, with a $300 minimum. See the filing steps, naming rules, annual report cost, and state taxes. ## Tennessee LLC Quick Facts | Fact | Value | | --- | --- | | Filing Fee (Online) | $300 minimum | | Processing Time | Immediate to same-day | | Expedited Available | No | | Annual Report | $300 minimum, due On or before the first day of the fourth month following the end of the LLC's fiscal year. | | State Income Tax | No | | Sales Tax Rate | 7% | | Filed With | Tennessee Secretary of State, Business Services Division | | Last Verified | September 16, 2026 | Filing your Tennessee LLC costs $300 if it has one to six members. The state charges $50 per member. The floor is $300 and the cap is $3,000, so a seven member LLC pays $350. Only one state charges more to form an LLC. Online filings clear the same day. Mail takes 3 to 5 business days. ## 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 formation fee starts at $300. Only one state charges more. The annual report uses the same rate, $50 per member, with the same $300 floor and $3,000 cap. So $300 is what a one to six member LLC pays. Tennessee has no personal income tax. LLCs do owe a franchise tax of at least $100 a year, plus a 6.5% excise tax on net earnings. 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 Step 1 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 →](https://tncab.tnsos.gov/business-entity-search) **Tennessee LLC Naming Rules** - Must include "LLC," "L.L.C.," or "Limited Liability Company" - Must be distinguishable from any existing registered business name - Cannot include words that imply it is a bank, insurance company, or government agency without proper licensing - Cannot include restricted professional terms without appropriate state approval **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 Step 2 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 Step 3 This is the official step that creates your LLC. You'll file Form SS-4270 with the Tennessee Secretary of State, Business Services Division. Filing Fee (Online): $300 minimum Processing: Immediate to same-day To form your LLC, file the Articles of Organization (Form SS-4270) with the Tennessee Secretary of State, Business Services Division. You can file online or mail a paper form. The fee is the same either way, $50 per member with a $300 minimum and a $3,000 maximum. Your articles name the LLC, its registered agent, the principal office address, and the organizer. **File Online** **Pros** - Fastest turnaround time - Immediate confirmation of submission - File at tncab.tnsos.gov **Cons** - Requires creating an online account - Must pay electronically **File by Mail** **Pros** - Can pay by check or money order - Download the form at sos.tn.gov **Cons** - Processing takes 3 to 5 business days after receipt - Mail transit adds extra time **State Specific** Tennessee LLCs also owe a franchise tax (minimum $100) and a 6.5% excise tax on net earnings. Those are separate from the annual report fee. That fee is also $50 per member, with a $300 minimum. **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. ## Get an EIN from the IRS Step 4 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 →](https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online) ## Create an Operating Agreement for Your Tennessee LLC Step 5 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** - Ownership percentages and each member's capital contributions - How profits and losses are divided among members - Management structure (member-managed or manager-managed) - Voting rights and decision-making procedures - Rules for adding or removing members - What happens if a member leaves, dies, or becomes incapacitated - Process for dissolving the LLC **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 Step 6 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. ## Federal BOI Reporting No. FinCEN exempted every company formed in the United States from beneficial ownership reporting in an interim final rule published 26 March 2025 and applied from 21 March 2025, then made that exemption permanent in a final rule published 11 August 2026 and effective 14 August 2026. Only entities formed under foreign law and registered to do business in a US state still report. ## Frequently Asked Questions ### How much does it cost to start an LLC in Tennessee? The state filing fee is $50 per member. The minimum is $300 and the maximum is $3,000, so a one to six member LLC pays $300 to file. The annual report uses the same rate every year after that. A registered agent service costs $50 to $300 a year if you use one. Tennessee also charges a franchise tax of at least $100 a year. ### How long does it take to get an LLC approved in Tennessee? Mail filings are processed in 3 to 5 business days after the Secretary of State receives your documents. Online filings through the state portal are typically faster. Add a few extra days for mail transit time if you submit a paper form. ### Can one person own an LLC in Tennessee? Yes. Tennessee fully allows single-member LLCs. You'll go through the same formation process as a multi-member LLC. For federal tax purposes, a single-member LLC is treated as a disregarded entity and taxed like a sole proprietorship unless you elect otherwise. ### Does Tennessee require an operating agreement for an LLC? No, Tennessee does not legally require an operating agreement. However, it is strongly recommended. An operating agreement defines ownership, management structure, and profit distribution. Without one, your LLC defaults to the rules in Tennessee's LLC Act, which may not align with your intentions. ### What taxes does a Tennessee LLC pay? Tennessee has no personal income tax, so LLC profits passed through to members are not taxed at the state level as income. However, Tennessee does impose a franchise tax of 0.25% on the greater of net worth or the book value of property used in the state (minimum $100) and an excise tax of 6.5% on net earnings. The state sales tax rate is 7% if you sell taxable goods or services. ### Does a Tennessee LLC need to file an annual report? Yes. Every Tennessee LLC files an annual report with the Secretary of State. The fee is $50 per member, with a $300 minimum and a $3,000 maximum. That is the same rate as the formation fee. It is due on the first day of the fourth month after your fiscal year ends, so April 1 for most LLCs. There is no late fee. But the state can start dissolving your LLC two months after the deadline. Changing your registered agent on the report adds $20. ## What to Do Next - [Get an EIN](https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online), 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. - [Paying contractors](https://startupowl.com/setup/contractor-vs-employee#by-business-type), Tennessee has no personal income tax, so there is no state 1099-NEC to file. The federal $2,000 rule is the only one you track.