How to Start an LLC in Tennessee
Florida LLC Deadlines
- Annual Report: Due May 1 each year (Late fee: $400 if filed after May 1)
- EIN: Apply after LLC approved
- Registered Agent: Required from day one
START YOUR Tennessee LLC
How to Start an LLC in Tennessee (2026 Guide)
Starting a Tennessee LLC is one of the most effective ways to launch a business while helping protect your personal assets.
This 2026 Tennessee LLC guide explains exactly how to:
- form an LLC in Tennessee
- file Tennessee Articles of Organization
- file with the Tennessee Secretary of State
- choose a Tennessee registered agent
- understand Tennessee LLC costs and ongoing compliance requirements
- obtain an EIN from the IRS
- avoid common Tennessee LLC mistakes
- stay compliant after your business is formed
Whether you're starting a retail business, construction company, professional services firm, healthcare practice, restaurant or hospitality business, administrative services company, manufacturer, real estate business, wholesaler, finance or insurance firm, transportation or warehousing company, arts and entertainment business, educational organization, or growing startup, this guide walks through the Tennessee LLC formation process step by step.
Last updated: Jul 2026. Reviewed for accuracy against current Tennessee Secretary of State filing requirements and applicable state fee schedules.
Tennessee LLC quick facts
| State Filing Fee | $300 minimum to file Articles of Organization (additional fees apply for LLCs with more than six members) |
| Processing Time | Typically processed within a few business days when filed online; mailed filings generally take longer |
| State Income Tax | Tennessee does not impose a state individual income tax on wages or ordinary pass-through LLC income |
| Annual Filing Requirement | Annual Report required each year |
| Registered Agent | Required with a physical Tennessee address |
| Operating Agreement | Not required by state law but recommended |
| EIN | Required for most LLCs — free from IRS |
Ready to start your Tennessee LLC?
BizUp handles the filing, registered agent, EIN, operating agreement, and ongoing compliance — all in one place.
Start Your Tennessee LLC
Is Tennessee a Good State to Start an LLC?
Tennessee offers entrepreneurs a diverse and growing economy supported by industries including retail, construction, professional services, healthcare, hospitality, manufacturing, transportation and warehousing, wholesale trade, finance and insurance, real estate, education, arts and entertainment, and administrative services. Its central location, business-friendly environment, expanding workforce, and strong transportation infrastructure continue to attract businesses across many sectors.
Businesses throughout Nashville, Memphis, Knoxville, Chattanooga, Clarksville, Murfreesboro, Franklin, Johnson City, Jackson, Kingsport, and communities across the Volunteer State benefit from access to major interstate highways, rail networks, inland ports, and a steadily growing customer base.
A Tennessee LLC provides liability protection, flexible tax treatment, and a scalable business structure while helping separate your personal and business assets. The Tennessee Secretary of State offers an online filing system that makes it relatively straightforward for entrepreneurs to establish their businesses.
Tennessee requires LLCs to file an Annual Report each year to remain in good standing. Businesses must also maintain a registered agent, comply with applicable tax laws, renew required licenses and permits, and keep required business information current.
For many founders, Tennessee's pro-business climate, strategic location, and broad range of business opportunities make it an attractive place to start and grow a business.
What Is a Tennessee LLC?
A Tennessee LLC (Limited Liability Company) is a legal business structure that helps separate your personal assets from your business liabilities while providing flexible management and tax treatment.
Business owners choose Tennessee LLC formation because it offers:
- Personal liability protection for business debts and lawsuits
- Pass-through taxation by default
- Flexible ownership and management structures
- Professional credibility with customers, lenders, and vendors
- Straightforward filing through the Tennessee Secretary of State
- Flexibility as your business grows
A Tennessee LLC can be an excellent choice for retail businesses, construction companies, professional service firms, healthcare providers, restaurants and hospitality businesses, administrative service providers, manufacturers, wholesalers, transportation companies, finance and insurance firms, real estate businesses, educational organizations, and arts and entertainment businesses seeking legal protection without the complexity of forming a corporation.
Tennessee's economy supports businesses ranging from independent consultants and contractors to healthcare practices, manufacturers, logistics providers, retailers, real estate companies, financial professionals, and growing startups. An LLC provides many business owners with a flexible and scalable legal structure that can evolve alongside their company.
If you're looking for a business structure that offers liability protection while remaining flexible and positioned for long-term growth, forming an LLC in Tennessee is often one of the best ways to launch your business.
Who Should Consider Starting a Tennessee LLC?
A Tennessee LLC works well for many different types of businesses, including:
- Retail businesses
- Construction companies and skilled trades
- Professional service firms
- Healthcare providers
- Restaurants, catering, and hospitality businesses
- Administrative, support, and waste management businesses
- Manufacturers
- Real estate investors, brokers, and property managers
- Wholesalers
- Finance and insurance firms
- Transportation and warehousing companies
- Arts, entertainment, and recreation businesses
- Educational organizations
- Consultants and freelancers
- Startups and growing companies
- Side businesses transitioning into full-time operations
Entrepreneurs choose Tennessee LLC formation because it combines relatively simple management requirements with separation between personal and business liabilities and flexible tax treatment.
Single-member LLCs are also common throughout Tennessee for solo business owners seeking greater legal protection and credibility than operating as a sole proprietorship.
A Tennessee LLC may be especially attractive for businesses planning to hire employees, open business bank accounts, separate personal and business finances, establish credibility with customers, pursue financing opportunities, and expand operations over time.
Whether you're launching a local business in Tennessee or building a company with plans to expand throughout the Southeast or nationally, forming an LLC provides a strong legal foundation for long-term success.
Why Start an LLC in Tennessee?
Tennessee offers entrepreneurs access to a growing and diverse economy with opportunities across retail, construction, professional services, healthcare, hospitality, manufacturing, transportation and warehousing, wholesale trade, finance and insurance, real estate, education, arts and entertainment, and administrative services.
Its central location, favorable business climate, strong logistics network, and expanding workforce make Tennessee an attractive place to launch and grow a business.
1. Personal Liability Protection
A Tennessee LLC creates a legal separation between you and your business. In many situations, this means your personal assets — including your home, savings, and personal property — are generally protected if your business faces lawsuits or debts.
This liability protection is one of the primary reasons entrepreneurs choose an LLC instead of operating as a sole proprietorship.
2. Flexible Business Structure
Tennessee LLCs provide flexibility in how the business is owned, managed, and taxed. Whether you're starting a solo consulting practice or building a multi-member company, an LLC can adapt as your business evolves.
3. Pass-Through Tax Treatment
By default, Tennessee LLCs receive pass-through taxation, meaning business profits generally pass through to the owners' individual federal tax returns instead of being taxed at both the business and personal levels.
As your business grows, you may also have the option to elect S Corporation tax treatment if it becomes advantageous.
Although Tennessee does not impose a state income tax on wages or ordinary pass-through income earned by individuals, LLC owners may still be responsible for federal income taxes, self-employment taxes, employer taxes, franchise and excise taxes (when applicable), and other business-related tax obligations depending on the nature of the business.
4. A Strong Fit for Many Industries
Tennessee LLCs work well across many industries, including retail trade, construction, professional, scientific, and technical services, health care and social assistance, accommodation and food services, administrative, support, and waste management, manufacturing, real estate and rental and leasing, wholesale trade, finance and insurance, transportation and warehousing, arts, entertainment, and recreation, and educational services. Whether you're launching your first business or expanding an existing operation, an LLC offers flexibility in ownership, taxation, and day-to-day management.
5. A Straightforward Formation Process
Tennessee makes it relatively simple to form and maintain an LLC through the Tennessee Secretary of State. While LLCs must file an Annual Report each year to remain in good standing, the ongoing compliance process is generally straightforward when deadlines are met.
A Tennessee LLC provides a flexible legal structure that can help support your business as it grows while maintaining liability protection and adaptable tax options.
Tennessee LLC vs. Sole Proprietorship
If you're currently operating as a sole proprietor, forming a Tennessee LLC can be one of the most important steps toward protecting yourself and formalizing your business.
| Feature | Tennessee LLC | Sole Proprietorship |
|---|---|---|
| Personal liability protection | Yes | No |
| Separate legal entity | Yes | No |
| Business credibility | Higher | Lower |
| Easier to add partners later | Yes | Limited |
| State formation filing required | Yes | No |
| Registered agent required | Yes | No |
The biggest difference between a Tennessee LLC and a sole proprietorship is liability protection.
A sole proprietorship does not legally separate the owner from the business. If the business is sued or cannot pay its debts, the business owner's personal assets may be at risk. Forming a Tennessee LLC creates a legal separation between you and your business from day one.
For retail businesses, construction companies, professional service firms, healthcare providers, restaurants and hospitality businesses, administrative service providers, manufacturers, wholesalers, transportation companies, finance and insurance professionals, arts and entertainment businesses, educational organizations, and real estate businesses, an LLC is often viewed as the logical next step beyond operating as a sole proprietorship.
How to Start an LLC in Tennessee
Follow these steps to form your Tennessee LLC.
Step 1: Choose Your Tennessee LLC Name
Your LLC name must be distinguishable from other registered businesses in Tennessee and must include one of the following:
- LLC
- L.L.C.
- Limited Liability Company
Before filing, search the Tennessee Secretary of State business database to confirm your desired business name is available.
If you'd like additional time before filing, Tennessee allows you to reserve a business name by filing an Application for Reservation of Limited Liability Company Name and paying the applicable filing fee. A name reservation is generally valid for four months.
Best practices before filing:
- Verify Tennessee name availability
- Check domain name availability
- Search the USPTO trademark database
- Avoid restricted words unless properly authorized
BizUp helps you start with the right name
Every plan includes company name verification before filing to help reduce delays caused by unavailable names.
View Tennessee LLC Plans
Step 2: Appoint a Registered Agent
Every Tennessee LLC must designate a registered agent.
A registered agent receives legal documents, service of process, and official government correspondence on behalf of your business.
Your registered agent may be:
- An individual Tennessee resident
- A business entity authorized to provide registered agent services in Tennessee
The registered agent must:
- Maintain a physical street address in Tennessee (P.O. Boxes alone are not permitted)
- Be available during normal business hours
- Consent to serving as your LLC's registered agent
A professional registered agent can help:
- Receive legal documents promptly
- Protect your privacy by using a business address instead of your home address
- Help keep your business compliant with state requirements
BizUp includes registered agent service free during the first year on all plans.
Step 3: File Your Tennessee Articles of Organization
The Articles of Organization officially create your Tennessee LLC. Tennessee allows LLCs to file online or by mail with the Tennessee Secretary of State.
Information you'll generally provide includes:
- LLC name
- Registered agent information
- Principal business address
- Management structure (member-managed or manager-managed)
- Organizer information
Tennessee Articles of Organization filing fee: $300 minimum when filing online or by mail for LLCs with up to six members. Additional state filing fees apply for LLCs with more than six members.
Once approved by the Tennessee Secretary of State, your LLC officially exists as a legal business entity.
Step 4: Create an Operating Agreement
Tennessee does not legally require LLCs to adopt an operating agreement, but creating one is strongly recommended.
An operating agreement establishes how your LLC will operate and can help prevent disputes as your business grows.
A typical operating agreement addresses:
- Ownership percentages
- Member responsibilities
- Voting procedures
- Profit distributions
- Admitting or removing members
- Dissolution procedures
Even single-member LLCs benefit from maintaining a written operating agreement because it helps reinforce the legal separation between the owner and the business.
BizUp includes a customized operating agreement in the Growth and Complete plans.
Step 5: Obtain an EIN
An Employer Identification Number (EIN) is your business's federal tax identification number.
Most Tennessee LLCs need an EIN to:
- Open a business bank account
- Hire employees
- File federal taxes
- Establish business credit
- Work with payment processors
The IRS issues EINs at no cost.
BizUp includes EIN registration in the Growth and Complete plans.
Step 6: Open a Business Bank Account
Once your Tennessee LLC has been approved and you've received your EIN, opening a dedicated business bank account is an important next step.
Keeping business and personal finances separate helps:
- Reinforce liability protection
- Simplify bookkeeping
- Improve tax reporting
- Establish business credibility
Banks commonly request approved Articles of Organization, EIN confirmation, an operating agreement (if applicable), and personal identification.
Maintaining separate financial records can also make accounting and tax preparation significantly easier as your business grows.
Step 7: Understand Tennessee Business License and Tax Requirements
Tennessee does not issue one universal statewide business license for every LLC. Depending on your industry, location, and business activities, you may need licenses or permits from state agencies or local governments before beginning operations.
Although Tennessee does not impose a state income tax on wages or ordinary pass-through LLC income earned by individuals, businesses may still be responsible for franchise and excise taxes, sales and use taxes, employer registrations, or industry-specific tax requirements.
Depending on your business, you may also need:
- Local business licenses
- Professional licenses
- Contractor licenses
- Employer tax registrations
- Health or environmental permits
- Industry-specific permits
Business licensing, tax registration, and compliance requirements vary depending on your industry, location, and business activities, making it important to verify which requirements apply before beginning operations.
Step 8: File Your Annual Report
Tennessee requires LLCs to file an Annual Report each year to remain in good standing with the Tennessee Secretary of State.
The Annual Report is generally due by the first day of the fourth month following the close of your LLC's fiscal year.
Failing to file the Annual Report on time may result in your LLC falling out of good standing and could eventually lead to administrative dissolution if the filing remains delinquent.
Keeping up with this annual requirement is one of the most important ongoing compliance responsibilities for Tennessee business owners.
Ready to Start Your Tennessee LLC?
BizUp can handle your Tennessee LLC formation, registered agent service, EIN registration, operating agreement, and ongoing compliance tools — all through one streamlined dashboard.
Start Your Tennessee LLCHow Much Does It Cost to Start an LLC in Tennessee?
Tennessee offers entrepreneurs a straightforward LLC formation process with predictable startup costs and ongoing compliance requirements. Here's a general breakdown of common Tennessee LLC formation costs:
| Item | Amount | Frequency |
|---|---|---|
| Tennessee Articles of Organization | $300 minimum* | One-time |
| Name reservation (optional) | $20 | One-time |
| EIN registration | Free (IRS) | One-time |
| Operating agreement | Varies / included in paid plans | One-time |
| Registered agent service | Included 1st year (BizUpUSA) | Annual |
| Business licenses and permits | Varies by business and location | Varies |
| Annual Report | $300 minimum* | Annual |
*Tennessee's filing fee is based on the number of LLC members, with a minimum fee of $300 and additional fees for LLCs with more than six members.
Tennessee LLC Ongoing Costs and Compliance Requirements
After your Tennessee LLC is formed, you'll have several ongoing responsibilities to help keep your business in good standing. These may include maintaining a registered agent with a physical Tennessee address, filing the Annual Report each year, renewing applicable business licenses and permits, maintaining accurate business records, filing required federal, state, and local tax returns, and updating the Tennessee Secretary of State when business information changes.
Understanding these ongoing responsibilities is an important part of operating a Tennessee LLC successfully.
Common Tennessee LLC Mistakes to Avoid
Forming a Tennessee LLC is relatively straightforward, but first-time business owners still make avoidable mistakes. Some of the most common include:
Choosing the Wrong Registered Agent
Your registered agent plays an important role in receiving legal notices and official state correspondence. Using someone who is unavailable during business hours or allowing registered agent information to become outdated can result in missed legal documents or compliance issues.
Missing the Annual Report Filing
Tennessee requires LLCs to file an Annual Report each year to remain in good standing. Missing the filing deadline can result in your business falling out of good standing and may eventually lead to administrative dissolution. Setting reminders or using a compliance service can help you stay on track.
Mixing Personal and Business Finances
One of the primary reasons entrepreneurs form an LLC is to separate personal and business liability. Mixing funds can weaken that separation and create accounting and tax complications. Opening a dedicated business bank account immediately after formation is one of the simplest ways to help preserve your LLC's liability protection.
Skipping an Operating Agreement
Although Tennessee does not require an operating agreement, having one establishes clear expectations for ownership, management, voting rights, and profit distributions. Even single-member LLCs benefit from documenting how the business will operate.
Overlooking Business License Requirements
Many entrepreneurs assume forming an LLC automatically authorizes them to begin doing business. Depending on your industry and location, additional licenses or permits may still be required. This is especially important for retail businesses, construction companies, professional service firms, healthcare providers, restaurants and hospitality businesses, administrative, support, and waste management businesses, manufacturers, real estate businesses, wholesalers, finance and insurance firms, transportation and warehousing companies, arts and entertainment businesses, and educational organizations. Requirements vary across Tennessee, making it important to verify state and local regulations before beginning operations.
Assuming There Are No Tennessee Business Taxes
Although Tennessee does not impose a state individual income tax on wages or ordinary pass-through income, many LLCs are still subject to business taxes. Depending on your business activities, you may need to register for franchise and excise taxes, sales and use taxes, employer taxes, or other applicable tax programs. Understanding your obligations early can help avoid penalties and compliance issues.
Not Planning for Taxes Early
Tennessee LLC owners may be responsible for federal income taxes, self-employment taxes, franchise and excise taxes, payroll taxes, sales taxes, or other applicable business taxes depending on the nature of the business. Working with a CPA or tax advisor early can help avoid surprises as your business grows.
Electing S Corporation Status Too Soon
Some business owners immediately elect S Corporation taxation without determining whether it provides a financial benefit. For many new businesses, standard LLC taxation is often the simplest option during the early years. As profits increase, an S Corporation election may become advantageous after consulting with a qualified tax professional.
BizUp Tennessee LLC Pricing
BizUp offers three simple ways to start your Tennessee LLC.
| Plan | Service Fee | Best For |
|---|---|---|
| Starter | $0 + $300 minimum state fee | Founders who want the essentials |
| Growth | $199 + $300 minimum state fee | Founders who want a complete setup |
| Complete | $299 + $300 minimum state fee | Founders who want full support + ongoing compliance |
| What's Included | Starter | Growth | Complete |
|---|---|---|---|
| BizUp Plan (+ state fees) |
$0 | $199 | $299 |
| LLC Formation Filing | |||
| Registered Agent Service (1st year free) | |||
| Company Name Verification | |||
| Fast Track Filing | |||
| EIN (Federal Tax ID) | +$99 | ||
| Operating Agreement | +$99 | ||
| Business Templates | +$199 | ||
| Annual Compliance Filing* | +$149 | +$149 | |
| Expert Review | +$99 | +$99 | |
| Support Level | Standard | Priority | VIP |
*For Tennessee businesses, this service helps owners stay organized by providing compliance reminders, tracking important deadlines, and supporting annual filing obligations, including the Tennessee Annual Report.
Renewal Pricing
Tennessee state filing fees are paid directly to the Tennessee Secretary of State and are separate from BizUp service fees.
For ongoing service and support:
-
Growth renews annually at $199/year for ongoing compliance and support
-
Complete renews annually at $299/year for ongoing compliance and support
BizUp keeps pricing simple and transparent, so you know exactly what to expect for your Tennessee LLC formation.
Start Your Tennessee LLCTennessee Registered Agent Requirements
Every Tennessee LLC must continuously maintain a registered agent.
A registered agent is responsible for receiving legal documents, service of process, and official government correspondence on behalf of your business.
A Tennessee registered agent must:
- Have a physical street address in Tennessee where service of process can be delivered
- Be available during normal business hours
- Consent to serving as your LLC's registered agent
A registered agent may receive service of process, legal notices, official government correspondence, tax and compliance notices, and other important legal communications.
Keeping your registered agent information current helps ensure your business receives important legal documents without unnecessary delays.
Should You Use Your Own Registered Agent in Tennessee?
Tennessee allows business owners to serve as their own registered agent if they meet the state's requirements.
However, many entrepreneurs choose a professional registered agent service to gain:
- Additional privacy
- Reliable document handling
- Compliance support
- Flexibility while traveling or working remotely
Using a professional registered agent also helps prevent legal notices from being delivered to your home or business in front of customers, employees, or clients.
BizUp includes registered agent service free for the first year with every plan
Tennessee LLC Ongoing Compliance Requirements
After your Tennessee LLC is formed, you'll need to meet several ongoing compliance requirements to help keep your business in good standing.
These may include:
- Maintaining a registered agent with a physical Tennessee address
- Filing the Annual Report each year
- Renewing applicable business licenses and permits
- Updating the Tennessee Secretary of State if business information changes
- Filing required federal, state, and local tax returns
- Maintaining accurate business records
Quick Fact: Tennessee requires LLCs to file an Annual Report each year to remain in good standing with the Tennessee Secretary of State. Businesses must also maintain a registered agent, comply with applicable tax laws, renew required licenses and permits, and keep required business information current.
Staying organized and meeting these ongoing obligations can help your LLC remain compliant and avoid unnecessary administrative issues.
BizUp helps founders stay organized by keeping important formation documents, compliance reminders, and business records together in one dashboard.
BizUp's Complete plan includes compliance and filing reminders through the BizUp dashboard.
Tennessee LLC Taxes: What You Need to Know
Tennessee LLCs offer flexible tax treatment while remaining subject to applicable federal, state, and local tax laws.
1. Tennessee Does Not Tax Individual Earned Income
Tennessee does not impose a state individual income tax on wages or ordinary pass-through LLC income earned by individuals.
Most Tennessee LLCs are taxed as pass-through entities, meaning business income generally passes through to the owners, who report it on their federal income tax returns.
LLC owners may still be responsible for federal income taxes, self-employment taxes, and other applicable federal tax obligations.
2. Pass-Through Taxation by Default
By default:
- Single-member LLCs are generally taxed as sole proprietorships
- Multi-member LLCs are generally taxed as partnerships
In most cases, the LLC itself does not pay federal income tax at the entity level. Instead, profits and losses pass through to the LLC owners.
3. Other Tennessee Taxes May Apply
Although Tennessee does not tax individual earned income, many LLCs remain subject to other state taxes. Depending on your business activities, your Tennessee LLC may need to register for:
- Tennessee franchise tax
- Tennessee excise tax
- Sales and use tax
- Employer withholding and unemployment taxes
- Industry-specific tax programs
Businesses selling taxable goods or services, hiring employees, or meeting certain filing thresholds may have additional registration and tax obligations.
4. Business Licenses May Be Required
Tennessee does not issue one universal statewide business license for every LLC.
Depending on your business and location, you may need:
- Local business licenses
- Professional licenses
- Contractor licenses
- Health permits
- Industry-specific approvals
Understanding your licensing and tax obligations before beginning operations can help your business remain compliant from day one.
5. You May Elect S Corporation Tax Treatment Later
As your business becomes more profitable, you may decide — with guidance from your CPA or tax advisor — to elect S Corporation tax treatment.
This is a federal tax election rather than a different business entity.
For some growing businesses, this election may reduce self-employment tax obligations while preserving the liability protection of an LLC.
Why Founders Use BizUp Instead of Filing Directly with the State
You can file your Tennessee LLC directly through the Tennessee Secretary of State, and many business owners do.
However, for first-time founders, the process often becomes more time-consuming after the filing itself — especially when preparing an operating agreement, obtaining an EIN, selecting a registered agent, understanding Tennessee tax obligations, securing any required business licenses, filing the Annual Report, and staying on top of ongoing compliance responsibilities.
BizUp was built to simplify the entire Tennessee LLC formation process in one place.
Instead of juggling state filing requirements, IRS registration, compliance tasks, and business documents on your own, founders can manage business setup and ongoing requirements through a single dashboard designed specifically for new businesses.
With BizUp, you get:
- Tennessee LLC filing handled for you
- Company name verification before submission
- Registered agent service included for the first year
- EIN registration included with Growth and Complete
- Operating agreement included with Growth and Complete
- Real-time status tracking through your founder dashboard
- Secure document storage for your formation records
- Compliance reminders for important business deadlines
- Access to Astra, your built-in AI business copilot
BizUp vs. DIY Filing
| Feature | BizUp | DIY with Tennessee Secretary of State |
|---|---|---|
| Filing prepared and submitted for you | You handle it | |
| Company name check | Manual | |
| Registered agent service included | Separate setup | |
| EIN help | Manual through IRS | |
| Operating agreement | Create it yourself | |
| Compliance reminders | Track it yourself | |
| Document storage | Manage files manually | |
| Founder dashboard | Not included | |
| AI support (Astra) | Not included |
If you're looking for a simpler, more organized way to start and manage your Tennessee LLC, BizUp is designed to help streamline the process from formation through ongoing compliance.
Compare Tennessee LLC PlansStart Your Tennessee LLC with BizUp
Starting a business already comes with enough moving parts. Forming a Tennessee LLC should not add unnecessary confusion, compliance stress, or filing complications.
BizUp simplifies Tennessee LLC formation by helping founders manage filing, registered agent service, EIN registration, operating agreement creation, compliance tracking, and business setup through one streamlined platform.
Whether you're launching a retail business, construction company, professional services firm, healthcare practice, restaurant or hospitality business, administrative services company, manufacturer, real estate business, wholesaler, finance or insurance firm, transportation or warehousing company, arts and entertainment business, educational organization, or growing startup, BizUp helps simplify the process from formation through ongoing compliance.
Choose the plan that fits your business today — and keep building from there:
- Starter: $0 + state fee
- Growth: $199 + state fee
- Complete: $299 + state fee
Frequently Asked Questions About Tennessee LLC Formation
How long does it take to form an LLC in Tennessee?
Online Tennessee LLC filings are typically processed within a few business days by the Tennessee Secretary of State. Mailed filings generally take longer depending on processing volume
How much does it cost to start an LLC in Tennessee?
The Tennessee state filing fee for Articles of Organization is $300 minimum for LLCs with up to six members. Additional state filing fees apply for LLCs with more than six members.
If you use BizUp, your service fees are:
- Starter: $0 + state fee
- Growth: $199 + state fee
- Complete: $299 + state fee
Additional costs may apply for business licenses, registered agent services after the first year, or optional name reservations.
What is the annual cost to maintain a Tennessee LLC?
Every Tennessee LLC must file an Annual Report each year. The filing fee is $300 minimum, with additional fees for LLCs that have more than six members.
Additional annual costs may include:
- Registered agent service
- Business license renewals
- Accounting or tax preparation
- Other federal, state, or local compliance obligations
The exact cost of maintaining a Tennessee LLC depends on your business activities, the number of LLC members, and any required licenses or permits.
What happens if I don't file the Tennessee Annual Report?
Every Tennessee LLC is required to file an Annual Report each year.
If you fail to file the Annual Report, your LLC may lose its good standing with the Tennessee Secretary of State. Continued failure to file can eventually result in administrative dissolution, meaning the state may revoke your LLC's legal existence.
If you miss the filing deadline, it's generally best to submit the required Annual Report and pay any applicable fees as soon as possible. Filing promptly can help restore your LLC's compliance and reduce the risk of additional administrative consequences.
How do I reserve an LLC name in Tennessee?
If you're not ready to form your LLC immediately, Tennessee allows you to reserve an available business name before filing your Articles of Organization.
To reserve a name:
- Search the Tennessee Secretary of State business database to confirm the name is available.
- File an Application for Reservation of Limited Liability Company Name.
- Pay the applicable filing fee.
A Tennessee LLC name reservation is generally valid for four months.
If you're ready to form your LLC right away, you can usually skip the reservation process since your business name is reserved when your Articles of Organization are accepted.
What is the Tennessee Annual Report?
The Tennessee Annual Report is a required filing that helps keep your LLC in good standing with the Tennessee Secretary of State.
The report updates important business information, including your registered agent and principal office information, and is generally due by the first day of the fourth month following the close of your LLC's fiscal year.
Missing the filing deadline can result in your LLC losing its good standing and may eventually lead to administrative dissolution if the filing remains delinquent.
Does Tennessee require an annual report for LLCs?
Yes.
Tennessee requires LLCs to file an Annual Report each year.
Businesses must also:
- Maintain a registered agent.
- Keep business information current with the Tennessee Secretary of State.
- Renew any required licenses or permits.
- Meet all applicable federal, state, and local tax obligations.
Do I need to live in Tennessee to form an LLC?
No.
You do not need to be a Tennessee resident to form a Tennessee LLC.
However, every Tennessee LLC must maintain a registered agent with a physical Tennessee address to receive legal documents and official government correspondence.
Can one person form a Tennessee LLC?
Yes.
Tennessee allows single-member LLCs, which receive many of the same liability protection benefits as multi-member LLCs.
Single-member LLCs are common among consultants, contractors, healthcare professionals, real estate investors, retailers, professional service providers, and many other solo business owners.
Do I need an operating agreement for a Tennessee LLC?
Tennessee law does not require LLCs to adopt an operating agreement, but having one is strongly recommended.
An operating agreement helps establish ownership, management responsibilities, voting procedures, profit distributions, and other internal operating rules. It can also help reinforce the legal separation between you and your business, even if you're the only owner.
Do I need an EIN for a Tennessee LLC?
In many cases, yes.
You'll generally need an EIN to:
- Open a business bank account
- Hire employees
- File federal taxes
- Work with payment processors
- Apply for business financing
The IRS issues EINs at no cost.
What is a registered agent in Tennessee?
A registered agent is the individual or business entity designated to receive legal documents and official notices on behalf of your Tennessee LLC.
Tennessee requires every LLC to maintain a registered agent with a physical street address in the state where legal documents and government correspondence can be delivered during normal business hours. A P.O. Box alone does not satisfy this requirement.
Many business owners choose a professional registered agent service to help protect their privacy, ensure important documents are received promptly, and simplify ongoing compliance
Can I be my own registered agent in Tennessee?
Yes.
Tennessee allows LLC owners to serve as their own registered agent as long as they:
- Have a physical street address in Tennessee.
- Are available during normal business hours to receive legal documents.
- Consent to serving as the registered agent.
Many business owners instead choose a professional registered agent service to help maintain privacy, ensure important notices are received promptly, and avoid listing a home address in public business records.
Do I need a Tennessee business license?
Possibly.
Tennessee does not issue one universal statewide business license for every LLC.
Depending on your business activities and location, you may need:
- Local business licenses
- Professional licenses
- Contractor licenses
- Sales tax registration
- Health permits
- Industry-specific permits
Because licensing requirements vary by city, county, and industry, it's important to determine which licenses apply to your business before beginning operations.
Form your Tennessee LLC with BizUp today.
Starter plan at $0 + state fees. Growth plan at $199 + state fees. Complete plan at $299 + state fees.