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How to Start an LLC in Tennessee

Mar 02, 2025
How to Start an LLC in Tennessee

Looking to start a Tennessee LLC without burning a hole in your pocket? You're smarter than most. While other states charge up to $500 just to file paperwork, Tennessee keeps it straightforward with a $300 base filing fee and next-day online processing. Plus, with no state income tax and minimal red tape, Tennessee ranks 15th nationally for business-friendly policies. 

 

But here's what the fancy business consultants won't tell you: starting an LLC in Tennessee doesn't require expensive services or complex legal maneuvers. 

 

We'll show you exactly how to get your LLC up and running quickly, focusing on what actually matters instead of unnecessary bells and whistles that drain your startup budget.

Starting Your Tennessee LLC

Before jumping into the step-by-step process, here’s what makes forming an LLC in Tennessee unique:

  • Save Money on Filing: While other states nickel and dime you with excessive fees, Tennessee keeps it simple – $300 flat rate for up to six members. Even with additional members at $50 each, you'll never pay more than $3,000.
  • Fast Processing Without Rush Fees: Skip expensive expedited services. Online applications process in one business day, while mail applications take 5-7 business days. No need to pay extra for speed.
  • Minimal Licensing Requirements: If your business makes under $3,000 annually, you don't need a business license at all. Between $3,000-$100,000? You'll only pay $15 for a minimal activity license from your county.
  • Tax Advantages: Tennessee has no state income tax, and you can serve as your own registered agent to save $100-300 annually in service fees. Just maintain a physical Tennessee address and be available during business hours.
  • Simple Annual Compliance: One annual report with the same fee as your initial filing. No hidden costs or complex requirements – just straightforward maintenance to keep your LLC running.

How to Form Your Tennessee LLC

Let's cut through the noise and focus on exactly what you need to do to get your LLC up and running in Tennessee.

Step 1: Name Your LLC Right

First things first – pick a name that follows Tennessee's rules. Your name must include "Limited Liability Company," "LLC," or "L.L.C." Use the Tennessee Business Entity Search to check availability. Skip the $20 name reservation unless you're not ready to file yet – filing your LLC paperwork automatically reserves your name.

Step 2: Choose Your Registered Agent

Here's an easy way to save money: be your own registered agent. You'll need a physical Tennessee address (no P.O. boxes) and availability during business hours. While fancy services charge $100-300 annually, serving as your own agent costs nothing. Just be ready to receive legal documents during regular business hours.

Step 3: File Your Articles of Organization

File Articles of Organization online via the Tennessee Secretary of State Business Services for fastest processing and save $5 off the mail-in fee. 

 

You'll need:

  • Your LLC name
  • Principal office address
  • Registered agent information
  • Whether you're member or manager-managed
  • Number of members
  • Fiscal year end month

 

Once you’re online click the red “Start Now” button.

Fill out the next section, choose “LLC” from the drop down, click the check mark, and then “Continue.”

Add LLC to the end of your business name, then fill out the rest of the information.

Unless you have more members, fill out the page like our example.

Fill yourself out as the registered agent, and continue.

Next, fill out the business address, confirm, sign, and submit your documents! 

 

Remember, Tennessee processes online applications in just one business day – no need for expensive rush fees or third-party services.

Post-Formation Requirements

Don't let anyone overcomplicate your ongoing LLC maintenance. Here's what Tennessee actually requires after formation:

Get Your Tax Documents in Order

  • Apply for an EIN online through the IRS website
  • Register for Tennessee sales tax through TNTAP if you're selling products
  • Remember, Tennessee's base sales tax is 7%, but local rates can push it to 9.55%
  • File your initial franchise tax report ($100 minimum) based on property value or net worth

Save Money on Business Licenses

If your annual revenue is under $3,000, you don't need a business license at all. Making between $3,000-$100,000? Get a minimal activity license for just $15 from your county clerk. Over $100,000? You'll need a standard business license, but it's still just $15.

Keep Your LLC Compliant

  • File annual reports by the first day of the fourth month after your fiscal year ends
  • Pay the same fee as your initial filing ($300 base)
  • Maintain current registered agent information
  • Keep up with any local permit renewals
  • Visit the Tennessee Department of Revenue for tax registration and licensing requirements.

Time to Make it Official

Tennessee makes it relatively affordable to start and maintain an LLC. Your total startup costs can be as low as $300 if you serve as your own registered agent and handle the straightforward filing process yourself. Skip the expensive formation services and unnecessary add-ons – you've got everything you need to get started right here.

 

Ready to join Tennessee's business-friendly environment? Head to Tennessee Secretary of State Business Services and file your LLC online today. You could be up and running by tomorrow.

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