How Much Does It Cost to Start an LLC in Tennessee?

Tennessee LLC Online Filing Fee: $300+

The main cost to start an LLC is the $300+ fee to file your LLC's Articles of Organization online with the Tennessee Secretary of State.

For a look at LLC cost in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Tennessee Annual Report Fee: $300+

Tennessee requires LLCs to file an annual report with the Secretary of State. The filing fee is $50 per member, with a minimum total fee of $300 and a maximum of $3000.

You can submit this form through the Tennessee Secretary of State website. It is due by the first day of the fourth month following the close of the LLC's fiscal year.

Registered Agent Fee

In Tennessee you can be your own registered agent, but using a registered agent service helps keep your company in compliance and reminds you of important filing deadlines and avoid late fees.

• If you need to form a new business and get a registered agent, the best package is by Northwest Registered Agent $29 + state fees

OR:

• If only a registered agent is required, Northwest Registered Agent provides an excellent service: $125

Read our guide to learn more about Tennessee Registered Agents. You can also read our full guide on the best registered agent services.

Tennessee Franchise Tax: Varies

The franchise tax’s minimum payment is $100, and the rate is 0.25% of the networth of the LLC or the LLC’s tangible property.

The excise tax is 6.5% of the LLC’s taxable net income, made in Tennessee.

Cost to Form a Foreign LLC in Tennessee

If you already have an LLC that is registered in another state and you’d like to expand your business into Tennessee, you’ll need to register your LLC as a foreign LLC in Tennessee.

The cost for registering a Tennessee foreign LLC is $50 per member, with a minimum fee of $300 and a maximum fee of $3,000. You can register a foreign LLC in Tennessee by filing an Application for Certificate of Authority (Form SS-4233).

Business Permits and Licenses

Depending on your industry and geographical location, your business might need federal, state, and local permits/licenses to legally operate in Tennessee. This is true whether you form an LLC or any other type of business structure.

Learn more about state and local licensing with our guide to getting a Tennessee business license.

Other LLC Filing Costs

There are optional fees associated with LLC formation:

LLC Name Reservation:
Reserve your name for up to 4 months prior to LLC formation by filing an Application for Reservation of Name (Form SS-9425) and paying the $20 filing fee.

“Doing Business As” (DBA) Name:
File an Application for Registration of Assumed Limited Liability Company Name (Form SS-4230) and pay the $20 filing fee to create a name other than your legal LLC business name.

Certified Document Copies:
Obtain certified copies of your Tennessee business documents by ordering through the Secretary of State and paying $20.

Certificate of Good Standing:
Also known as a Tennessee certificate of good standing, you can obtain this document by ordering through the Secretary of State and paying the $20 fee. A certificate of good standing is often required by banks and lending institutions.

Five Basic Steps to Start an LLC in Tennessee

Step 1: Name Your Tennessee LLC
Step 2: Choose a Registered Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN

Step 1: Name Your Tennessee LLC

When you name your Tennessee LLC, you’ll need to choose a name that:

1. Is available for use in the state of Tennessee
2. Meets Tennessee naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Tennessee guide for detailed naming rules and instructions for registering a business name in Tennessee.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Tennessee must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Tennessee registered agent must:

• Be at least 18 years or older
• Have a physical address in Tennessee
• Be available during normal business hours to accept service of process

Step 3: File the Articles of Organization

The Tennessee Form SS-4270 - Articles of Organization is a document that is filed with the Tennessee Secretary of State to form an LLC. The fee for filing the Articles of Organization is at least $300. The filing fee is $50 per LLC member, with a minimum total fee of $300 and a maximum of $3,000.

For detailed instructions for completing the Articles of Organization, visit our How to File the Tennessee Articles of Organization guide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Tennessee LLCs, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Tennessee LLC operating agreement guide.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

• Opening a business bank account
• Hiring employees