How to Start an LLC in Tennessee

Looking for a clear guide to walk you through all the steps to starting a Tennessee LLC? You’ve found it! This guide will walk you through filing your Articles of Organization, choosing a registered agent, and other essential steps to get your business up and running.

Start Your TN LLC

Create a TN LLC in 5 Steps:

  1. Name Your Tennessee LLC
  2. Choose a Registered Agent
  3. File Tennessee Articles of Organization
  4. Set Up Business Operations
  5. File BOI Report

Step 1: Name Your Tennessee LLC

Selecting an ideal name for your Tennessee LLC is one of the first steps in forming your business. Your name must be unique within the state to receive approval for your Articles of Organization. Here are some key rules and considerations for choosing your business name:

What are Tennessee’s business name requirements?

  • Tennessee Code Annotated chapter 286 §106 lists the rules for naming your LLC. Basically, your business name must use letters from the English alphabet, and contain an entity identifier (LLC, L.L.C., Ltd. Liability Co., etc.) or the words “Limited Liability Company.” The name must also be unique name among business names already in use in the state.

Is the name unique in the state?

Are others using the name online?

  • After confirming that your business name is available in the state, verify if it’s being used online as a domain name or social media handle. This ensures you can establish a consistent business presence with the same or similar names across various media and advertising platforms.

Can you register the name as a trademark?

  • Want to protect the uniqueness of your business name nationwide? When you sign up for our LLC formation or registered agent service, you can also hire us to register a trademark. Our in-house trademark team performs clearance searches, and attorneys will work with you on solutions to any registration obstacles.

Step 2: Choose a Tennessee Registered Agent

Tennessee requires all entities to appoint and maintain a Tennessee registered agent to receive your business’s legal mail. The registered agent can be an individual or another entity. Below are the requirements for both:

Individuals

  • must be at least 18 years old
  • must be a resident of Tennessee
  • must have a physical Tennessee address where they can receive legal mail in person during normal business hours (9am-5pm, Monday-Friday)

Entities

  • must be authorized to do business in Tennessee
  • must have a physical Tennessee address staffed during regular business hours (9am-5pm, Monday-Friday) so your business’s legal mail is received in person

You will need the name and address of your chosen registered agent to complete the LLC application. The agent’s information will become public record, so it’s important to receive their consent before appointing them to this legal position for your business.

Step 3: File Tennessee Articles of Organization

The LLC Articles of Organization application to the Tennessee Secretary of State is what officially forms your company. The minimum state filing fee is $300 (this pays for up to six members, additional members cost $50 each). The application can be filed by mail or online and requires the following information:

1

Entity Name
Don’t forget to include the entity identifier (L.L.C., LLC, or Limited Liability Company).

2

Name consent (optional)
Check this box if you have written consent from another business to use the same (or very similar) business name (an additional $20 fee is also required).

3

Additional designation
This is only required if your LLC will be involved in banking, insurance, litigation financing, or if your LLC will be non-profit, a Professional LLC (PLLC), Series LLC, or Trust Company.

4

Registered agent information
The name and physical Tennessee address is required (PO Boxes are not accepted).

5

Fiscal year close month
This is most commonly entered as the end of December.

6

Delayed effective date (optional)
Enter a specific date for your LLC to become active. Otherwise, leave blank if the date your LLC is approved by the state is acceptable.

7

Management structure
Choose the management structure for your LLC. The most common is Member Managed.

8

Number of members
Enter the number of members your LLC will have upon formation.

9

Duration of the LLC
If your LLC will be active indefinitely, choose “perpetual.” If you want your LLC to have a specific “dissolve on” date, check the “Other” box and enter the date.

10

The LLC’s principal address
This must be a physical address, but does not have to be a Tennessee address. The business email address you enter will be used by the state for important notices.

11

Mailing address (optional)
If you want your business mail to be sent to a different address, you can enter a mailing address (PO Boxes are okay here).

12

Non-Profit LLC (optional)
If your LLC will be a Non-Profit LLC, check this box. Otherwise, leave it blank.

13

Professional LLC (PLLC) (optional)
If your LLC will be a PLLC (dentists, lawyers, architects, and other professions requiring special licensing) check this box. Otherwise, leave it blank.

14

Series LLC (optional)
If your LLC will be a Series LLC, check this box. Otherwise, leave it blank.

15

Obligated Member Entity (OME)
Specify if your LLC will be registered as an Obligated Member Entity, where members waive the liability protections of the LLC and become responsible for all debts and obligations of the business.

16

Prohibited businesses
Check the box if the LLC, while being formed under Tennessee law, is prohibited from engaging in business in Tennessee (most businesses can skip this part).

17

Additional provisions (optional)
You can include any additional provisions for your LLC here.

18

Organizer’s signature
This is the person who is submitting your Articles of Organization to the state.

How long does it take for an LLC to be approved in Tennessee?

LLC approval time depends on how you submitted your LLC application to the state:

  • Online: Your LLC application is approved immediately. You’ll be able to download a copy of your approved documents right away.
  • By mail: The state can take two to three weeks to process and approve mailed-in application. The state will mail you a physical copy of your approved documents.
  • In person: Your LLC application will be processed while you wait. You’ll be given a hard copy of your approved documents.

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Step 4: Set Up Business Operations

Now that your Tennessee LLC is registered, there are a few more actions to take to set your business up for success:

Create an operating agreement.
An operating agreement forms the foundation for your Tennessee LLC’s business operations. It outlines the procedures for things like adding new members, assigning member responsibilities, and dividing ownership. It helps every member of your LLC understand what their obligations are so costly legal actions due to misunderstandings can be avoided.

Get an EIN.
An EIN acts like your LLC’s social security number. Many banks ask to see your EIN when opening a business bank account, and they are also required if you hire employees.

Manage your company’s money.
To better maintain your Tennessee LLC’s limited liability protections, you need to keep your business and personal income separate. Opening a separate business bank account is most common way to do this.

Obtain licenses and permits.
Your Tennessee LLC may need to additional permits and/or licenses to legally do business there. Contact the TN Department of Commerce & Insurance to see if the nature of your business requires further licensing.

Step 5: File BOI Report

Most new LLCs are required to file the Beneficial Ownership Information Report (BOI) within a few weeks of registration. This report asks for information about the company itself, owners who have substantial control over the company, and/or others who own at least 25% of the business.

This federal filing is submitted to FinCEN and became a requirement in 2024. LLCs formed in 2024 have 90 days from registration to file their BOI Report. If you form your LLC in 2025 or later, you’ll have just 30 days to file.

When you hire us to form your Tennessee LLC, you can add on the BOI Report filing to your order. Let us take care of this filing so you can focus on setting up your new business.

Frequently Asked Questions

What is needed to start an LLC in Tennessee?

To start an LLC in Tennessee, you’ll need to submit the LLC Articles of Organization application with the $300 filing fee. The state also requires you to appoint and maintain a registered agent with a physical office address in the state.

How much does it cost to start an LLC in Tennessee?

The minimum cost is $300 to start a Tennessee LLC with six or fewer members. If your LLC will have more than six members, the cost increases by $50 for each additional member (to a maximum of $3000). There is also a credit card processing fee of 2.29% of the total amount due, and online payments with e-checks are charged a $0.95 service fee.

Do LLCs pay taxes in Tennessee?

Yes, Tennessee LLCs are required to pay franchise and excise taxes. The minimum franchise and excise tax for LLCs is $100. For more information, visit the Tennessee Department of Revenue to get the correct tax registration forms for your business.

When is the Tennessee Annual Report due?

The Tennessee LLC Annual Report is due by the first day of the fourth month following the end of your fiscal year. So, if the end of your fiscal year is December 31st (very common), then your TN LLC Annual Report will be due by April 1st each year. This report is submitted to the TN Secretary of State.

The minimum Annual Report fee for LLCs is $300. If your LLC has more than six members, you’ll need to add $50 for each additional member. So if your LLC has eight members, your Annual Report fee will be $400.

How do I contact the Tennessee Secretary of State?

You can contact the Tennessee Secretary of State in the following ways:

Phone: 615-741-2286
Email: [email protected]

Physical & Mailing address:
Corporate Filings
312 Rosa L. Parks Avenue
6th Floor, Snodgrass Tower
Nashville, TN 37243-1102

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