How To Start An LLC In Tennessee: Step-By-Step Guide (Mar. 2026)

To start a Limited Liability Company (LLC) in Tennessee, you must complete your Tennessee LLC registration online by filing your Articles of Organization with the Tennessee Secretary of State. Alongside this, you need to pay a one-time filing fee of $300 to $3,000, depending on the number of LLC members.

In this article, I’ve written a comprehensive overview of how to start an LLC in Tennessee, including Tennessee LLC registration online, choosing a suitable name, appointing a Registered Agent, completing your filing requirements, and managing the necessary follow-up procedures so you’ll know exactly what to do at each stage of formation and how to start an LLC in Tennessee for free.

How To Start An LLC In Tennessee: A Step-By-Step Overview

Starting an LLC in Tennessee can be divided into 8 steps, which I’ve discussed below.

1. Pick Your Desired LLC Name

Your LLC name must be clearly distinguishable from existing state businesses. Tennessee also requires your LLC name to include one of the following business identifiers:

• LLC.
• L.L.C.
• Limited Liability Company.

You must confirm the availability of your desired business name using the Tennessee Business Entity Search before filing your formation application.

Doing this helps you avoid:

• Rejected LLC filings.
• Lost filing fees.
• State approval delays.

I recommend preparing 3-5 backup LLC names. You can read my detailed guide on the name search process and common reasons for state rejections here: Tennessee Business Name Search For LLCs.

2. Appoint A Suitable Registered Agent

Under Tenn. Code Ann. § 48-208-10, every Tennessee LLC must appoint and maintain a Registered Agent to stay legally compliant.

Your Tennessee Registered Agent must meet the following requirements:

• Maintain a physical Tennessee street address. You can NOT use a P.O. box.
• Be available during normal business hours to receive and process important documents.

You may choose one of the following as your Tennessee Registered Agent:

• Yourself.
• A trusted friend or family member who lives in Tennessee.
• A professional Registered Agent service.

Serving as your own Registered Agent or appointing someone you know is completely free. However, it creates availability issues, compliance risks, and privacy concerns. This is because your agent’s name and address become part of the public record. Furthermore, someone must always be available during normal business hours.

Because of this, I highly suggest appointing a professional Registered Agent service. These commonly cost around $150–$199 per year.

Professional Registered Agent services help by:

• Providing a compliant state address.
• Keeping your personal details off the public record.
• Reliably handling and forwarding important state and legal documents.

See my guide on the Best Registered Agents In Tennessee for a detailed breakdown of the best agents in the state.

3. File Your LLC Articles Of Organization

Completing your Articles of Organization filing is the step that legally creates your LLC in the state. Your LLC is not formed or legally recognized by the state until your documents have been properly filed and accepted under Tenn. Code Ann. § 48-205-101.

Your one-time filing fee is based on the number of LLC members when completing your filing:

• LLCs with 1–6 members pay $300.
• LLCs with more than 6 members pay $300 + $50 per additional member (up to a maximum of $3,000).

Online filings should be approved immediately, while mail filings typically take 3-5 business days, once received by the state.

Read my article on the Tennessee Articles Of Organization for a complete walkthrough on the required steps and fees.

4. Complete Your LLC Operating Agreement

You do NOT need to file an Operating Agreement with the State of Tennessee. However, I strongly recommend that you complete and maintain one for the following reasons:

• It defines your ownership, management, and daily operational rules.
• It protects your limited liability status, helping secure your personal finances.
• It reduces the risk of internal member disputes and saves time.

You can read my article on How To Write Your Tennessee LLC Operating Agreement if you require further information.

Use my free Operating Agreement templates below to help you complete this step. I’ve written one for each LLC management structure.

5. Acquire Your Tennessee EIN

An EIN is a nine-digit business identifier number issued by the Internal Revenue Service (IRS). It identifies your LLC for your federal tax and compliance obligations. Acquiring your EIN is quick and free when using the official IRS online website.

You must get your EIN to:

• Open a dedicated business bank account.
• Hire LLC employees and complete payroll.
• File your federal tax returns correctly.
• Establish credibility with banks and vendors.

You should read my guide if you need more details on How To Get An EIN For A Tennessee LLC.

You can get your EIN using two main methods:

6. Secure Your Applicable Business Licenses And Permits

However, certain businesses may need to obtain state-level occupational or professional licenses. This depends on whether they’re operating in a regulated industry.

Furthermore, you may need to obtain a municipal business license, depending on your operating location. This is given out by your local city or county.

Your licensing requirements vary, so I recommend checking with the appropriate local office as soon as possible.

You can read my guide on the Tennessee Business Licenses And Permits to identify and obtain your required licenses.

7. Register For Business Tax

The Tennessee Business Tax is a privilege tax imposed by the state for the right to operate your business in Tennessee. It’s based on your gross sales of goods and services in the state.

All Tennessee LLCs must register with the Department of Revenue via the Taxpayer Access Point (TNTAP) and complete the required classification questions, even if they don’t owe tax. Your tax filing obligations depend on your LLC’s gross earnings.

Furthermore, the TNTAP acts as a central registration point when completing many state tax obligations, not just the business tax. This is why all LLCs have to register using the TNTAP portal. For example, it’s also used for the Sales and Use Tax, something which I’ve discussed in the next step.

You can read my guide on the Tennessee Business Tax Registration for a complete walkthrough of the filing process.

8. Obtain Sales And Use Tax License

If your LLC sells, leases, or rents tangible goods, you must register for a Sales and Use Tax License. This also applies if you provide taxable services in the state.

As I’ve discussed above, you must use the TNTAP portal as a central registration point for most of your required taxes, including your Sales and Use Tax License. Therefore, go to the Tennessee Taxpayer Access Point to register for your license.

Your Tennessee Sales Tax Rate depends on your LLC’s operating location. It’s a combination of:

• State tax: 7%.
• Local tax: Varies by county or city.

Check out my guide on the Tennessee Sales & Use Tax License to learn more about how to obtain your license.

What To Do After You’ve Formed Your Tennessee LLC

Your LLC is legally formed and recognized in the state once it is approved. However, you must complete several additional steps before you can become fully operational.

1. Open A Separate Business Bank Account

You must open a dedicated business bank account for your LLC after receiving your EIN.

Opening a separate business bank account allows you to:

• Preserve your limited liability status.
• Separate your personal assets and business finances.
• Simplify your tax reporting and bookkeeping procedures.
• Improve your business credibility when working with vendors, clients, and banks.

2. File Your Tennessee LLC Annual Report

Under Tenn. Code Ann. § 48-249-1017, all Tennessee LLCs must file an Annual Report to maintain their good standing with the state.

You will face potential fines, penalties, and administrative dissolution if you fail to file your report on time.

Read my guide on the Tennessee Annual Report for a detailed walkthrough.

3. Manage Your Tennessee LLC Tax Responsibilities

Your Tennessee LLC may need to complete various tax obligations at the local, state, and federal levels. This depends on your operating location, your business activities, and LLC structure.

a. Federal Taxes

Your LLC’s federal tax responsibilities depend on how the IRS classifies your business and how it operates.

Common federal tax obligations may include:

• Federal income tax: This is based on how your LLC is taxed.
• Self-employment taxes: This is for members actively involved in your business.
• Payroll taxes: If your LLC hires employees.

b. Tennessee State Taxes

You may also need to pay Tennessee state taxes, depending on your business activities, operating location, and revenue.

Your state tax obligations may include:

• Sales and use tax: If your LLC sells taxable services or goods.
• Business tax: This applies to most Tennessee businesses earning $100,000 or more in gross receipts. It may also involve a city business tax.
• Other state taxes: These are based on your operating industry or regulated activities.

c. Local Taxes

Lastly, some LLCs operating in Tennessee must pay local taxes imposed by cities and counties. Your obligations may include:

• Local income taxes.
• Property taxes (if your LLC owns real estate or taxable personal property).

Tennessee Key Government Agency Contact Points

You may need to work with various Tennessee state agencies at different stages during your formation and operations procedures. I’ve listed the main contact details below for the agencies that can provide advice on completing your key requirements.

1. Tennessee Secretary Of State Contact Information

The Tennessee Secretary of State handles your Articles of Organization, Annual Report, and general business entity records:

• Physical address: 312 Rosa L. Parks Avenue, Nashville, TN 37243-1102.
• Hours: Monday to Friday, 8:00 A.M. to 4:30 P.M. (CST).
• General phone: (615) 741-2819.
• Business filings and information: (615) 741-2286.
• Business services email: [email protected].
• Official website: sos.tn.gov.

2. Tennessee Department Of Revenue Contact Details

The Tennessee Department of Revenue manages your business tax registration, sales and use tax, and other state taxes:

• Statewide toll-free: (800) 342-1003.
• Nashville area and out-of-state: (615) 253-0600.
• Email: [email protected].
• Office hours: Monday to Friday, 8:00 A.M. to 4:30 P.M. (Local time).

Frequently Asked Questions