Tennessee LLC Requirements

Updated for 2026 · Official Secretary of State Website

Tennessee has no state income tax on wages but imposes one of the highest LLC formation and annual fees in the nation at $300 each (minimum). Fees scale up with the number of members — $50 extra per member beyond six. Nashville's booming economy and Tennessee's pro-business reputation attract many entrepreneurs, but the high state fees are a significant consideration.

Filing Fee

$300

One-time state fee

Annual Fee

$300

Per year

Processing

1-3 business days

Online filing

Deadline

April 1

Annual report due

Note: $300 minimum; fee increases by $50 per member over 6 members, up to $3,000 maximum.

Above Average Cost

Tennessee's $300 filing fee and $300 annual report make it one of the most expensive states for LLC formation and maintenance, with minimum first-year costs of $600.

Notable Facts About Tennessee LLCs

Tennessee's LLC fees scale with membership: $300 minimum, plus $50 per member beyond 6
The state has no income tax on wages or salaries
Nashville has been one of the fastest-growing US cities for business formation
The 60-day grace period after the April 1 deadline is one of the most generous nationally

Tax Information for Tennessee LLCs

Tennessee has no state income tax on wages or salaries. The Hall Income Tax on interest and dividends was fully repealed in 2021. The state imposes a franchise tax (minimum $300) and excise tax (6.5% on net earnings) on LLCs. Tennessee has a 7% state sales tax, one of the highest in the nation, plus local additions up to 2.75%.

Formation Steps

1

Choose a Name for Your LLC
Select a unique business name that complies with Tennessee naming requirements. The name must include "LLC" or "Limited Liability Company" and cannot be the same as an existing registered business in Tennessee.
2

Appoint a Registered Agent
Designate a registered agent with a physical address in Tennessee who can receive legal documents and official correspondence on behalf of your LLC.
3

File Articles of Organization
Submit your Articles of Organization (also called a Certificate of Formation in some states) to the Tennessee Secretary of State. This is the official document that creates your LLC.
4

Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member roles, profit distribution, and management structure of your LLC. While not always legally required, it is strongly recommended.
5

Get an EIN from the IRS
Apply for a free Employer Identification Number (EIN) from the IRS. You'll need this for opening a business bank account, hiring employees, and filing taxes.
6

Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. This helps maintain your LLC's liability protection.
7

File Annual Reports
Tennessee requires periodic reports due by April 1. The filing fee is $300. Mark your calendar to avoid late fees or administrative dissolution.

Visit Official SOS Website

Annual Report Details

Fee: $300

Deadline: April 1

Annual report due by the 1st day of the 4th month after fiscal year ends (April 1 for calendar-year entities). 60-day grace period.

$300 minimum annual report fee. Increases by $50 per member over 6, up to $3,000.

Need a Registered Agent in Tennessee?

Every Tennessee LLC must have a registered agent with a physical address in the state. A registered agent service ensures you never miss important legal documents or compliance deadlines.

Compare Registered Agent Services

Frequently Asked Questions

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

The state filing fee to form an LLC in Tennessee is $300 for the Articles of Organization. $300 minimum; fee increases by $50 per member over 6 members, up to $3,000 maximum. This cost is above average compared to other states. Additional costs may include a registered agent service ($50-$300/year) and an operating agreement if you hire an attorney.

What is the annual cost of an LLC in Tennessee?

Tennessee charges $300 for its periodic reporting requirement, due April 1. $300 minimum annual report fee. Increases by $50 per member over 6, up to $3,000. Tennessee's $300 filing fee and $300 annual report make it one of the most expensive states for LLC formation and maintenance, with minimum first-year costs of $600.

How long does it take to form an LLC in Tennessee?

Online filing in Tennessee typically takes 1-3 business days. You'll need to file Articles of Organization with the state. Processing times may vary based on filing volume and the time of year.

Do I need a registered agent in Tennessee?

Yes, Tennessee requires every LLC to have a registered agent with a physical street address in the state. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC.

What taxes does a Tennessee LLC pay?

Does Tennessee require an operating agreement for LLCs?

While not all states legally require an operating agreement, it is strongly recommended for every LLC in Tennessee. An operating agreement defines ownership structure, member roles, and how the business will be managed. Without one, your LLC will be governed by Tennessee's default LLC laws.