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Forming an LLC in Tennessee costs at least $300 in state fees — the Articles of Organization filing fee is $50 per member, with a $300 minimum and $3,000 cap. Online filings through the Tennessee Secretary of State’s TNCaB portal are usually processed within a few business days. The six core steps are: pick a compliant business name, appoint a registered agent, file your Articles of Organization, draft an operating agreement, get a federal EIN from the IRS, and register for Tennessee tax accounts. No US citizenship or Social Security number is required to own a Tennessee LLC.
Short on time? Registered Agents Inc forms Tennessee LLCs for $100 + state fee — that covers the state filing, a domain name, a website, and one full year of registered agent service. Check current pricing for add-on tools, which run $5/month each.
Table of Contents
- How Much Does It Cost to Start an LLC in Tennessee?
- Step 1: Choose Your LLC Name
- Step 2: Appoint a Tennessee Registered Agent
- Step 3: File the Articles of Organization
- Step 4: Create an Operating Agreement
- Step 5: Get Your Federal EIN
- Step 6: Handle Tennessee Tax Registrations
- Tennessee LLC Annual Report
- Tennessee LLC Tax Basics
- Tennessee LLC for Non-US Founders
- Frequently Asked Questions
- Conclusion
How Much Does It Cost to Start an LLC in Tennessee?
Tennessee is one of the more expensive states to form and maintain an LLC. Here is the full breakdown (fee schedule current as of October 2026; the Secretary of State can change fees, so double-check before filing):
| Item | Cost |
|---|---|
| Articles of Organization (filing fee) | $300 minimum ($50 per member, capped at $3,000) |
| Name reservation (optional) | $20 |
| Registered agent (if using a service) | Varies — standalone registered agent service is $200/year at Registered Agents Inc; included free for year one with their $100 + state fee formation bundle |
| Annual report (every year) | $300 minimum ($50 per member, capped at $3,000) |
| Certificate of Existence / Good Standing | $20 |
| Franchise & excise tax | $100/year minimum franchise tax + 6.5% excise tax on TN net earnings |
That $300 minimum on both formation and the annual report is the figure most guides gloss over — and it is why Tennessee LLCs are notably pricier to maintain than LLCs in states like Wyoming or New Mexico. For a deeper comparison of formation costs across states, see how much it costs to form an LLC.
Why Registered Agents Inc for a Tennessee LLC? They charge a flat $100 + state fee to form your LLC, which includes the state filing itself, a domain name, a website, and one year of free registered agent service (check current pricing — add-on website, phone, and email tools are $5/month each). That first year of included registered agent service is especially valuable in Tennessee, where ongoing compliance costs are high. Start your Tennessee LLC here →
Step 1: Choose Your LLC Name
Tennessee naming rules require:
- The name must include “Limited Liability Company,” “LLC,” “L.L.C.,” or a similar recognized abbreviation.
- It must be distinguishable from every existing entity on file with the Tennessee Secretary of State. Run a free name search on the Secretary of State’s TNCaB portal before you commit.
- Avoid restricted words (like “Bank,” “Insurance,” or “University”) unless you hold the required licenses — these require state approval.
- You do not need to repeat the name you searched exactly; double-check spelling before filing, because amending the name later costs extra.
If you are not ready to file yet, you can reserve your name for $20 (per the Secretary of State’s fee schedule), which holds it while you prepare your filing.
Step 2: Appoint a Tennessee Registered Agent
Every Tennessee LLC must continuously maintain a registered agent with a physical street address in Tennessee (P.O. boxes do not qualify). The registered agent receives lawsuits, tax notices, and official state correspondence on your LLC’s behalf during business hours.
Your options:
- Yourself — only if you live in Tennessee and are available at that address during business hours. For foreign founders, this is not an option.
- A trusted person in Tennessee — a friend or partner, but their address becomes public record.
- A professional registered agent service — the standard choice for non-resident and non-US founders. Read more about whether you need a registered agent.
This is exactly why the Registered Agents Inc bundle is worth noting: one year of registered agent service is included in the $100 + state fee formation package (their standalone registered agent service is $200/year — check current pricing), so you solve this step and the filing step in one move. Get started with Registered Agents Inc →
Step 3: File the Articles of Organization
The Articles of Organization is the legal document that creates your LLC. In Tennessee it is filed with the Secretary of State through the online TNCaB portal (Tennessee’s Charity and Business Filing System, launched February 2025, which replaced the old TNBear system). You will need a TNCaB account to file online; mail filing is also accepted.
The filing requires:
- Your LLC’s name and principal office address
- Your registered agent’s name and Tennessee street address
- The number of members (this sets your filing fee: $50 per member)
- Management structure (member-managed vs. manager-managed)
- Duration (most LLCs choose perpetual)
Fee: $300 minimum ($50 per member, up to $3,000). A single-member LLC pays $300. There is no expedited processing option in Tennessee, per the Secretary of State’s fee schedule.
Processing time: Online filings are typically processed within a few business days (this is approximate — confirm current turnaround on the Secretary of State’s site, as processing times vary with filing volume). Mail filings take longer.
Step 4: Create an Operating Agreement
Tennessee does not require LLCs to file an operating agreement with the state — but you should write one anyway. This internal document defines ownership percentages, voting rights, profit distribution, how members join or leave, and what happens if the LLC dissolves.
Why it matters even for single-member LLCs: banks frequently ask for it when you open a business account, and courts treat LLCs with written operating agreements more seriously when liability protection is challenged. Follow our LLC operating agreement guide for the exact clauses to include.
Step 5: Get Your Federal EIN
An Employer Identification Number (EIN) is your LLC’s federal tax ID. You need one to open a US business bank account, hire employees, and file federal taxes.
- US founders with an SSN: apply free online at irs.gov — approval is typically instant.
- Foreign founders without an SSN: you cannot use the online application. File IRS Form SS-4 by fax or mail, or apply by phone through the IRS’s international line (check the current fax numbers and phone line on the IRS’s Form SS-4 instructions — they change periodically). Processing by fax typically takes about a week; mail takes 4–6 weeks.
For the full walkthrough, see how foreign founders get an EIN without an SSN.
Step 6: Handle Tennessee Tax Registrations
After formation, register with the Tennessee Department of Revenue through the TNTAP portal (Tennessee Taxpayer Access Point) for the taxes that apply to you:
- Franchise & excise tax: Most LLCs registered in Tennessee must register for and pay these (details below). File the FAE170 return; due on the 15th day of the 4th month after your fiscal year ends (April 15 for calendar-year filers).
- Business tax: Tennessee levies a gross-receipts business tax on businesses with over $100,000 in Tennessee gross receipts; registration and licensing go through TNTAP.
- Sales tax: If you sell taxable goods or services in Tennessee, register for a sales tax permit and collect/remit sales tax (Tennessee’s combined state rate is 7%, plus local rates up to 2.75%).
- Employer taxes: If you hire employees in Tennessee, register for unemployment insurance with the Department of Labor and Workforce Development and handle withholding.
Check current rules on the Department of Revenue’s site — Tennessee tax thresholds and forms are updated regularly.
Tennessee LLC Annual Report
Tennessee LLCs must file an annual report every year with the Secretary of State:
- Fee: $300 minimum ($50 per member, capped at $3,000) — the same per-member formula as the formation filing.
- Due date: between January 1 and April 1 each calendar year, starting the year after formation.
- How: filed through the TNCaB portal (requires a TNCaB account).
Missing the deadline puts your LLC in bad standing and can eventually lead to administrative dissolution. For the full picture of ongoing obligations, read our guide to LLC annual compliance requirements.
Tennessee LLC Tax Basics
Tennessee is famous for having no personal income tax — but that does not mean your LLC pays nothing. Key facts (per the Tennessee Department of Revenue, current as of October 2026):
- Franchise tax: 0.25% of net worth, with a $100 minimum per year — owed even if the LLC is inactive. (The old property-based measure was eliminated for tax years ending on or after January 1, 2024.)
- Excise tax: 6.5% of Tennessee net earnings. For tax years ending on or after December 31, 2024, businesses can take a standard deduction of up to $50,000 from net earnings before apportionment — which effectively eliminates the excise tax for many small LLCs, while the $100 minimum franchise tax still applies.
- Business tax: a gross-receipts tax once Tennessee receipts exceed $100,000.
- Sales tax: 7% state rate + local add-ons if you sell taxable goods/services.
Single-member LLCs taxed as disregarded entities can face different filing treatment than multi-member LLCs taxed as partnerships — confirm your position with the Department of Revenue or a CPA rather than assuming.
One thing you do NOT need to worry about: BOI reporting. FinCEN’s final rule of August 11, 2026 (effective August 14, 2026) permanently exempts US-formed companies — including Tennessee LLCs, even when owned by foreign nationals — from beneficial ownership reporting under the Corporate Transparency Act.
Tennessee LLC for Non-US Founders
Tennessee is fully open to foreign ownership: no US citizenship, residency, or Social Security number is required to form and own a Tennessee LLC. The specific issues non-US founders face:
- Formation itself needs no SSN or ITIN. You file the Articles of Organization in TNCaB like anyone else. The SSN/ITIN only enters the picture for taxes and banking.
- EIN without an SSN: file IRS Form SS-4 by fax or mail (or call the IRS international line) as described in Step 5. Most foreign founders receive their EIN by fax within about a week.
- ITIN: if the LLC owes US tax and you have no SSN, you may need an Individual Taxpayer Identification Number — file IRS Form W-7. Many foreign-owned single-member LLCs also face the Form 5472 + pro-forma Form 1120 reporting requirement with the IRS; talk to a US tax professional before your first tax year ends.
- Business bank account: this is the hardest step from abroad. Wise Business is the most reliable first pick for founders in countries banks commonly block. Note that Mercury maintains a published prohibited-country list of roughly 48 countries (including Pakistan, Bangladesh, Nigeria, and the Philippines) and blocks founders resident in them — always check the current eligibility list before choosing a provider.
- Registered agent: since you have no Tennessee address, a professional service is effectively mandatory — another reason the Registered Agents Inc bundle (one year of agent service included in the $100 + state fee) fits foreign founders well.
Frequently Asked Questions
How much does it cost to start an LLC in Tennessee?
At minimum $300 in state fees — the Articles of Organization costs $50 per member with a $300 minimum and $3,000 cap, so a single-member LLC pays $300. Add the annual report ($300 minimum each year), a registered agent service if you use one, and at least $100/year in minimum franchise tax. Always verify the current fee schedule with the Tennessee Secretary of State before filing.
How long does it take to form an LLC in Tennessee?
Online filings through the Secretary of State’s TNCaB portal are typically processed within a few business days, though turnaround varies with filing volume. Mail filings take longer. Note that Tennessee does not offer expedited processing, so build the standard timeline into your plans.
Do I need a registered agent for a Tennessee LLC?
Yes. Tennessee requires every LLC to maintain a registered agent with a physical street address in the state during business hours. You can serve as your own agent only if you live in Tennessee. Non-resident and foreign founders almost always use a professional service — read more on whether you need a registered agent.
Can a non-US citizen form an LLC in Tennessee?
Yes. Tennessee imposes no citizenship or residency requirement on LLC owners, and no SSN or ITIN is needed to file the Articles of Organization. You will need an EIN from the IRS (Form SS-4 by fax or mail if you lack an SSN) for banking and taxes, and likely a US tax professional for Form 5472 reporting.
Does Tennessee require an LLC annual report?
Yes. Every Tennessee LLC files an annual report between January 1 and April 1 each year, starting the year after formation. The fee is $50 per member with a $300 minimum and $3,000 cap. Reports are filed through the Secretary of State’s TNCaB portal, which requires a separate account.
Is Tennessee a good state for an LLC?
It depends on your priorities. Tennessee has no personal income tax and a large, growing economy — but it is one of the most expensive states to maintain an LLC: $300 minimum annual report fees plus a $100 minimum franchise tax and 6.5% excise tax on earnings. If low ongoing cost is your main goal, Wyoming or New Mexico are cheaper alternatives.
Conclusion
A Tennessee LLC makes sense if you are doing business in the state or want its no-income-tax environment — just go in with eyes open about the $300 minimum filing fee, the $300 minimum annual report, and the franchise and excise taxes that make Tennessee pricier than most states to maintain. Follow the six steps above, file through TNCaB, calendar your April 1 annual report deadline, and get your tax registrations sorted in TNTAP.
Want it handled for you? Registered Agents Inc forms Tennessee LLCs for $100 + state fee — including the state filing, a domain name, a website, and one year of free registered agent service (add-on tools are $5/month each — check current pricing). One order, zero paperwork headaches, and a registered agent that keeps you compliant from day one. Form your Tennessee LLC today →