Forming a Limited Liability Company (LLC) in Tennessee is an easy process, but it involves a few steps. 

Start an Tennessee LLC for $0 + state fee 

To form an LLC in Tennessee for free + state fee, we have listed 3 options to consider: 

You can go online and visit the Tennessee Secretary of State’s website and do it yourself or you can use the ‘free’ service from Incfile or ZenBusiness.

Want to Keep Things More Private? 

  • Northwest $39 + state fee  ‘Privacy by Default’

Our Top 3 Recommended Services

Northwest
Northwest R.A.
$39
Trusted by 3 Million Clients
Over 900 Employees
Registered Agent (Included)
Best Privacy Policy
Virtual Office, Business Phone
Bizee
Bizee
$0
1 Million+ Businesses Formed
Registered Agent First Year Free
Get a Virtual Office
No Hidden Fees
20 Years Experience
ZenBusiness
ZenBusiness
$0
300,000+ Businesses Formed
Worry-Free Compliance
Registered Agent $199
Business Website, Email
Get a Virtual Office

Forming an LLC in Tennessee for $0 (DIY Summary)

Here’s a brief step-by-step guide to help you through the DIY process, along with relevant links to official resources:

Step 1: Choose a Name for Your LLC

The first step in forming an LLC in Tennessee is selecting a unique and distinguishable name for your business.

Ensure that your chosen name is not already in use by another company.

You can check the availability of your desired LLC name by performing a search on the Tennessee Secretary of State’s business search page.

Step 2: Appoint a Registered Agent

Every LLC in Tennessee must have a registered agent, also known as a statutory agent, who acts as the official point of contact between the LLC and the state.

The registered agent must have a physical address in Tennessee and be available during business hours to receive legal documents on behalf of the LLC.

You can appoint yourself as the registered agent or hire a professional registered agent service.

Step 3: File Articles of Organization

To legally establish your LLC in Tennessee, you need to file Articles of Organization with the Secretary of State.

This document includes essential information about your LLC, such as its name, address, registered agent, and purpose.

You can file the Articles of Organization online through the Tennessee Secretary of State’s online filing system.

Step 4: Create an Operating Agreement

While not required by law, it is highly recommended to create an operating agreement for your LLC.

This agreement outlines the ownership structure, member responsibilities, profit-sharing, and other important details of your LLC’s operations.

Having a comprehensive operating agreement can help prevent misunderstandings and disputes among members in the future.

Step 5: Obtain Necessary Permits and Licenses

Depending on the nature of your business, you may need to obtain specific permits and licenses to operate legally in Tennessee.

The Tennessee Department of Revenue and Tennessee Department of Commerce and Insurance websites can provide guidance on the licenses and permits required for your particular industry or profession.

Step 6: Register for State Taxes

LLCs in Tennessee are subject to various state taxes, including sales tax, franchise and excise tax, and withholding tax.

You will need to register your LLC with the Tennessee Department of Revenue to fulfill your tax obligations.

It is advisable to consult with a tax professional to ensure compliance with all tax requirements.

Step 7: Comply with Ongoing Requirements

Once your LLC is formed, there are ongoing requirements to maintain its legal status.

This includes filing an annual report with the Secretary of State and keeping your business records up to date.

The Tennessee Secretary of State’s Business Services Division website provides detailed information on these ongoing obligations.

Tennessee LLC: Definitions

  1. Limited Liability Company (LLC): A legal business entity that provides limited liability protection to its owners while allowing flexibility in management and taxation.
  2. Tennessee Secretary of State: The government agency responsible for overseeing business registrations and maintaining business records in Tennessee. Their website provides information and resources for forming an LLC in the state.
  3. Articles of Organization: A document filed with the Tennessee Secretary of State to formally create an LLC. It includes essential information about the LLC, such as its name, registered agent, and purpose.
  4. Registered Agent: A person or entity designated to receive legal and official documents on behalf of an LLC. The registered agent must have a physical address in Tennessee and be available during business hours.
  5. Operating Agreement: A legal document that outlines the internal operations, ownership structure, and management of an LLC. While not required in Tennessee, having an operating agreement can clarify the rights and responsibilities of LLC members.
  6. Employer Identification Number (EIN): A unique nine-digit number issued by the Internal Revenue Service (IRS) to identify businesses for tax purposes. An EIN is necessary for an LLC that plans to hire employees or has certain tax obligations.
  7. Tennessee Department of Revenue: The state agency responsible for administering and collecting taxes in Tennessee. LLCs may have tax obligations and should register with the Department of Revenue for tax purposes.
  8. Business License: A permit or authorization required by the state or local government to operate a business. Depending on the nature of the LLC’s activities, it may need to obtain specific licenses or permits to comply with Tennessee regulations.
  9. Annual Report: An annual filing required by the Tennessee Secretary of State to maintain the LLC’s active status. The report updates the state with the LLC’s current information, such as contact details and ownership structure.
  10. Foreign LLC: An LLC formed in a state other than Tennessee but operating within Tennessee. A foreign LLC must register with the Tennessee Secretary of State to conduct business legally in the state.
  11. Franchise and Excise Taxes: Taxes imposed on businesses operating in Tennessee. LLCs may be subject to franchise and excise taxes based on their income or net worth, and they must fulfill their tax obligations with the Tennessee Department of Revenue.
  12. Certificate of Good Standing: A document issued by the Tennessee Secretary of State that confirms an LLC’s legal existence and compliance with state requirements. It may be required for various purposes, such as obtaining financing or entering into contracts.

Remember to consult with a qualified attorney or accountant for professional advice regarding the specific requirements and regulations related to forming an LLC in Tennessee.

Extended Version

It is a great time for a limited liability company (or LLC) to be launched in Tennessee. The state experienced a huge increase in business formations recently.

Nearly 20,000 new companies and corporations were founded between January and March this year. More people are now able to start new businesses with the help of government financial aid than ever before.

Are you considering starting a Tennessee LLC? Here’s a guide to help you get started with a Tennessee LLC.

If you want to use an LLC formation service, visit our list of the best LLC services in Tennessee.

Before starting an LLC in Tennessee

There are some important details that you should remember when you start forming your limited-liability company. You can read the following sections to find out what you should do before you start your LLC formation.

Research Your LLC Business Name

Imagine if you were to file paperwork to establish a Tennessee LLC and the name you selected is not available. It is important to verify that your business name is available before you set up your company. This can be done via the Name availability search engine at the Secretary of State’s Division of Business Services or by calling (615-741-2286).

Your business name must stand out from other entities that are registered with the state. You should also be aware of the following:

  • The words “limited liability company” must be included in your company name or an acceptable abbreviation such as “LLC” and “L.L.C.”
  • Tennessee Department of Financial Institutions must grant permission to companies wishing to use certain words, such as “bank” and “trust”, in their names.

After you have confirmed that your name is available, you may reserve it for 120-days by submitting form SS-9425 and the Application for Name Reservation. Although you don’t have to reserve your name immediately, it is a good idea. The fee for Tennessee Secretary of State is $20. You can pay by check, cashier’s cheque or money order. Send your completed form to 312 Rosa L. Parks Ave. FL 6 Nashville, TN 37243.

Mailing: Include the form and payment in one envelope. Write “Tennessee secretary of state, ATTN Corporate Filing” above your address.

Appoint a Registered Agent

Tennessee LLCs need a registered agent. The agent receives legal documents for the business and forwards them on your behalf to the appropriate person at the business. The registered agent can be you or an LLC member. Your agent must be at minimum 18 years old and reside in Tennessee.

You can also employ a third-party entity as your registered agent. For increased privacy and reliability, small business owners often hire registered agents to represent them in multiple states. The annual cost is typically between $100 and $300. To ensure that you get the best value for your money, it is important to do some research before hiring someone.

Filing Your LLC Paperwork

There are many options available in Tennessee for LLC filings. You can file electronically or prepare Articles of Organization online with FormSS-4270. Once you have completed the forms, you can print them and mail them to Secretary of State. A blank form can be printed and filled out. You can mail it to the Secretary of State. Tennessee charges $50 per LLC member. There is a $300 minimum and a $3000 maximum. Online filings require a processing fee.

International LLCs can apply for authority to transact in Tennessee using Form SS-4233 (Application for Certificate of Authority). The fees and procedures for foreign LLCs are the same as those of new Tennessee LLCs.

What to do after starting your LLC in Tennessee

After you have established your Tennessee LLC successfully, there are several steps that you can take to ensure its success over the long-term. These actions will help to keep your company in good standing, and ensure that it succeeds. There are many options available to you if you want to close your LLC.

Register for an Employer Identification Number (EIN).

Most businesses require an EIN (sometimes called a Federal Tax Identification Number or Federal Employer Identification Number, FEIN), in order to be eligible for the Federal Employer Identification Number (FEIN). It is a great alternative to using your Social Security number. This will protect it from potential fraud and exposure. EINs can be obtained free of charge on the IRS Website.

Make an LLC Operating Agreement

Although not required by law, operating agreements are essential because they provide a solid foundation for your LLC’s long-term success. These documents will confirm everything, from who has the most influence on company decisions to how profits or losses are shared to who is responsible for day-to-day business operations. An operating agreement is a document that helps to minimize disputes between members. It also gives legitimacy to your LLC and helps maintain its good standing.

Purchase a web domain and set up social media

You should not only start your LLC but also make an effort to establish an online pres

It is a great time for a limited liability company (or LLC) to be launched in Tennessee. The state experienced a huge increase in business formations in 2021. It was the largest ever. Nearly 20,000 new companies and corporations were founded between January and March. More people are now able to start new businesses with the help of government financial aid than ever before.

Are you considering starting a Tennessee LLC. Here’s a guide to help you get started with a Tennessee LLC.

Before starting an LLC in Tennessee

There are some important details that you should remember when you start forming your limited-liability company. You can read the following sections to find out what you should do before you start your LLC formation.

Research Your LLC Business Name

Imagine if you were to file paperwork to establish a Tennessee LLC and the name you selected is not available. It is important to verify that your business name is available before you set up your company. This can be done via the Name availability search engine at the Secretary of State’s Division of Business Services or by calling (615-741-2286).

Your business name must stand out from other entities that are registered with the state. You should also be aware of the following:

  • The words “limited liability company” must be included in your company name or an acceptable abbreviation such as “LLC” and “L.L.C.”
  • Tennessee Department of Financial Institutions must grant permission to companies wishing to use certain words, such as “bank” and “trust”, in their names.

After you have confirmed that your name is available, you may reserve it for 120-days by submitting form SS-9425 and the Application for Name Reservation. Although you don’t have to reserve your name immediately, it is a good idea. The fee for Tennessee Secretary of State is $20. You can pay by check, cashier’s cheque or money order. Send your completed form to 312 Rosa L. Parks Ave. FL 6 Nashville, TN 37243.

Mailing: Include the form and payment in one envelope. Write “Tennessee secretary of state, ATTN Corporate Filing” above your address.

Choose a representative

Tennessee LLCs need a Registered Agent. The agent receives legal documents for the business and forwards them on your behalf to the appropriate person at the business. The registered agent can be you or an LLC member. Your agent must be at minimum 18 years old and reside in Tennessee.

You can also employ a third-party entity as your registered agent. For increased privacy and reliability, small business owners often hire registered agents to represent them in multiple states. The annual cost is typically between $100 and $300. To ensure that you get the best value for your money, it is important to do some research before hiring someone.

Filing Your LLC Paperwork

There are many options available in Tennessee for LLC filings. You can file electronically or prepare Articles of Organization online with Form SS-4270. Once you have completed the forms, you can print them and mail them to the Secretary of State. A blank form can be printed and filled out. You can mail it to the Secretary of State. Tennessee charges $50 per LLC member. There is a $300 minimum and a $3000 maximum. Online filings require a processing fee.

International LLCs can apply for authority to transact in Tennessee using Form SS-4233 (Application for Certificate of Authority). The fees and procedures for foreign LLCs are the same as those of new Tennessee LLCs.

What to do after starting your LLC in Tennessee

After you have established your Tennessee LLC successfully, there are several steps that you can take to ensure its success over the long-term. These actions will help to keep your company in good standing and ensure that it succeeds. There are many options available to you if you want to close your LLC.

Register for an Employer Identification Number (EIN).

Most businesses require an EIN (sometimes called a Federal Tax Identification Number or Federal Employer Identification Number, FEIN) in order to be eligible for the Federal Employer Identification Number (FEIN). It is a great alternative to using your Social Security number. This will protect it from potential fraud and exposure. EINs can be obtained free of charge on the IRS Website.

Make an LLC Operating Agreement

Although not required by law, operating agreements are essential because they provide a solid foundation for your LLC’s long-term success. These documents will confirm everything, from who has the most influence on company decisions to how profits or losses are shared to who is responsible for day-to-day business operations. An operating agreement is a document that helps to minimize disputes between members. It also gives legitimacy to your LLC and helps maintain its good standing.

Purchase a web domain and set up social media

You should not only start your LLC but also make an effort to establish an online presence for the brand. Customers often search online for companies, and your online presence can have a negative impact on how they perceive you.

A website domain and a social media profile are ideal tools for establishing a point of contact between you and your customers. It’s a good investment for your brand as it will help you spread the word about your Tennessee LLC.

Send an annual report

Tennessee LLCs must submit an annual report every year. It must be submitted annually to avoid it being rejected.

  • Sign and date correctly
  • Type up in ink or type it up

An annual report for LLCs up to six members must be submitted with a $300 filing fee and $50 for each additional member. The maximum fee is $3,000. If your LLC’s registered agent changes, there is an additional $20 fee. Keep up with your annual reports, it is vital for maintaining good standing in Tennessee.

You can avoid spending time and money by following these steps to get your LLC registered in Tennessee. We hope you find this guide helpful as thousands of new businesses open in Tennessee’s “Volunteer State.”

Most Frequently Asked Questions

What is an LLC?

A limited liability corporation combines the flexibility and ease of a sole proprietorship or partnership structure with the greater risk protection offered by a corporate structure. LLC owners, also known as “members”, have limited liability. This means that their personal liability to the company is limited to what they have invested. It does not cover losses or debts beyond that amount.

Members of an LLC are subject to taxes by default. This is the same as for owners of a general partnership or sole proprietorship. This structure is commonly referred to as a “pass-through” tax structure. If the LLC meets certain criteria, it can choose to be taxed either as a C corporation (C-corporation) or an S corporation (S corporation). Small business owners prefer LLCs because of their simplicity and flexibility.

What is the cost of a Tennessee LLC?

Tennessee charges $50 per member for establishing an LLC. There is a $300 minimum and $3000 maximum fee.

How do I register an LLC in Tennessee

For domestic LLCs, you will need to complete Form SS-4270. For foreign entities, please fill out SS-4233. You can submit forms online or by post. For LLC formation in Tennessee or to be authorized to do business in Tennessee, you will need to pay at least $300 and a maximum $3,000, respectively.

How can I file taxes for my LLC

There are many options available, and there is no one-size fits all solution. Most LLCs are treated the same as sole proprietorships and partnerships. The owners of LLCs are taxed according to their personal tax returns. Business income and expenses can be reported. However, LLCs can be taxed as corporations. This approach is beneficial to some LLC owners. Discuss your options with an accountant to determine the best way for you to manage your LLC taxes.

What are the advantages of forming an LLC?

Corporations and LLCs are business entities that help protect their owners against liability for business debts. LLCs are more flexible than corporations and are easier to manage.

Presence for the brand. Customers often search online for companies, and your online presence can have a negative impact on how they perceive you.

A website domain and a social media profile are ideal tools for establishing a point of contact between you and your customers. It’s a good investment for your brand as it will help you spread the word about your Tennessee LLC.

Send an annual report

Tennessee LLCs must submit an annual report every year. It must be submitted annually to avoid it being rejected.

  • Sign and date correctly
  • Type up in ink or type it up

An annual report for LLCs up to six members must be submitted with a $300 filing fee and $50 for each additional member. The maximum fee is $3,000. If your LLC’s registered agent changes, there is an additional $20 fee. Keep up with your annual reports, it is vital for maintaining good standing in Tennessee.

You can avoid spending time and money by following these steps to get your LLC registered in Tennessee. We hope you find this guide helpful as thousands of new businesses open in Tennessee’s “Volunteer State.”

Most Frequently Asked Questions

What is an LLC?

A limited liability company combines the flexibility and ease of a sole proprietorship or partnership structure with the greater risk protection offered by a corporate structure. LLC owners, also known as “members”, have limited liability. This means that their personal liability to the company is limited to what they have invested. It does not cover losses or debts beyond that amount.

Members of an LLC are subject to taxes by default. This is the same as for owners of a general partnership or sole proprietorship. This structure is commonly referred to as a “pass-through” tax structure. If the LLC meets certain criteria, it can choose to be taxed either as a C corporation (C-corp) or an S corporation (Scorp). Small business owners prefer LLCs because of their simplicity and flexibility.

What is the cost of a Tennessee LLC?

Tennessee charges $50 per member for establishing an LLC. There is a $300 minimum and $3000 maximum fee.

How do I register an LLC in Tennessee

For domestic LLCs, you will need to complete Form SS-4270. For foreign entities, please fill out SS-4233. You can submit forms online or by post. For LLC formation in Tennessee or to be authorized to do business in Tennessee, you will need to pay at least $300 and a maximum $3,000, respectively.

How can I file taxes for my LLC

There are many options available, and there is no one-size fits all solution. Most LLCs are treated the same as sole proprietorships and partnerships. The owners of LLCs are taxed according to their personal tax returns. Business income and expenses can be reported. However, LLCs can be taxed as corporations. This approach is beneficial to some LLC owners. Discuss your options with an accountant to determine the best way for you to manage your LLC taxes.

What are the advantages of forming an LLC?

Corporations and LLCs are business entities that help protect their owners against liability for business debts. LLCs are more flexible than corporations and are easier to manage.

 

author avatar
Brian Wilson Writer and Editor
Brian Wilson is the content manager and founder of LLC Radar. Brian grew up in North Texas, just outside of Dallas, and has a bachelor's degree in business from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications. Brian resides in Plano, Texas and he can be reached by email:   info@llcradar.com Phone: 972-776-4050
  Information provided on this website is for general information and educational purposes only. It is not intended to offer legal advice specific to your business needs. If you need legal advice, you should consult with an attorney. Rankings and reviews are the personal opinions of the authors and/or editors. For questions, while starting a business, we recommend consulting with an attorney or accountant.