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Basic
$199
Fees for filing legal documents to register or maintain a business.
02 weeks processing
Agent fee
Registered Address
Document filing with the Secretary of State
Standard
$499
Fees for filing legal documents to register or maintain a business.
05 days processing
Includes everything in basic package
Comprehensive name check
Preparation of Articles of Incorporation
Lifetime customer support (phone & email)
Federal Tax ID (EIN) Obtainment Service
Premium
$599
Fees for filing legal documents to register or maintain a business.
01 day processing
Includes everything in standard package
2 hours of free tax consultation
Key Points of Tennessee LLCs
Favorable Tax Environment
Tennessee LLCs benefit from pass-through income treatment and are subject to both Franchise & Excise Taxes, which together provide a predictable tax structure.
Strong Liability Protection
Tennessee law provides LLC members with solid protection, shielding their personal assets from business obligations and debts.
Clear Compliance Framework
Tennessee maintains a transparent and standardized formation and reporting system, with clear deadlines and moderate fees for both formation and annual filings.
Understanding Tennessee LLCs
A Tennessee LLC combines the liability protection of a corporation with the tax flexibility of a partnership, making it an attractive structure for business owners seeking both security and efficient taxation. It’s known for its reasonable formation fees, statutory clarity, and consistent legal treatment.
What is a Tennessee LLC?
A Tennessee LLC provides limited liability protection and flexible governance structures. It allows members to avoid personal liability for business debts and can be organized as either member-managed or manager-managed.
A Tennessee LLC offers several benefits, including:
Pass-through taxation, liability protection, straightforward compliance, and a balanced tax structure through Franchise & Excise Taxes. LLC owners appreciate the clear statutes and ease of doing business.
Why choose an LLC in Tennessee?
Choosing an LLC in Tennessee offers reliable asset protection, tax flexibility with pass-through treatment, and an efficient, business-friendly formation process. The state’s moderate fees and well-defined legal environment make it a practical choice for entrepreneurs.
Key Benefits Include:
Privacy Protection
Predictable Taxes
No Double Taxation
Legal Environment
Business Credibility
Clear Guidelines
Pros and Cons of an LLC in Tennessee
Starting a Tennessee LLC: Benefits
A Tennessee LLC protects personal assets from business liabilities, offers flexible management options, and benefits from pass‑through taxation. The process of formation is streamlined, with clear steps and manageable state fees.
Taxation of a Tennessee LLC
Tennessee LLCs are generally treated as pass‑through entities, meaning business income is reported on members’ personal tax returns. They are also subject to state Franchise & Excise Taxes, which assess based on net worth and income, but there is no separate state personal income tax on LLC income.
Starting a Tennessee LLC: Drawbacks
Although Tennessee LLCs are straightforward to form, they still involve state tax obligations via Franchise & Excise Taxes, which must be calculated and filed annually. Disclosure of registered agent and management details is required, and high membership-based fees can increase costs depending on the structure.
Who Can Form an LLC in Tennessee?
Any individual or business entity can form an LLC in Tennessee, including sole proprietors, partnerships, corporations, and existing foreign LLCs looking to register in the state. At least one organizer must be listed, and a registered agent in Tennessee is required.
Types of LLCs in Tennessee
Domestic LLC (Tennessee-based LLC)
A domestic LLC is formed under Tennessee law and operates within the state, offering limited liability protection and pass-through taxation.
Foreign LLC (Out-of-state LLC registering in Tennessee)
A foreign LLC operates in Tennessee but was initially formed in another state. It must register with the Tennessee Secretary of State by filing a Certificate of Authority, appoint a registered agent with a Tennessee address, and comply with state tax and reporting requirements.
Series LLC
Tennessee allows the formation of Series LLCs. A Series LLC can establish one or more independent “series,” each with separate rights, obligations, assets, and liabilities. Proper recordkeeping is required, and each series may be treated independently under state law if statutory requirements are met.
Professional LLC (PLLC)
Tennessee allows licensed professionals to form Professional Limited Liability Companies (PLLCs). All members must be properly licensed to render the specific professional services offered, and the PLLC must comply with applicable licensing board regulations.
How to Start an LLC in Tennessee
Choose a Business Name
Select a unique name that includes "LLC" or "L.L.C." and ensure it’s distinguishable from existing entities in Tennessee. Use the Secretary of State’s name search tool to verify availability.
Appoint a Registered Agent
Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Tennessee.
File the Articles of Organization
Submit Form LLC to the Tennessee Secretary of State, providing LLC name, principal office address, and registered agent details.
Create an Operating Agreement
Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.
Tennessee LLC Application
To start an LLC in Tennessee, the key step is filing the Articles of Organization (Form SS-4270) with the Tennessee Secretary of State. This officially forms your business as a legal entity under state law.
Required Information
- LLC name (with “LLC,” “L.L.C.,” or “PLLC” as required)
- Registered agent’s name and physical Tennessee address
- Business address (street address required; P.O. Box permitted for mailing)
- Organizer’s name and address
- Management structure (member-managed, manager-managed, or director-managed).
- Tennessee allows PLLCs for licensed professionals. These entities must comply with additional requirements set by the appropriate state licensing board.
The Articles of Organization must include:
Filing Options
- Online: Use Tennessee’s Business Services Online portal for fastest and most convenient filing.
- By Mail: Send completed Form SS-4270 with payment to: Secretary of State, Business Services Division, 312 Rosa L. Parks Ave., 6th Floor, Nashville, TN 37243.
- In Person: Deliver filings directly to the Secretary of State’s office; processing times may vary.
Post-Filing Requirements
- Annual Report: All LLCs must file an annual report with the Secretary of State and pay the corresponding fee to maintain good standing.
- Operating Agreement: Not filed with the state, but highly recommended for outlining internal roles and ownership.
- Foreign LLCs: Out-of-state LLCs must file a Certificate of Authority, appoint a Tennessee registered agent, and provide a Certificate of Existence or Good Standing from their home state.
Tennessee LLC Taxation
Franchise & Excise Taxes
Every Tennessee LLC must pay both franchise and excise taxes. The franchise tax is calculated based on the net worth or real tangible property of the company, with a minimum tax of $100 annually. The excise tax is based on the company’s net earnings, currently at 6.5%, and applies regardless of whether the LLC is active or inactive.
Sales and Use Tax
If a Tennessee LLC sells physical goods or provides taxable services, it must collect state and local sales taxes and remit them to the Tennessee Department of Revenue. Use tax applies when goods are purchased out of state for use within Tennessee.
Employer & Payroll Taxes
LLCs with employees must register and pay state withholding taxes and unemployment insurance tax. These obligations are in addition to federal payroll tax requirements.
Tennessee LLC Annual Filing (Annual Report)
What to File
Tennessee LLCs must file an Annual Report with the Secretary of State, which includes: LLC name, registered agent information, principal business address, and manager/member details if applicable. The report confirms or updates the state’s information on file.
Filing Deadlines
Annual reports must be filed by April 1 each year for LLCs using a calendar fiscal year (i.e., by the first day of the fourth month following the end of the fiscal year).
Fees & Consequences
The base filing fee for an LLC with six members or fewer is $300, plus an additional $50 for each member beyond six, up to a maximum of $3,000. Failure to file by the due date can result in loss of good standing, and continued non-filing may lead to administrative dissolution.
Expanding Your Tennessee LLC
As your business grows, you may want to expand operations into other states.
Registering a Foreign LLC in Tennessee
If your LLC was formed in another state but plans to operate in Tennessee, you must file a Certificate of Authority, designate a registered agent in Tennessee, and meet all state tax and reporting requirements.
Doing Business in Other States
To expand your Tennessee LLC into other states, register as a foreign LLC in each jurisdiction where you operate. This involves filing the required documents, obtaining a Certificate of Good Standing from Tennessee, appointing local registered agents, and adhering to local tax and licensing laws.
Find The Right State To
Form An LLC
Every state has different rules, costs, and considerations for LLC formation.
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Doing Business in Tennessee
Frequently Asked Questions
Yes, most states require you to have a registered agent to handle legal documents and notices during business hours.
While not always required by law, having an operating agreement is a smart move to outline your LLC’s rules and avoid disputes down the road.
An EIN is a federal tax ID; most LLCs need one to open a business bank account, file taxes, or hire employees.