Here’s how to start an LLC in Tennessee in one number: $300. That’s the minimum you pay the state to file your Articles of Organization, and it’s the only fee required to form the company. A formation service is optional, and you can file everything yourself with the Tennessee Secretary of State. This guide walks you through each step, what it costs, and what you have to keep up with afterward.
Last updated: October 13, 2026
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Key Takeaways
- The state filing fee is $50 per member, with a $300 minimum and a $3,000 maximum.
- A one-person LLC pays the $300 minimum.
- The annual report costs at least $300 every year. It’s due April 1 for LLCs with a December 31 fiscal year end.
- Tennessee’s minimum franchise tax is $100 a year, even if the LLC is inactive.
- An EIN from the IRS is free.
“Free” here means no middleman fee. The state’s filing fee is unavoidable, but you never have to pay anyone extra to file for you.
Tennessee LLC Costs at a Glance
| Item | Cost | Who you pay | When |
|---|---|---|---|
| Articles of Organization (Form SS-4270) | $50 per member, minimum $300, maximum $3,000 | Tennessee Secretary of State, Division of Business and Charitable Organizations | At formation |
| Annual report | $300 minimum, up to $3,000; increases $50 per member for every member over 6 | Tennessee Secretary of State | Every year; April 1 for LLCs with a December 31 fiscal year end |
| Franchise tax | Minimum $100 a year | Tennessee Department of Revenue | Yearly, whether the LLC is active or inactive |
| Excise tax | Based on net earnings | Tennessee Department of Revenue | Per Department of Revenue filing rules |
| EIN | $0 | IRS | Once, when you apply |
Sources: the Tennessee Secretary of State (Form SS-4270 and its FAQ page), the Tennessee Department of Revenue, and the IRS.
A member is an owner of the LLC. Forming a one-person LLC? You’re the only member, so you pay the $300 minimum.
How to Start an LLC in Tennessee: Step by Step
1. Choose and check your business name
Your LLC needs a name that isn’t already taken on the state’s records. Use the business name search on the Tennessee Secretary of State’s website, run by the Division of Business and Charitable Organizations. Search a few variations, because you want a name that’s clearly distinguishable.
Check the Secretary of State’s site for the naming rules, such as required wording like “LLC,” and for any name reservation option and its cost. Before you commit, also see whether the matching web domain and social handles are open.
2. Appoint a registered agent
A registered agent is the person or company designated to receive legal papers and official state mail for your LLC. You have three common options:
- Yourself, if you can reliably receive documents during business hours.
- Someone you trust, such as a business partner or family member, who agrees to take on the role.
- A commercial registered agent service, which charges its own fee. It’s optional, but it can make sense if you travel a lot or don’t want your home address on a public record.
Read the instructions on Form SS-4270 for the exact registered agent requirements. The form is where you’ll list your agent.
3. File the Articles of Organization (Form SS-4270)
The Articles of Organization is the document that legally creates your LLC. In Tennessee, it’s Form SS-4270, filed with the Tennessee Secretary of State, Division of Business and Charitable Organizations. The form itself sets the filing fee at $50 per member, with a minimum of $300 and a maximum of $3,000.
Say you’re forming a one-person LLC. You’re one member, so the fee is the $300 minimum. You complete the form, submit it to the Division of Business and Charitable Organizations, and pay the state.
Check the Secretary of State’s website for current submission methods and processing times, since those can change.
You never need a third party to submit it.
4. Create an operating agreement
An operating agreement is an internal document that spells out how your LLC is run: who owns what percentage, who makes decisions, and how profits are shared. The two common setups are member-managed (owners run the company) and manager-managed (appointed managers run it).
Tennessee does not require you to file the operating agreement with the Secretary of State, so you generally keep it with your business records. Even for a single-member LLC, a written agreement helps show that your business is separate from you personally, and banks sometimes ask to see it. Our 7-step overview shows where this document fits in the formation process.
5. Get a free EIN from the IRS
An EIN (Employer Identification Number) is your LLC’s federal tax ID, a bit like a Social Security number for the business. The IRS says you can get an EIN directly from it in minutes for free, and you never have to pay a fee for one.
Apply only at IRS.gov. Sites that charge for an EIN are charging for something the IRS gives away. Apply after your LLC is formed so you can use the legal name on your Articles.
Wondering how your LLC will be taxed federally, or whether an S corporation election makes sense? See our guide to LLC vs. S corp differences.
6. Handle Tennessee’s franchise and excise tax
This is the step that trips up new Tennessee founders. According to the Tennessee Department of Revenue, the minimum franchise tax is $100 a year. It’s payable by entities registered through the Secretary of State to do business in Tennessee, whether active or inactive. Excise tax is based on net earnings. Both are filed with the Department of Revenue.
In plain terms, even if your LLC earns nothing in a given year, being registered with the state can still create a franchise tax bill. Check the Department of Revenue’s website for current deadlines, forms, and how the tax is calculated for your situation.
Other taxes, such as sales tax, or local business licenses may also apply depending on what you sell and where you operate. Your state, city and county websites are the places to confirm that.
7. Open a business bank account
Once you have your Articles of Organization, EIN, and operating agreement, open a dedicated business bank account. Keeping business and personal money separate makes bookkeeping easier.
Many banks will ask for your formation documents and EIN. If you want an online-first option, Novo is one to consider. Compare it with your local bank or credit union on fees and features, and see our guide to what to compare before you apply for a business bank account.
8. Put the annual report on your calendar
Tennessee LLCs file an annual report with the Secretary of State every year. We cover the details below, but add the date to your calendar now.
How to Start an LLC in Tennessee: DIY vs. a Formation Service
The DIY route. You file Form SS-4270 yourself and pay the state fee. For a single-member LLC, formation costs $300, and the EIN costs $0. If you serve as your own registered agent and write your own operating agreement, your upfront cost stays at the state fee. Franchise tax is a separate, later obligation to the Department of Revenue.
The service route. Your total is the same $300 state fee plus whatever the service charges. Fees vary by company and package, so see our comparison of LLC formation services for real prices.
Here’s what a service can add:
- A guided questionnaire that catches errors before you submit
- Filing on your behalf, which saves time if you dislike paperwork
- Optional registered agent service, which keeps your address off public records
- Reminders for deadlines such as the annual report
- Template documents, such as an operating agreement
If you want those conveniences, Bizee is one formation service you can compare. Nothing it does is legally required, though. If you’re comfortable filling out a short form and setting a calendar reminder, you can skip it.
Keeping Your Tennessee LLC in Good Standing
Forming the LLC is the first step. Staying compliant is the ongoing part.
Annual report. According to the Tennessee Secretary of State, the annual report fee for LLCs is a $300 minimum, up to a maximum of $3,000. The fee increases by $50 per member for every member over 6. For companies with a fiscal year ending December 31, April 1 is the deadline to file.
A single-member LLC pays the $300 minimum.
If your LLC uses a different fiscal year end, check the Secretary of State’s website for your due date. Do the same for late-filing consequences and fees, and look them up there rather than assuming.
Franchise and excise tax. File with the Tennessee Department of Revenue, as described in step 6.
Keep records. Store your Articles, operating agreement, EIN confirmation letter, and annual filings together where you can find them later.
Curious how Tennessee stacks up against other states? Our LLC filing fees by state roundup puts the numbers side by side.
Quick Do-It-Today Checklist
- Search your name on the Tennessee Secretary of State’s business name search.
- Decide on your registered agent.
- Complete and file Form SS-4270 with the $300 minimum fee (or $50 per member if that’s higher).
- Write your operating agreement.
- Get your free EIN at IRS.gov.
- Check the Tennessee Department of Revenue for franchise and excise tax requirements.
- Open a business bank account.
- Mark April 1 (for a December 31 fiscal year end) for your annual report.
FAQ
How much does it cost to start an LLC in Tennessee?
The state filing fee for the Articles of Organization is $50 per member, with a minimum of $300 and a maximum of $3,000, according to Form SS-4270. A one-person LLC pays $300. A formation service, if you choose one, adds its own fee on top.
Do I have to pay an annual fee to keep my Tennessee LLC active?
Yes. The Tennessee Secretary of State says the annual report fee for LLCs is a minimum of $300, up to $3,000, increasing by $50 per member for every member over 6. The deadline is April 1 for LLCs with a December 31 fiscal year end.
Is there a Tennessee franchise tax for LLCs?
The Tennessee Department of Revenue says the minimum franchise tax is $100 a year. It’s payable by entities registered through the Secretary of State to do business in Tennessee, whether active or inactive. Excise tax is based on net earnings. Check the Department of Revenue’s site for how it applies to your LLC.
Do I need to pay for an EIN?
No. The IRS provides EINs for free, and you never have to pay a fee for one. Apply only on IRS.gov.
Do I need a formation service to start a Tennessee LLC?
No. You can file Form SS-4270 directly with the Tennessee Secretary of State, Division of Business and Charitable Organizations. A service is a convenience, not a requirement.
Your Next Step
Ready to move? Open the 7-step formation overview and keep it beside you while you complete Form SS-4270. If you’re weighing a second state, check the filing fees by state page first.
Disclaimer: The information in this article is for educational purposes only and does not constitute legal, tax, or financial advice. Business formation rules, fees, and deadlines vary by state and change often. Always consult a qualified attorney, CPA, or tax professional before making decisions about your business.
