Form an LLC in Tennessee
Start a Tennessee LLC by filing Articles of Organization with the Tennessee Secretary of State for a minimum filing fee of $300.
You can use our free tool to fill out the paperwork right here yourself. Or hire Northwest to do it for you and we’ll provide one year of registered agent service and a business identity—all for $39.
How to Start an LLC in Tennessee
A Limited Liability Company (LLC) is a permanent public record. Starting one requires sharing personal information with the government, banks, landlords, vendors, and of course, customers. We provide a Free Business Identity to anyone who needs it—that’s a domain name, website, phone line, email address, and Brand Protection on day one. This helps protect your privacy and keep you in control of your intellectual property.
1. Name Your LLC
Giving your LLC a name is both a legal requirement and an important part of creating your brand.
By law, your LLC name must:
- Have an accepted indicator such as limited liability company, L.L.C., or LLC
- NOT include words or abbreviations that could imply your LLC is a different type of entity, like corp or incorporated
- Not already be in use by another Tennessee business
If you’ve already grown attached to a potential name, the Tennessee Secretary of State’s office can tell you if it’s available, so go ahead and search business names in Tennessee.
Yes, you can reserve a business name in advance in Tennessee. If you want to reserve a name before filing formation paperwork, you can submit an Application for Name Reservation. This form lets you reserve a business name for up to 120 days and requires a $20 filing fee.
It costs $20 to file an Application for Registration of an Assumed Name. An assumed business name is how Tennessee refers to DBAs, or “doing business as” names. A DBA/assumed business name is any name you do business under other than the legal company name that appears on your formation paperwork.
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2. Register Your Domain Name
Next up, you’ll want to secure a domain name for your website. Why are these important? Just like you need a street address to help people find you on a map, you need a domain name to help people find you on the web.
For domain names, it’s better to register earlier rather than later. There are two basic reasons why:
- Credibility: When you bother to establish a professional domain name, you’re letting customers know you take your work seriously.
- Consistency: A domain name that connects to your brand name makes it simpler for customers to remember you, which makes them more likely to seek you out.
With over 25 years of helping clients build their businesses, at Northwest, we offer domain names in-house with our business identity services.
3. Appoint a Registered Agent
All businesses in Tennessee are required by law to have a registered agent. That registered agent can be you, a friend, a stranger, or a company like Northwest that you hire. But no matter who they are, they have to be willing to accept legal mail, notably service of lawsuits, on behalf of your business. Then they must forward that legal mail to you quickly. Other than that, your Tennessee registered agent must…
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Have a physical address within Tennessee, so no P.O. Boxes
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Be available during regular business hours to accept legal mail
Since we have been in business, our registered agent prices have not changed and our clients flourish because of it. See the 5-star reviews our customers gave us.
Yes, but make sure you’re fine with having your name and address listed on the public record first. You must also be available during regular business hours, so acting as your own registered agent isn’t the best idea if your business requires you to move around a lot during the day.
4. File Articles of Organization
To officially create your Tennessee LLC, you must file Tennessee Articles of Organization (LLC) with the Secretary of State’s Business Services Division and pay a minimum filing fee of $300 for LLCs with six members or fewer. If your LLC has more than six members, it will cost an additional $50 for each member, up to a maximum fee of $3,000.
Also note that everything you list on your Articles of Organization becomes part of the public record.
Processing time is one to 10 days, depending on your filing method.
Below is a list of required and optional information to put into your Articles of Organization in Tennessee:
- Company name
- Name consent (optional)
- Additional designation (optional)
- Registered agent name and address:
- Fiscal year close
- Effective date (optional)
- Management structure
- Number of members
- Duration
- Principal address
- Mailing address
- Non-profit LLC (optional)
- Professional LLC (optional)
- Series LLC (optional)
- Obligated member entity (optional)
- Prohibited businesses (optional)
- Additional provisions (optional)
- Organizer’s signature
The minimum filing fee is $300, and the maximum is $3,000. The amount you pay depends on the number of members in your LLC. If you submit your paperwork online and pay using a credit or debit card, you must also pay a service fee of 2.29%. f you pay using an e-check, you must pay a service fee of 95 cents.
You can submit your articles online, by mail, or in person.
Mail and in person:
Secretary of State
6th Floor – Snodgrass Tower
Attn: Corporate Filing
312 Rosa L. Parks Ave.
Nashville, TN 37243
Online:
Tennessee Secretary of State
Any names, addresses, and phone numbers listed on your Articles of Organization will become part of the public record. That makes it easier for spammers to find you.
If you hire Northwest, we’ll list our business address whenever possible on the form to give you an extra layer of privacy.
Yes, to make an amendment to your Tennessee Articles or Organization, you will need to file a SS-4247, Articles of Amendment to Articles of Organization (LLC) form with the Tennessee Department of State, Division of Business Services (DBS).
5. Create an Operating Agreement
An operating agreement details how your business will be run. This is an internal document, so you don’t have to file it with the state, but you still need to put some work into an operating agreement. The agreement should include information about how voting works, how membership gets transferred, and other important topics.
Contact a lawyer or use our free Tennessee LLC Operating Agreement Template.
Yes, although state law says it doesn’t have to be in writing unless specifically required by the Articles of Organization. But if you don’t put your operating agreement in writing, you’re taking a big risk. For one, no written agreement means that you could be subject to Tennessee’s default LLC laws, thereby giving you less control over your company.
You can customize the operating agreement to meet the specific needs of your business. That said, every operating agreement should cover basic topics like:
- Initial investments
- Profits, losses, and distributions
- Voting rights, decision-making powers, and management
- Transfer of membership interest
- Dissolving the businesses
6. Get an EIN
Most LLCs are required to obtain a federal Employer Identification Number (EIN) from the IRS. Your EIN is your company’s tax ID number, sort of like a social security number, but for businesses instead of individuals. You can get an EIN for free directly from the IRS, or hire us to handle it for you.
An EIN is required for multi-member LLCs and all businesses with employees. But even if you’re a one-person operation, an EIN is sometimes required to open a business bank account.
7. File Your Annual Report
Like most states, Tennessee requires you to file an annual report to keep the state updated on any changes with your company. For an LLC with six members or fewer, it costs $300 to file. For every additional member after six, it costs an extra $50, although $3,000 is the maximum amount any LLC has to pay.
Learn more about how to file an annual report in Tennessee.
Tennessee annual reports are due on the first day of the fourth month following the end of your business’ fiscal year. So if your fiscal year ends with the calendar year on December 31, your annual report would be due April 1.
A Tennessee LLC’s default tax status is pass-through entity, which means the profits pass through the LLC and get distributed to the members. Those members are then obligated to report the profits on their personal tax filings. At the federal level, LLCs must pay a 15.3% self-employment tax rate.
LLCs can also file paperwork with the IRS to be taxed as an S-corp or C-corp.
If you no longer want your LLC anymore, depending on your situation you can dissolve your LLC by filling an Notice of Dissolution or Articles of Dissolution with the Division of Business Services. Or you can hire us to file for you.
*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.
