Tennessee LLC Compliance Guide
Everything you need to legally form and operate a LLC in Tennessee. Filing fees, tax forms, ongoing requirements, and the trade-offs of this structure.
Is a LLC Right for You?
Most small businesses. Liability protection with minimal formality. Owner-operated shops, side businesses, rentals.
Self-employment tax on all profits until you elect S-Corp. Some states charge franchise tax or high annual fees.
Tax treatment
Pass-through by default. Can elect S-Corp taxation. No entity-level federal tax.
| Item | Tennessee Requirement |
|---|---|
| Formal state filing required | Yes — file Articles of Organization with the Tennessee Secretary of State. |
| State filing fee | $300 |
| Federal tax form filed | Form 1065 (multi-member) or Schedule C (single-member) |
| Employer Identification Number (EIN) | Required — apply free at irs.gov (5 minutes online) |
| Registered agent required | Yes — must have a physical Tennessee address available during business hours. |
| Annual/periodic report | annual — fee $300 |
| Franchise tax | Franchise & excise tax: 0.25% of net worth + 6.5% of net earnings. |
| State income tax | Tennessee has no individual income tax. |
Filing Sequence in Tennessee
- 1
Choose a business name
Search Tennessee SoS name database. Reserve the name if desired (~$25 fee, optional).
- 2
Get an EIN from the IRS
Free at irs.gov. Takes ~5 minutes online. Required for all business banking, payroll, and tax filings.
- 3
File formation documents ($300)
Submit Articles of Organization to Tennessee Secretary of State. Include registered agent info. Processing ~7 business days.
- 4
Register for state taxes
Register for sales tax if selling taxable goods/services in Tennessee.
- 5
Open a business bank account
Separate business finances from personal. Bank will require EIN, formation docs (for entities), and often an operating agreement.
Compare Other Structures in Tennessee
Not legal or tax advice.
State filing requirements change. Verify fees and deadlines with the TennesseeSecretary of State and Department of Revenue before filing. Structure choice has tax and liability implications — consult a licensed CPA or attorney for your specific situation.