How to Form an LLC in Tennessee (2026): Real Costs, Real Steps

Tennessee charges a $300 filing fee to form an LLC—no state income tax on pass-through earnings, but you'll pay the Franchise & Excise Tax once revenue hits $100,000. Most entrepreneurs file online with the Secretary of State in under 10 minutes. You'll need a registered agent (Northwest at $125/year handles this seamlessly), an EIN from the IRS, and an operating agreement to keep your liability shield intact. First-year all-in cost runs about $425 if you skip lawyers and use Mercury for business banking. Tennessee requires an annual report filed by the first day of the fourth month after your fiscal year-end—miss it and you're hit with late fees and eventual dissolution.

Year-1 Cost Table

Tennessee LLC year-1 cost breakdown (2026)
Item Cost Source
Articles of Organization (TN SOS) $300 cite
Annual Report (due 1st day, 4th month after FYE) $300 cite
Registered Agent (Northwest, 1 yr) $125 cite
Franchise & Excise Tax (if revenue >$100k) $0–varies cite
Year-1 Total (typical single-member) ~$425 cite

The 6 Steps

  1. Step 1: File Articles of Organization

    Submit the formation document to the Tennessee Secretary of State. See the cost table above for the current filing fee.

  2. Step 2: Appoint a Registered Agent

    Every Tennessee LLC needs a registered agent with a Tennessee street address. You can serve yourself, but most founders use a commercial RA — Northwest is our default pick.

  3. Step 3: Get an EIN (Federal Employer Identification Number)

    Apply with the IRS using your stamped Articles of Organization. Free, takes 5 minutes online.

  4. Step 4: Adopt an Operating Agreement

    Required by best practice — banks routinely request it before opening business accounts.

  5. Step 5: Open a Business Bank Account

    Mercury for software/online businesses; a local credit union for cash-heavy retail. Keep personal and business finances separate from day one.

  6. Step 6: File State Tax Registrations

    Register for Tennessee state taxes (sales tax permit, payroll registration if you have employees, etc.) before you transact.

Recommended Tools

Northwest vs ZenBusiness for Tennessee LLCs

Verdict (as of 2026): Northwest Registered Agent is our default pick for Tennessee LLCs. They publish a Tennessee-specific registered-agent page (linked in the cost table) and do not upsell add-ons at checkout. ZenBusiness wins only if you want bundled formation in a single flow.

Criterion Northwest ZenBusiness
Registered-agent only price (Tennessee)$125/yr$199/yr
Bundled formationOptional add-onIncluded in formation plans
Privacy (address shielding)StrongStrong
Upsells at checkoutNoneSeveral
Annual-report filing service$100/yr add-on$199/yr add-on

Frequently Asked Questions

Does Tennessee have state income tax on LLC profits?

No. Tennessee repealed its Hall income tax in 2021, so single-member and multi-member LLCs pay zero state income tax on pass-through earnings. You will owe federal income tax and self-employment tax, and if your LLC's gross receipts exceed $100,000 you must file the Franchise & Excise Tax return with the Tennessee Department of Revenue.

What is Tennessee's Franchise & Excise Tax and when do I owe it?

Tennessee's Franchise Tax (0.25% of net worth) and Excise Tax (6.5% of net earnings) apply to LLCs with gross receipts over $100,000. The first $100,000 in receipts is exempt, so most small single-member LLCs pay nothing. Returns are due by the 15th day of the fourth month after your fiscal year-end.

How much does it cost to file Articles of Organization in Tennessee?

The Tennessee Secretary of State charges $300 to file Articles of Organization online or by mail. Expedited processing (24-hour) adds $100; same-day processing costs $200 extra. There is no separate name-reservation fee if you file Articles immediately.

Can I use a PO box as my principal office address in Tennessee?

No. Tennessee requires a physical street address for your principal office on the Articles of Organization. Your registered agent address must also be a Tennessee street address. You may use a commercial mail-receiving service with a street address, but standard USPS PO boxes are not permitted.

Do I need an operating agreement for my Tennessee LLC?

Tennessee does not legally require a written operating agreement, but drafting one is essential to maintain liability protection, document profit splits, clarify member responsibilities, and satisfy banks when opening business accounts. Most Mercury and traditional banks will ask for your operating agreement during account setup.

Annual Filing Deadline

Tennessee annual reports are due by the first day of the fourth month after your fiscal year-end (April 1 for calendar-year LLCs); the state charges $300 per report.

Authoritative Sources

Other States

Skip the research — let AthenAI form your Tennessee LLC