How to start an LLC in Tennessee in 2024 (2024)

If you’re starting a new business, forming an LLC can help you separate your personal from business assets and liabilities. It can also bring credibility and branding opportunities to your business endeavors.

Here are the steps to start an LLC in Tennessee:

• Name your LLC.
• Select a registered agent.
• Submit your LLC articles of organization.
• Create an operating agreement.
• Obtain an EIN.
• Apply for required business license(s).
• File an annual report.

7 steps to start an LLC in Tennessee

1. Name your LLC

To name your business, begin by reviewing Tennessee’s business naming guidelines. Brainstorm an appropriate name for your LLC and check its availability for use in Tennessee and nationally.

To check the name’s availability, search Tennessee’s business name availability database to ensure the name is not already registered to another Tennessee business. In addition, run your name through the U.S. Patent and Trademark Office’s trademark database to ensure the name is not protected from infringement nationally. You may also want to run it through a domain name search tool like GoDaddy’s and social media channels to ensure it is available for digital marketing purposes.

If your chosen name is already in use in state or national databases, refer back to the Tennessee business naming guidelines to learn how to distinguish the name from the unavailable option.

If you are not ready to register your LLC, you can reserve the name for $120 by submitting form SS-9425 with a $20 filing fee.

2. Select a registered agent

Tennessee requires an LLC to maintain an active and valid registered agent for as long as it operates. Your registered agent will accept legal or official documents on your LLC’s behalf, such as tax documents or notices your company was named in a lawsuit.

The state will permit you to serve as your LLC’s registered agent. However, some business owners hire a registered agent service to handle the responsibility. We provide more information on how to select a registered agent and its responsibilities in our registered agent guide.

3. Submit your LLC articles of organization

Submitting your articles of organization legally forms your LLC with the Tennessee Department of State. You can fill out the articles of organization form online using Tennessee’s business services online system.

Along with your application, you must submit a filing fee of $50 per LLC member (minimum $300 and maximum $3,0000 fee).

If the new business formation process seems overwhelming, try using the interactive platform Tennessee SmartStart. The tool can help you register your LLC and find business resources.

Pro tip: “Forming an LLC does not protect your brand name! An LLC name and a brand name are different things and the only way to own your brand name is to register it as a trademark,” says Manning-Carroll, business lawyer at Manning Carrol Law.

4. Create an operating agreement

“The LLC operating agreement is one of the most important documents you will need when forming an LLC because it establishes your corporate structure and provides you with legal liability protection for your personal assets. The operating agreement is not required by Tennessee law, but you will need an operating agreement to open a business bank account and apply for business funding,” says Manning-Carroll.

Read our LLC operating agreement guide to learn what you should include in an agreement and how to use one to support your business and its members.

5. Obtain an EIN

An employer identification number (EIN) is assigned to a business by the IRS. It identifies a business for tax administration purposes just as a Social Security number identifies a person. An EIN is required to open a company bank account, pay taxes, hire staff and obtain business licenses.

To obtain an EIN for free, visit the IRS website. The application process takes about 15 minutes to complete and you’ll receive your EIN instantly.

6. Apply for required business license(s)

In Tennessee, most businesses must obtain a business license to operate. They’re issued by Tennessee city or county clerks and come with a $15 filing fee.

The only exception is if your business earns under $3,000 in gross sales, a real possibility if you are just launching your business. If your business has earned more in gross sales, you may either need a minimum activity license or a standard business license.

• Minimum activity license: You need a minimum activity license if your company’s gross sales fall between $3,000 and $100,000 annually.
• Standard business license: You need a standard business license if your company’s gross sales exceed $100,000. Unlike a minimum activity license, you must also open a business tax account and file business taxes with the state’s Department of Revenue.

In both cases, paying your taxes renews your license through your county clerk’s office.

In addition to a general business license, depending on your business’s industry, location and activities, you may also need a professional license. You can search by topic to find out which licenses apply to your LLC using Tennessee’s license search tool.

7. File an annual report

An annual report updates the state on key business information, such as the LLC’s contact information. Tennessee requires you to file an LLC annual report through the Tennessee Secretary of State’s annual report filing portal. It costs between $300 and $3,000 annually to file this form. While the base fee is $300, the fee increases by $50 for every member of an LLC over the six-member threshold with a cap of $3,000.

If you have questions, Tennessee state offers a video walkthrough for filing your annual report. For answers to more general annual report questions, visit our guide on LLC annual reports.

Pro Tip: You don’t have to wait to file your annual report to update your LLC’s details. “If your business information changes after you form an LLC, it is important to update your registration records with the Secretary of State so that you won’t miss any important communications from the state about your LLC,” says Manning-Carroll.

Find the best LLC services for Tennessee: Best LLC services

Frequently asked questions (FAQs)