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How to start an LLC in Tennessee

By Brent Chudoba, editor Updated

Forming an LLC in Tennessee costs $300 to file the Articles of Organization (Form SS-4270) with the Tennessee Secretary of State. After that you file an annual report of $300. Tennessee also charges a franchise or business tax (details below). Both the initial Articles of Organization filing fee and the mandatory annual report fee are $50.00 per LLC member, with a $300 minimum (covers up to 6 members) and a $3,000 maximum (reached at 60+ members), not a flat $300 as the collector reported. filingFee/annualReportFee here reflect the statutory minimum that applies to the typical (<=6 member) LLC; larger LLCs pay more. The annual report is due on or before the first day of the fourth month following the close of the LLC's fiscal year (T.C.A. Section 48-249-1017), filed online via the Secretary of State's TNCaB system.

How much does it cost to start an LLC in Tennessee?

Tennessee LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization (Form SS-4270))$300
Annual report$300/year
Franchise or business taxYes, see below
Registered agentRequired

Source: Tennessee Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Tennessee?

  1. Name your LLC. Pick a name that is available and meets Tennessee naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Tennessee requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization (Form SS-4270). Submit it to the Tennessee Secretary of State and pay the $300 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Tennessee charges $300 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Tennessee have a franchise tax on an LLC?

Tennessee imposes a combined Franchise & Excise Tax on LLCs doing business in or registered in the state. The franchise tax is 0.25% of net worth (assets minus liabilities) apportioned to Tennessee, with a $100 minimum, due regardless of whether the LLC is active or profitable. The excise tax is 6.5% of net earnings. Certain entities are exempt or excluded, e.g. Family-Owned Non-Corporate Entities (FONCE) meeting statutory ownership/asset tests, and some obligated member entities, corrected from the collector's claim that Tennessee has no franchise tax.

How is an LLC taxed in Tennessee?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Tennessee has no state individual income tax, so those pass-through profits face no state income tax, only federal tax. That is one reason Tennessee is a popular state to form in.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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