Why Form an LLC in Tennessee
Tennessee is one of the fastest-growing states. Nashville ranks among top US cities. The state eliminated all personal income tax in 2021.
The per-member fee: $50 per member with $300 minimum. Applies to both filing and annual report.
Nashville is a healthcare, tech, and entertainment hub. Memphis is a global logistics center (FedEx HQ).
Franchise tax (0.25% on net worth) and excise tax (6.5% on net earnings) add costs for operating businesses.
Tennessee LLC Costs and Fees
Complete fee breakdown for Tennessee LLCs. State fees sourced from the Tennessee Secretary of State.
| Fee | Amount | When Due |
|---|---|---|
| Articles of Organization | $300 minimum | $50/member, min $300, max $3,000 |
| Annual report | $300 minimum/year | Same formula |
| Registered agent | $100-150/year | Ongoing |
| Name reservation | $20 | Optional - 120 days |
Step-by-Step: How to Form a Tennessee LLC
Step 1: Choose your LLC name
Your name must be distinguishable from existing entities. Must include "LLC" or "Limited Liability Company." Check availability on the Tennessee business search. Reserve a name for 120 days for $20.
Step 2: Appoint a registered agent
Every Tennessee LLC needs a registered agent with a physical Tennessee address (not a PO Box). USLLCGlobal includes one year of registered agent service in all packages.
Step 3: File Articles of Organization
File with the Tennessee Secretary of State through the Tennessee filing portal or by mail. Required information:
- LLC name with designator
- Registered agent name and address
- LLC mailing address
- Organizer name and address
- Member-managed or manager-managed
- $300 filing fee
Per-member fee structure
Tennessee charges $50 per member for both filing and annual report, with $300 minimum and $3,000 maximum. 1-6 members = $300. 10 members = $500. Adding members increases costs.
Step 4: Create an Operating Agreement
Not legally required in Tennessee but essential. Defines ownership, profit distribution, management, and exit provisions. Banks and the IRS expect to see it.
Step 5: Obtain an EIN
Your federal tax ID from the IRS. Required for bank accounts, hiring, and taxes. Non-residents can apply via Form SS-4 (4-6 weeks). USLLCGlobal handles EIN applications in every package.
Step 6: Open a US bank account
With your Articles of Organization, EIN, and Operating Agreement, open a US business account. Mercury, Relay, and Wise Business allow remote opening for non-residents.
Annual Compliance Requirements
What you need each year to keep your Tennessee LLC in good standing:
- Annual report: Anniversary month. $50/member, min $300, max $3,000.
- Federal tax filing: Form 5472 for non-US owners. $25,000 penalty.
- Franchise/excise taxes: Excise 6.5% on earnings, franchise 0.25% on net worth.
- Registered agent: Maintain physical TN address.
- FinCEN BOI Report: File within 30 days.
Tennessee Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| Personal income tax | $0 | No income tax |
| Excise tax | 6.5% | On net earnings |
| Franchise tax | 0.25% | On net worth, min $100 |
| State sales tax | 7% + local | Among the highest |
Important tax note
Forming in Tennessee does not eliminate federal US tax obligations. Non-resident owners must file Form 5472 annually ($25,000 penalty for non-filing). Consult a qualified tax professional.
Processing Times
| Option | Time | Fee |
|---|---|---|
| Standard | 1-2 business days | $0 (included) |
| Same-day (standard is fast) | As described | $0 additional |
Pros and Cons of a Tennessee LLC
Advantages
- No personal income tax
- No capital gains tax
- Nashville — fastest-growing city
- Fast processing (1-2 days)
- Major logistics hub (FedEx)
- World-class healthcare
- Growing tech sector
Disadvantages
- $300 minimum filing fee
- $300 minimum annual report
- Franchise tax (0.25%, min $100)
- Excise tax (6.5% on earnings)
- 7% sales tax — among highest
- Per-member fees increase costs
The bottom line
Excellent for doing business in Tennessee. But $300/year minimum plus franchise and excise taxes make it more expensive than it appears. For non-residents, Wyoming is significantly cheaper.
Our Pricing: Tennessee LLC Formation
Domestic Filers (US Residents)
$249 service + $300 state fee
International Filers (Non-US)
$349 service + $300 state fee
Every package includes:
- Articles of Organization filing with Tennessee Secretary of State
- One year registered agent service
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital delivery within 24 hours of approval
- Compliance calendar
- Dedicated email and WhatsApp support
No hidden fees. No upsells. The price listed is the price you pay.
Form your Tennessee LLC today
$549 all-in for US residents. $649 for international filers. Formed in 1-2 business days.
Start My Tennessee LLC →