How to Form an LLC in Tennessee in 7 Steps

The cost of having an LLC in Tennessee can vary depending on a variety of factors. Once you pay the filing fee, business expenses and state fees for LLCs may fluctuate according to the type of business and any taxes, fees, or other costs that apply. A list of common fees for LLCs in Tennessee can be found on the Secretary of State's website.

The filing fee for articles of organization is $50 per member at the time of filing. The minimum filing fee is $300, and the maximum is $3,000.

After you file your articles of organization and form your LLC, you need to pay $15 to register for the state business tax and apply for a state business license. If your LLC is in a city that has business licensing, an additional $15 fee is required and paid to the appropriate city official. Each year after your initial formation, you must pay $20 to file an annual report and $15 to renew any business licenses.

There are options when it comes to the types of LLCs you can form in Texas.

• Single-member LLC: If you are a solo entrepreneur or sole proprietorship, your LLC will be a single-member LLC. A single-member LLC has only one member who has control over the business. The owner of the LLC personally reports business income and pays the taxes.
• Multi-member LLC: If you have two or more members when you start your LLC, it's multi-membered and members share control. It can either be member-managed or members can put the responsibility of daily business operations into the hands of a group of managers for a manager-managed LLC. Members can act as both managers and members, or the members can choose to hire a different group of people as managers.
• Professional LLC: You can form a professional limited liability company (PLLC or professional LLC) if you and other members are properly licensed professionals practicing in industries such as law, medicine, accounting, or you fall under an exception permitted by state law.
• Series LLC: If you will be forming an LLC that will act an umbrella for several different companies, you can form a series LLC within a master LLC.

A certificate of formation is your initial LLC's formation document or charter and establishes the effective date of formation. You may need a copy to open a business bank account or apply for certain licenses and permits. You can request your certificate of formation from the Secretary of State. The fee is $20.

A certificate of good standing verifies your LLC's proper formation in Tennessee and compliance with state law. In Tennessee, it's called a "certificate of existence/authorization." This certificate is generally required to apply for business loans or to register as a foreign LLC in another state or jurisdiction. If you need a copy, you can pay the $20 fee and submit a request for your certificate of existence from the Secretary of State.

To form an LLC in Tennessee, you must choose a valid business name, select a registered agent with a physical address in Tennessee, file articles of organization with the Secretary of State, and pay the filing fee.

While Tennessee does not require you to file an operating agreement unless you have a board of governors managing your business, creating one can be an important part of your business plan and strategy.

LLCs are a common choice for new businesses because of the advantages this type of business structure offers. One of those benefits is the ability to provide owners or members with personal liability from the LLC's business debts and liabilities. LLCs can also be beneficial for tax purposes as “pass-through" entities that avoid double taxation. Taxes are passed to the business owner who is responsible for paying the business taxes.

To continue legally operating in Tennessee, you must comply with the state's laws and requirements for businesses. This means you:

• Register for state business taxes
• Obtain and renew required business licenses and permits
• File annual reports
• Report and pay federal, state, and local taxes and fees

No. In Tennessee, you're required to file "articles of organization" with the Secretary of State to form an LLC. The "certificate of formation" is the charter document issued by the Secretary of State to verify your LLC's proper formation. Unless an LLC is board-managed, an operating agreement is an optional document among members of an LLC and used for internal business purposes. It does not need to be filed with the Secretary of State.

Yes. If your LLC is doing business as (DBA) any name other than the one included on your articles of organization, you can apply to register an assumed limited liability company name and pay a $20 fee.

It depends on your LLC's type of business and location. Certain cities require businesses to obtain city business licenses and pay a licensing fee. Additional local permits may also apply for specific business activities. Also, some professions and industries will require professional licenses to operate in the state. The Tennessee state government website has a page about licenses and permits that explains if your type of business needs one.

Yes. Business entities that have not previously registered with the Tennessee Secretary of State can form an LLC with the Online Business Registration. The amount of the filing fee depends on how many members of the LLC exist at the time of formation, but the minimum fee to file is $300. Online filers can pay the filing fee by credit card. Many business owners choose to hire an LLC formation service to register online as a new LLC in Tennessee. Using a professional service helps to ensure that your articles of organization are properly filed with the Secretary of State.

The mailing address for the Secretary of State is:

Secretary of State's Office at 6th Floor - Snodgrass Tower
Attn: Corporate Filings
312 Rosa L. Parks Ave
Nashville, TN 37243

You can hire a registered agent company to ensure your LLC:

• Has a physical address in Tennessee
• Receives sensitive legal documents and other important notices
• Has availability to receive service of process during regular business hours

If you form your LLC in the state of Tennessee, it is a domestic LLC. If you form your LLC in another state or jurisdiction, it's a foreign LLC.

If you want to do business outside of the state of Tennessee, you will likely register as a foreign LLC in the new state or jurisdiction. You will submit an application and fee to the Secretary of State or government agency that oversees business formation in that state. You will also need to verify your LLC's legal status in its home state of Tennessee. Usually, you can do this by requesting a certificate of existence/authority (good standing) from the Tennessee Secretary of State to submit with your foreign LLC application.

An out-of-state LLC can operate in Tennessee by registering with the Tennessee Secretary of State. To do this, the foreign LLC must apply for a certificate of authority and include its certificate of existence, good standing, or similar document from the state or jurisdiction where it was originally organized. The filing fee is $50 per member in existence on the date of the filing, with a minimum fee of $300 and maximum fee of $3,000.

To legally dissolve your Tennessee LLC, confirm all business debts are paid and "wind up" any outstanding business activities. A notice of dissolution is filed with the Secretary of State. The filing fee is $20. Organizers of the LLC file articles of termination and pay the $20 filing fee.

No. Only a handful of states (Delaware, Nevada, New Mexico, and Wyoming) allow anonymous LLCs. In Tennessee, business formation documents are public record and include personal contact information for any organizers. Registering an anonymous LLC is often used as a way to start a new business while maintaining the privacy of the business owners.