How To Start an LLC in Texas
Form a Tennessee LLC in 6 steps: choose a name, appoint a registered agent, file Form SS-4270 Articles or a Certificate of Organization with the Secretary of State, create an operating agreement, obtain an EIN, and secure required licenses and permits. Follow state naming rules and confirm local license requirements.
Starts at $0 + TN state fee and only takes 5-10 minutes
Last Updated: March 3, 2026
Beyond the beautiful scenery and music, the Volunteer State has a solid reputation for being friendly to business. In fact, Tennessee ranked #5 in CNBC’s Top States for Business 2021.
And, just as Tennessee is a business-friendly state, a limited liability company (LLC) is a business-friendly concept. It’s a business entity type that allows its owners (called “members”) to have the personal limited liability protection of a corporation with the tax benefits and flexibility of a sole proprietorship.
First, you’ll need to find an available name for your LLC and appoint a registered agent. From there, you’ll be able to file Articles of Organization with the Tennessee Secretary of State. Next, you’ll likely want to create an operating agreement and get a federal tax identification number.
Okay, here’s our step-by-step guide for how to create an LLC in Tennessee.
Pick an available name for your LLC. Brainstorm some LLC names that are memorable and convey what your business sells. Beyond that, though, you need to follow Tennessee’s rules for naming LLCs.
Here are some important guidelines to follow:
For a complete list of LLC naming rules, see Chapter 207 of the state’s Limited Liability Company Statutes.
Tennessee professionals like doctors, lawyers, or dentists have the option to create a professional limited liability company, an LLC organized to give professionals liability protections while complying with licensing requirements. For the most part, the process to start a PLLC is similar to a standard LLC. But there are a few different nuances to adhere to, and naming your PLLC is one of them.
When you name a PLLC, you’ll use a slightly different designator to end your name. “Professional limited liability company,” “Professional limited company,” or “limited liability professional company” are all acceptable choices. You can also use abbreviations of those designators: “P.L.L.C.,” “P.L.C.,” or “L.L.P.C.,” with or without the periods. Your name must not include “corporation” or “incorporated,” and you should also avoid using terms that mislead people about your business purpose.
Last but not least, please check with your industry’s licensing agency or regulatory board to see if there are any specific business naming requirements for your industry. If there are any rules, you’ll need to ensure your PLLC name upholds those requirements, as well.
How do you know whether your desired business name has already been claimed by someone else? You start by using the business name search engine on the Tennessee Secretary of State website.
The website cautions you not to assume that a name is available until you get official approval from the Secretary of State, either by having your Articles of Organization approved or by reserving a business name.
If you aren’t planning to file your Articles of Organization right away, consider reserving your business name to keep anyone else from claiming it in the meantime and to get confirmation that the name is available. Tennessee allows potential business owners to submit a name reservation application to reserve an available name for up to four months.
Before you make a final decision on a name, though, you have a couple of additional considerations.
The Tennessee Secretary of State doesn’t check to see whether the name you want to use is trademarked. So, even if they approve your business name, someone else with a federal or state trademark may later challenge your right to use the name in court.
It’s best practice to run a trademark database search on the U.S. Patent and Trademark Office website as well as on the state website (or have an attorney do so). Note that federally protected trademarks are nationwide; state-protected ones only apply within Tennessee (or the state that issued them).
Even if you don’t sell your products or services directly online, you’re going to want a presence on the web. At the very least, you want your company’s name, address, and contact info to pop up when potential clients search for it.
That’s why getting a good domain name that pairs well with your business name is so important.
Some companies may want to use an assumed name for their Tennessee LLC. In other states, this is known as a “doing business as” (DBA) name. This allows your company to separate services under various titles or to advertise without the mandated “LLC” designator.
You can register a DBA, known as an “assumed name” in Tennessee, by completing the online registration process through the Secretary of State’s website. You can also complete an Application for Registration of Assumed Limited Liability Company Name and mail in the form. The state charges a small fee for registering an assumed name.
Yes, you can change your LLC’s name in Tennessee by filing Articles of Amendment to the Articles of Organization with the Secretary of State.
No. At this time, only a few states allow the creation of anonymous LLCs.
Name a registered agent for your LLC. A Tennessee registered agent is an individual or business entity that receives legal notices (like service of process) and official government correspondence involving your company.
Tennessee law requires all LLCs to have a registered agent with a registered office where they will be available to receive notices in person. The registered office may be the same as any of the LLC’s places of business, but it doesn’t have to be. For example, if you’re running your LLC from your home and serving as your own registered agent, you can list your home address as your registered agent address. Keep in mind that you’ll need to be there in person to receive service of process during all normal business hours. For more information, check out the “General Provisions” section of Title 48 of Tennessee’s state statutes.
The registered agent may be:
Note that the registered office must be a physical street address, so you can’t use a P.O. box or something similar. The registered agent must also be available during regular business hours.
It’s crucial to pick the right person or service to fulfill your registered agent obligations. While it’s perfectly legal to appoint a friend or family member to fill this role or serve as your own agent, it isn’t always a good idea.
Look at it this way: your friends or family are probably going to go on vacation, get sick, or run errands sometimes. So your agent, whether intentionally or not, might not be present, and the process server wouldn’t be able to find them. In that case, the legal action against you could go forward without you even knowing about it.
You could also lose your good standing in the state. In severe cases, you might even face administrative dissolution.
Some business owners prefer to be their own registered agent, but there are drawbacks, like those we’ve just mentioned. There’s also the potential embarrassment of being served with a lawsuit while you’re in front of customers or employees.
File your Tennessee Articles of Organization. Once approved, this will officially register your Tennessee LLC in the eyes of the state.
To file with the Tennessee Secretary of State, you’ll need to make key information about your business ready and available. Make sure your chosen name has been researched and cleared. Double-check that you have all the contact information for your members and registered agent handy. The Tennessee Secretary of State accepts filings online, by postal mail, and by hand delivery, along with the relevant filing fee.
The Tennessee Articles of Organization form asks for the following information. Be aware that this information becomes available to be searched in public records once submitted.
You can apply online via the Tennessee Secretary of State website or print the paper form and mail it to:
Department of State
Corporate Filings
312 Rosa L. Parks Ave.
6th Floor, William R. Snodgrass Tower
Nashville, TN 37243
Note: if you’re filing as a PLLC, you’ll use the same version of the form. Tennessee doesn’t have a separate Articles of Organization for PLLCs. Just be sure that while you file, you complete all the sections related to a PLLC, including identifying your profession and confirming that you’re appropriately licensed.
Some entrepreneurs, especially if it’s near the end of the year, will delay their LLC filing date to January 1 of the coming year. This way, they can avoid the hassle and cost of having to pay taxes on an LLC in the current year. This is especially true if the future LLC owners don’t need to establish the company right away.
Ordinarily, the effective filing date would be at the time of filing. But you also have the option to tell the state that you want your effective date to be at a later time. You can choose to have your LLC’s effective date be up to 90 days past the date you submit the filing.
You should only need to file your Articles of Organization once. But if any of the original Articles of Organization information needs to be updated, altered, or expanded, your business is required to inform the state about the changes.
You would report these changes by filing Tennessee Articles of Amendment and paying a filing fee. If your Articles of Organization isn’t current, it could impact your ability to get a Tennessee Certificate of Existence (called a “Certificate of Good Standing” in most states). This document isn’t required to conduct business, but it can be important for business accounts, potential investors, and expanding your business to other states. Basically, failing to keep your business up to date with state requirements can limit your LLC’s potential future growth.
What is the processing time to form my Tennessee LLC?
The processing time will vary by factors like the time of year, but, generally speaking, filing online is much quicker than filing by postal mail. Many online filings are processed on the same day, while paper filings can take five to seven business days by mail, not counting the time in transit.
Yes, you can form an LLC in Tennessee as a non-U.S. citizen, but you will need to provide a registered agent with a physical street address in the state.
Make an operating agreement for your LLC. While it’s not a legal requirement to have a Tennessee operating agreement, it’s very wise to have one.
An operating agreement (OA) clearly defines the terms of ownership and management for an LLC. And, without one, you’ll be subject to Tennessee’s default rules for LLCs, which might not reflect the wants of yourself and the other members.
Here are some of the benefits an OA offers to owners of an LLC:
Here are some basic items you may want to include in your OA:
It seems like most of the content in your operating agreement is intended to avoid disputes among the LLC members, so you might think you don’t need one if your LLC is just one person. But potential investors, future business partners, and others may want to see your operating agreement, anyway.
Your operating agreement can also explain in detail what you want to happen to the business and its assets if you die or become incapacitated.
One more thing to consider: Someone could take an LLC owner to court to try to show that the owner and the LLC are the same entity so that they can go after the owner’s assets and bypass the personal asset protection. If that happens, having an operating agreement in place is one more thing further demonstrating to the court that the business owner and the LLC truly are separate.
Apply for an Employer Identification Number (EIN) with the federal government. An EIN is a nine-digit number that acts like your business’s Social Security number. A federal EIN can be used to open a bank account, hire employees, and pay taxes.
You get a Federal EIN by applying with the IRS. You can do this online or by mailing in a form. Note that if you file online with the IRS, you must complete the process in one sitting. The IRS cautions that you can’t save the form and go back later. Make sure you have all your business’s information ready when you file to save time.
You’ll also have to register to pay state taxes. The Tennessee Department of Revenue has an online system called the Tennessee Taxpayer Access Point (TNTAP) in which you can register for the following taxes:
Not all Tennessee taxes can be registered online, such as the automobile rental surcharge tax, tire fee, and used motor oil taxes. See the Tennessee Department of Revenue website for instructions on how to register for these taxes with paper applications.
Once you have an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and personal banking is crucial for sorting out your finances at tax time. It also helps ensure that you aren’t commingling funds. Mixing business and personal funds could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities. You might also want to think about getting a business credit card to start building a credit history.
The LLC business structure gives you flexibility, and that extends to how you can choose to have your LLC taxed. By default, LLCs are taxed like pass-through entities, letting them avoid “double taxation.” Under double taxation (which Tennessee corporations deal with), the business profits are taxed twice: once at the business level and again when the owners receive their share of the profits.
Some LLCs elect C corporation tax status because it offers them the widest range of tax deductions, which can prove advantageous. For example, employee insurance premiums could be written off as a deductible expense.
But other LLCs elect S corporation status, a tax status intended for small businesses. This status gives you pass-through taxation, but it has the distinct advantage of potentially reducing self-employment taxes (federal taxes for Social Security and Medicare). Learn more about S corporations with our guide to what an S corporation is.
We highly recommend consulting with a tax professional to learn which tax status is best for you. And if you ultimately decide to elect S corp status, our S corp service can help you do that.
There’s a very good chance that your Tennessee LLC will need at least one license or permit. But it’s not quite as simple as saying, “File this form with the Tennessee Secretary of State.” For this step, you’ll need to do a little bit of research.
For starters, some LLCs need to get federal licenses. For example, suppose you’re crafting a signature Malört liqueur. In that case, you’d need to get a license from the Alcohol and Tobacco Tax and Trade Bureau since you’d be manufacturing and selling alcohol. Meanwhile, businesses in aviation would need to get a license from the Federal Aviation Administration. If your LLC involves a heavily regulated activity, there’s a good chance you’ll need a federal license, but it’s your responsibility to research and know for sure.
Next, you’ll have to check state-level licenses. Tennessee does require a statewide general business license for most businesses, but you’ll need to get it and pay for it through your local county clerk. There are actually two variations of this license: the minimal activity license for businesses with $3,000 to $99,999 in gross receipts and the standard license for businesses with $100,000 or more in gross receipts. You will also need to get a sales tax permit if you’re going to make retail sales.
In addition to statewide licensing requirements, you’ll also need to get local licenses and permits. Remember, the county clerk oversees the state’s general business license, but there’s also the possibility that you’ll need additional licenses based on your location. For example, Memphis businesses need to get at least two licenses: one from the Shelby County clerk and another one from the city of Memphis. Please consult directly with your city and county authorities to learn your area’s requirements.
Another local licensing category could include zoning permits and occupancy permits for retail locations. Plus, if you’re working from your home, you may need to get a home occupation permit from your city or county, too.
Last but not least, you’ll need to research licenses related to your industry or profession. For example, if you’re in construction contracting, you’ll need a contractor’s license for projects that exceed $25,000. Meanwhile, barbers, home inspectors, cosmetologists, and other professionals all need to get a license (often administered by a regulatory board under the Tennessee Department of Commerce and Insurance. And the list could go on.
Long story short: you’ll need to do plenty of research to ensure you get all of the licenses that apply to your unique business — your unique industry, services, and business location.
Licenses and permits are of prime importance for a Tennessee PLLC. If you’re starting a professional LLC, then every person offering your company’s professional service needs to be licensed in that profession. It’s up to you to do the legwork to ensure that everyone has these licenses, so consult with the regulatory board that governs your profession to get these licenses, renew them, and check that they’re up-to-date.
When considering the formation of an LLC in Tennessee, it’s important to weigh the specific advantages and challenges this business structure presents.
Understanding these aspects is crucial for anyone looking to start an LLC in Tennessee, helping them align their business approach with their goals and risk tolerance.
If you’re thinking of forming an LLC in Tennessee, there are actually a couple of different types available, each suited to different business needs.
If you’re a solo dreamer in the Volunteer State, then a single-member LLC might be a perfect fit. With this structure, you take charge as the sole owner while also enjoying the liability shield that LLCs offer.
If you have one or more friends or family members excited to start a business with you, then a multi-member LLC could be a great way to team up with security. A multi-member LLC helps ensure each member’s input is valued while splitting profits, losses, and responsibilities according to the agreed terms. Adding and removing members, must adhere to the rules set in your operating agreement.
A professional limited liability company (PLLC) is made for licensed professionals such as doctors, engineers, and attorneys. It provides liability protection while meeting professional licensing requirements. PLLCs do not shield members from personal malpractice claims but protect against claims made against other members.
A series LLC is an LLC that is split into multiple compartments, each with its own protections against liabilities from the others. Not many states allow the formation of a series LLC, but Tennessee does. The rules and guidelines associated with forming a series LLC in TN stipulate different taxation and registration requirements that should be carefully considered.
When forming an LLC in Tennessee, you can expect to encounter several costs.
In Tennessee, LLCs are required to file an annual report to maintain compliance. This report keeps the state updated on essential information about your LLC, such as changes in address or management. The annual report filing always has a filing fee of at least $300, and it’s crucial for keeping your LLC in good standing with the state.
There’s also a good chance that your business will need specific licenses or permits. For starters, if you have more than $3,000 in gross sales during the year (but less than $100,000), you’ll need the state’s Minimum Activity License. Businesses with more than $100,000 in gross sales need the standard business license. It’s also quite common for business owners to need specific licenses for their industry.
Even after you get these licenses, your work isn’t quite finished; you’ll probably be required to renew these licenses on a regular basis. Failure to comply with these requirements can result in penalties or even administrative dissolution of your LLC.
We offer many services beyond just helping you form your LLC. Our business experts can also give you long-term business support to help run and grow your company.
Tennessee has many business opportunities, but if the paperwork of starting a business feels overwhelming, we can help. Let us take care of the Tennessee LLC formation process with our business formation service, compliance, and more. That way, you can get back to running your dream business, whether it’s a farmers’ market in Knoxville or a Moonpie stand in Memphis.
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Before starting the dissolution process, the members of an LLC should consult the operating agreement and follow all established rules for dissolving the company.
Transferring all or part of the ownership of an LLC can be a complex process because, unlike corporations, you can’t simply sell shares. First, consult any established rules for transferring ownership in your operating agreement. From there, you may want to consult an attorney for guidance.
Having a business plan in place isn’t a legal requirement. However, it’s a really good idea to have one. Business plans help entrepreneurs develop strategies to set up new companies for success. Without a business plan, it might be hard for you to persuade others to invest in or join your business.
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