How to Form an LLC in Tennessee

By Bazal Razzaq

Chief Editor

Updated: September 20, 2023, 12:30pm

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LLC in Tennessee

Tennessee, the 16th state in the United States of America, has very easy norms and processes in case you plan to open up a Limited Liability Company (LLC) in the state. The state laws make it easier for you to open up your LLC and start the business with the respective members.

If you have been through various articles in the online space, then this piece will be your full-fledged guide for everything involving opening a Tennessee LLC. The task of putting an LLC together takes time and effort, but with a streamlined process shared in this piece, you will be able to create your LLC without worrying about any hassle that would come in the way of doing the task in one go. So, without further ado, let’s get down to it:

#1 Name your LLC in Tennessee

Choosing a name is important to start your business. Every name counts, and so if you have to pick a name for your LLC in Tennessee, you need to comply with the naming requirements in the state, and it is easily accessible to all in Andrew Jackson’s state.

While some options are similar for an LLC in Tennessee, as in other states, one can rest assured that following some basic guidelines will help their business get listed easily and effectively.

LLC in Tennessee Guidelines

Every LLC should comply with some guidelines or the formal laws of the state because, without it, the details will not be worth the time. You would want to work with a business that is registered in the state.

There are many things that one would require to form an LLC in Tennessee. If you plan to open up an LLC in the home state of Bianca Belair, you need to follow some basic guidelines to start the process.

  • LLC in Tennessee requires you to include the abbreviation Limited Liability Company, LLC or L.L.C., in the name to ensure that your business can be listed as an LLC in the state.

  • Your business shouldn’t have words that would confuse the users with a Federal agency, like The Federal Bureau of Investigation (FBI), State Department Business (SDB), or anything that would contradict your business’ establishment.

  • The LLC cannot have restricted words like Bank, Attorney, or anything that involves Medical Services. In accordance with the requirement, you would require additional documents for your LLC to validate that your business can run operations in the same regard.

LLC in Tennesse Name Guidelines

Every business requires specific names, and you would be required to share such names that don’t hinder your business’ value or its performance in the state. You can search for the name availability at this link.

If your business name is available, then you need to look into credentials for your Limited Liability Company (LLC). You would need to file Tennessee Articles of Organization offline or online and share some details that would match the requirements. Appended are the details that you would need to share along with your Tennessee Articles of Organization form:

  • Your LLC Name

  • The consent application (in case available)

  • Designation of additional people (in case available)

  • The name of your Registered Agent and their Official Address

  • Details of your fiscal year close month

  • The date of commencement

  • The type of Governing Authority

  • The number of people in the LLC

  • The duration since the commencement of business

  • Your official mailing address and registered office address

  • Designation of various members in your LLC

#2 Choose a Registered Agent for your LLC in Tennessee

The State of Tennessee requires you to choose a registered agent for your business who will be the Single Point Of Contact (SPOC) for your LLC. This agent will be able to receive any legal documents, tax forms, and every other information from the state, including your lawsuits and any government communication.

You can always nominate someone within your registered members as the registered agent for your LLC. This will ensure that you have all the necessary details in one place in one go and remain hassle-free in terms of losing any official correspondence.

Who can be a registered agent for your LLC in Tennessee?

There are some conditions on who can be a registered agent for an LLC in Tennessee. First and foremost, the person should be a resident of the state or have a business that is in line with the guidelines of the state.

If the aforementioned are met, then a user can be a registered agent for your LLC in Tennessee. As stated earlier, you can always choose someone from your team to be your registered agent.

#3 File an Articles Of Organization for your LLC in Tennessee

The next step to go ahead in the process is to file your Articles of Organization for your LLC in Tennessee. You need to fill out Form SS-4270: Articles of Organization with the Tennessee Secretary of State to ensure that your business is successfully registered as an LLC in Tennessee.

There are two ways to apply for the same, and the charges include $50 per member with a minimum of $300 and a maximum of $3,000. It is at this time when you can make a call if you want your business to be managed by members or by a manager.

In case of an offline submission, you would need to issue a cashier’s check or a non-refundable money order payable to the Tennessee Secretary of State. In case you want to send it via FedEx or USPS, you can send the same information to the appended address:

6th floor – Snodgrass Tower

Attn: Corporate Filing

312 Rosa L. Parks Ave.

Nashville, TN 37243

#4 Follow the Steps to a LLC in Tennessee Operating Agreement

The State of Tennessee doesn’t formally require an Operating Agreement, but creating it ensures that you are able to bifurcate responsibilities and avoid conflict in the long run for your business and beyond.

It helps you streamline information on what the role and responsibilities will be, how the company would function, and on which parameters. It lays down the foundation of all the details that are required for successful business management.

#5 Apply for a Tennessee Employer Identification Number for your LLC in Tennessee

Every business that operates in Tennessee must have an Employer Identification Number (EIN) for their respective LLC in Tennessee. A question may arise on what would be the benefits of applying for an EIN for their respective LLC in Tennessee. Appended are the benefits of applying for an Employer Identification Number (EIN) in the State of Tennessee:

  • Open a Bank Account: As an LLC business operating in Tennessee, you would need a business bank account, and your EIN can come in handy in this situation. You will get various benefits by producing the information to your bank.
  • Federal and State Taxes: A business needs to showcase credentials that justify the Federal and State Tax reforms and confirm that the LLC in Tennessee is law-abiding, as well as financially tax-abiding. So, the EIN will come in value at this time.

  • Hire Employees: Every business, whether it be an LLC in Tennessee or any other business, needs employees to run its day-to-day operations. EIN will help them represent themselves as a business of value to those new employees and aspirants who want to join the organization.

How Does One Get An EIN Number For Their LLC In Tennessee?

The Employer Identification Number (EIN) can be obtained free of charge from the IRS office. The business owner can apply for it after forming the organization. Whether you want to do it online or offline, the IRS offers the possibility of using both choices as per your requirements. Also, if you are an international applicant, you don’t need a Social Security Number (SSN) to get an EIN. You can share the details via your preferred courier partner to the appended address to get your EIN number:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

#6 File The Annual Report for your LLC in Tennessee

The fiscal year for the State of Tennessee starts on July 1st every year and ends on June 30th the following year. You are required to file the annual report online by the first day of the fourth month following your LLC’s fiscal year. The charges for the same are $50 per member, which can be a minimum of $300 and a maximum of $3,000.

The state can revoke your LLC’s standing after a timeframe of 60 days from the date of failing to file an annual report. In case you miss the deadline for filing your annual report in Tennessee, the state doesn’t charge you a late fee for the same.

#7 Comply with the Laws Of The State Of Tennessee to Operate your LLC

You are required to comply with the federal, state, and local norms of the state to continue running your LLC in the State of Tennessee. The fees and other charges would vary based on the kind of LLC you wish to operate in the state.

The state has different tax slabs for respective businesses,’ and you would want to check on the taxes implied on your LLC in Tennessee. The details mentioned below share the respective information:

Sales Tax

If you have an LLC that would be selling things in the State of Tennessee, then you would need to apply/register for a seller’s permit from the website of the Tennessee Department of Revenue.

The maximum local sales tax rate of 2.75% is added to the 7% sales tax rate of the state. These taxes can and will include charges implied by different counties and cities, along with the other charges that are required to operate an LLC.

Employer Tax

In case you have employees who are working in the State of Tennessee, then you would need to register your business under the Unemployment Insurance Tax by visiting the State of Tennessee’s Workforce website.

Franchise & Excise Tax

If you run an LLC in Tennessee, then you are required to pay the Franchise & Excise Tax. This tax needs to be paid to the Department of Revenue online. These are due as per the LLC’s tax year and need to be paid on the 15th of the fourth month as per the business’ tax year.

The charges vary for the business, with the franchisee tax being 0.25% of the LLC’s net worth or book value, including any property owned by the business in the state. The minimum franchise tax is $100, while the Excise Tax is 6.5% and varies based on the LLC’s net earnings in the fiscal year.

Income Tax

The State of Tennessee has no specific Income Tax. While there are no income tax charges by the state, there are still different federal income tax reports that you need to file, which include Form 1065, in case you are a multi-member LLC, and Form 1040, Schedule C, in case yours is a single member LLC.

Frequently Asked Questions​

The minimum wage is $7.25 per hour for anyone who is employed in the State of Tennessee.

According to the law of the State of Tennessee, employees are required to be paid bi-weekly.

Kindly fill out the IRS Form SS-4 and leave the section 7B unfilled. Post-completion of this procedure, call IRS at (267) 941-1099 to complete the entire application process.

If you run an LLC that has more than one member in it, then you are required to get an EIN for your LLC.

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