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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Updated on March 17, 2023
If you’re thinking of starting a limited liability company (LLC) in Tennessee, you’ll want to know in advance how much it’s going to cost. LLC formation fees vary by state, so it’s wise to do a bit of research and prepare yourself, and your new business, for the necessary steps.
| Requirement | Cost/Fee |
|---|---|
| Articles of Organization | $50 per member with a minimum fee of $300 and a maximum fee of $3,000 |
| Certified Copy – Articles of Organization | $20 |
| Certificate of Existence | $20 |
| Name Reservation | $20 |
| Registered Agent Service | $50 – $300 |
| Operating Agreement | $0 – $2500 |
| Annual Report | $20 |
| Franchise and Excise Tax | The franchise tax rate is .25% of assets, and the excise tax rate is 6.5% of net earnings |
| Business Licenses and Renewals | varies – check with state and local government |
In Tennessee, you form an LLC by filing articles of organization, which requires a fee of $50 per member with a minimum fee of $300 and a maximum fee of $3,000. It’s a simple process you can do online at the Tennessee Secretary of State’s website. If you file online, your LLC should be approved and formed within two days.
If you need a certified copy of the articles of organization, there is a $20 fee. If you need a Certificate of Existence, there is a $20 fee. If you’d like the state to hold your LLC name before you register, you can apply here for $20 to reserve it for 120 days.
You’ll need to mail the form with the fee to:
Tennessee Secretary of State
ATTN: Corporate Filing
312 Rosa L. Parks Ave FL 6
Nashville TN 37243
In Tennessee, you are required to have a registered agent, also known as an agent of service in process. A registered agent is a person or business authorized to accept and respond to legal, tax, and financial documents on behalf of your business.
In Tennessee, you can be your own registered agent, or it can be another member of the LLC. An individual who is not a member or a professional agency can also serve as the registered agent for your LLC.
Costs for a registered agent service range from $50 a year up to $300 or more. Several online firms, such as ZenBusiness and Northwest Registered Agent, provide quality services at reasonable rates.
Starting an LLC requires obtaining the required licenses and permits from local, state, and federal governments. Fees for these vary, but most costs are minimal.
Federal regulations, licenses, and permits associated with starting your business include doing business as, health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific permits.
You may also need state-level and local county or city-based licenses. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments to learn more.
Business license fees depend on the type of business and the agency issuing the license or permit. On average, business licenses cost between $100 and $300+, plus renewal fees.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package ($149 + state fees). They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
In Tennessee, your LLC is not required to have an operating agreement in place. But it’s highly recommended, as an effective operating agreement can help avoid disputes and lawsuits that could threaten the stability of your LLC.
An LLC operating agreement is an important legal document that details who owns the business and provides essential information pertaining to member duties. An LLC operating agreement establishes the financial relationship between members and the basics of the working relationships between those members and the managers who oversee daily operations.
The operating agreement is not filed with the state, but instead remains private. It’s advisable to hire an attorney to ensure your operating agreement is thorough and legally binding.
Creating an operating agreement is free if you just draw it up yourself. Alternatively, you can pay around $100 for guidance from an online business advisory.
This is an extremely important document, so it’s recommended that you use the services of a specialist or legal firm. If you choose to hire an attorney to help you create this document, the price will be around $500 for a single-member LLC and $2,500 for a multi-member LLC.
Forming an LLC in Tennessee tends to involve a lot of red tape and paperwork, so for many entrepreneurs just starting out it’s a good idea to hire an experienced service provider.
Some of the best services for forming an LLC are ZenBusiness and Northwest Registered Agent. LLC Formation service will take care of all the key steps, keeping you updated while allowing you to focus on launching and growing your business.
The cost of professional services depends on your requirements and LLC formation plan. Most LLC service providers offer different plans/packages and there are many LLC services that offer free LLC formation.
Every state has a different fee structure and timelines for LLC documents and licenses. It’s important to stay up-to-date or your business could face significant penalties. The fees and timelines for Tennessee are detailed below.
You’ll need to file an LLC annual report with your state to keep your LLC in good standing. The fee is $20, and you can file online at the Secretary of State’s website.
A franchise tax is not a tax on a franchise business. It is a fee that the state imposes on registered business entities for the right to operate. Tennessee charges an annual franchise tax of a minimum of $100 and is based on the dollar value of the business’s assets.
Tennessee also charges an excise tax based on the net earnings of the LLC. The franchise tax rate is .25% of assets, and the excise tax rate is 6.5% of net earnings.
Some business licenses and permits must be renewed periodically, which may have a small associated fee. In Tennessee, there is no fee for a sales tax permit, and it does not need to be renewed.
Other business-specific licenses and permits, such as a food safety permit, must be renewed annually. Fees for specific licenses and permits vary. You’ll need to check with the offices that issue your required licenses and permits, at both the state and local levels, for renewal requirements and fees.
It’s best to set calendar reminders for all your license renewals so that you stay in compliance with the law.
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