Start Your Tennessee LLC in 3 Business Days

How to Form an LLC: Step-by-Step

1. 1

   Choose a Unique LLC Name

   Your Tennessee LLC name must be unique and include 'LLC' or 'Limited Liability Company'. Check name availability using the Tennessee Secretary of State's business search tool. The name cannot be misleading about your business activities or suggest government affiliation.

   Pro tip: Consider reserving your chosen name for 120 days ($20 fee) if you're not ready to file immediately.
2. 2

   Appoint a Registered Agent

   Tennessee law requires every LLC to have a registered agent with a Tennessee street address (not a P.O. box) to receive legal documents. You can serve as your own registered agent or hire a professional service. The agent must be available during business hours.

   Pro tip: Professional registered agent services provide privacy and ensure you never miss important legal notices, especially useful for out-of-state owners.
3. 3

   File Articles of Organization

   Submit your Articles of Organization to the Tennessee Secretary of State online or by mail with the $300 filing fee. Include your LLC name, registered agent information, organizer details, and management structure. Processing typically takes 3 business days for online filings.

   Pro tip: File online at sos.tn.gov for faster processing and immediate confirmation of your submission.
4. 4

   Create an Operating Agreement

   While not required by Tennessee law, an operating agreement is crucial for multi-member LLCs and recommended for single-member LLCs. This document outlines ownership percentages, management structure, profit distribution, and procedures for major decisions. It helps protect your personal liability protection.

   Pro tip: Even single-member LLCs benefit from an operating agreement as it demonstrates the separation between personal and business activities.
5. 5

   Obtain an Employer Identification Number (EIN)

   Apply for an EIN from the IRS online, by phone, or by mail. This free federal tax ID number is required if your LLC has employees or multiple members, and is needed to open business bank accounts. Single-member LLCs can use the owner's SSN but an EIN is still recommended.

   Pro tip: Apply for your EIN online at irs.gov for immediate approval during business hours.
6. 6

   Open a Business Bank Account

   Separate your personal and business finances by opening a dedicated business bank account. You'll need your Articles of Organization, EIN documentation, and operating agreement. Tennessee has no additional banking requirements beyond standard federal banking regulations.

   Pro tip: Shop around for business banking packages - many Tennessee banks offer perks for new LLCs like waived fees for the first year.
7. 7

   Obtain Business Licenses and Permits

   Research federal, state, and local licensing requirements for your specific business type. Tennessee requires various professional licenses for regulated industries like healthcare, real estate, and construction. Contact your city or county clerk for local business licenses and permits.

   Pro tip: The Tennessee Department of Commerce and Insurance website provides industry-specific licensing information and application portals.