To start a business in Tennessee, register your LLC or corporation with the Tennessee Secretary of State through TNCaB, the state’s online business filing system, then register with the Department of Revenue for franchise and excise tax, business tax and sales tax as they apply. As of October 2026, Articles of Organization cost $300 for an LLC with up to six members, and a for-profit corporation charter costs $100.
Tennessee has no income tax on wages, but it does tax businesses directly. LLCs and corporations pay franchise and excise tax, with a $100 minimum franchise tax, and most businesses grossing $100,000 or more also register for the state and city business tax.
Updated October 2026.
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Best Business Formation Services in Tennessee (2026)
Comparing services for forming a business in Tennessee? Start with this ranked shortlist; details for each pick follow the table.
| Rank | Provider | Best for | Price | What’s included |
|---|---|---|---|---|
| 1 | Mainstay Filing | Forming an LLC with the agent, EIN and annual report included | $199/year + state fee at cost | LLC formation filing, registered agent for the year, EIN application, annual report preparation and filing |
| 2 | TN Registered Agent.org | Tennessee registered agent service only | $99/year | $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
| 3 | Tennessee Registered Agent.co | Tennessee registered agent service only | $99/year | in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
1. Mainstay Filing
Mainstay Filing is our top pick in Tennessee. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.
2. TN Registered Agent.org
TN Registered Agent.org is a Tennessee registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
3. Tennessee Registered Agent.co
Tennessee Registered Agent.co is a Tennessee registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
Tennessee at a glance (October 2026)
| Item | Tennessee detail |
|---|---|
| Filing office | Tennessee Secretary of State, Division of Business and Charitable Organizations |
| Online filing | TNCaB (replaced TNBear) |
| LLC Articles of Organization (SS-4270) | $300 for up to 6 members; $50 per member above that, up to $3,000 |
| Corporation charter (SS-4417) | $100 |
| LLC annual report | $300 for up to 6 members (same per-member formula) |
| Corporation annual report | $20 |
| Annual report due | 1st day of the 4th month after fiscal year end (April 1 for calendar year) |
| Assumed name | $20, valid five years |
| Franchise and excise tax | 0.25% of net worth ($100 minimum) and 6.5% of net earnings |
| Sales tax | 7% state, plus local tax up to 2.75% |
Fees come from the Secretary of State’s forms and fees page. For a full budget, see Mainstay Filing’s Tennessee LLC cost guide.
Choosing a business structure in Tennessee
Tennessee’s business taxes make structure more than a liability question:
- Sole proprietorship. No Secretary of State filing and generally no franchise and excise tax. You may still owe business tax once gross receipts reach the threshold, and you carry personal liability.
- General partnership. Similar treatment to a sole proprietorship, with shared liability. General partnerships do not need a registered agent.
- LLC. Liability protection, but LLCs register with the Department of Revenue for franchise and excise tax and pay at least the $100 minimum franchise tax every year, according to the Department of Revenue. We cover the LLC filing step by step in our Tennessee LLC guide.
- Corporation. A $100 charter and a $20 annual report, but the same franchise and excise tax obligations as an LLC.
Interestingly, a corporation’s yearly Secretary of State cost ($20) is far lower than an LLC’s ($300), although most small businesses still pick the LLC for its flexibility.
Name your business
Tennessee LLC names must include “Limited Liability Company”, “LLC” or “L.L.C.”, and corporate names need “corporation”, “incorporated” or “company”, or an abbreviation. Banking and insurance names need approval from the relevant state department.
Check availability before filing:
- Search the TNCaB business entity search, or follow our Tennessee business name search guide.
- Check domains and social handles in one search on Namechk.
- Search the USPTO trademark database.
Our business name generator helps if you are stuck. A name reservation (SS-9425) costs $20 and lasts four months.
Assumed names
The Secretary of State says Tennessee does not recognize “DBAs” or fictitious names in the usual sense. Instead, LLCs and corporations register an assumed name (Form SS-4402) for $20. It lasts five years and can be renewed for $20, according to the Secretary of State’s FAQs. Sole proprietors and general partnerships do not file assumed names with the state; check with your county about local practice.
Appoint a registered agent
All Tennessee entities except general partnerships must keep a registered agent and registered office in the state at all times. The registered office must be a physical Tennessee street address, not a P.O. box, and the agent’s business office must match it. Changing your agent costs $20.
You can serve as your own agent if you have a Tennessee address and are available during business hours. Many owners prefer a commercial agent for privacy. Mainstay Filing includes a Tennessee registered agent for the first year in its formation package.
File your Articles of Organization in TNCaB
Create an account in TNCaB, which you will also need for annual reports, and file Articles of Organization (Form SS-4270, revised January 2025). You will provide:
- The LLC name and the number of members, which sets the fee.
- The registered agent and Tennessee registered office.
- The principal office and mailing address, plus an email address for reminders.
- Whether the LLC is member-managed or manager-managed, and its fiscal year end.
The fee is $300 for one to six members, plus $50 for each member above six, up to $3,000. Online card or e-check payments add a convenience fee. Tennessee has no publication requirement. The Secretary of State’s next steps guide lists what to do after approval, starting with an operating agreement for your records.
Get an EIN
Apply for a free Employer Identification Number from the IRS. You will need it for Department of Revenue registration, payroll and a business bank account.
Register with the Tennessee Department of Revenue
Tennessee business taxes are managed in TNTAP, the Department of Revenue’s online system.
Franchise and excise tax
LLCs, corporations, limited partnerships and business trusts registered in Tennessee or doing business here register for franchise and excise tax. The excise tax is 6.5% of Tennessee taxable income, and the franchise tax is 0.25% of Tennessee net worth, with a $100 minimum, according to the Department of Revenue. Returns are due the 15th day of the fourth month after year end (April 15 for calendar-year filers).
A 2024 law eliminated the property measure from the franchise tax for tax years ending on or after January 1, 2024, so the tax is now based on net worth only.
Business tax
If your business grosses $100,000 or more in a Tennessee county or city, you register for and pay the state and city business tax. Rates depend on your business classification.
Sales and use tax
Tennessee’s general state sales tax rate is 7%, food is taxed at 4%, and every local jurisdiction adds its own rate of up to 2.75%, according to the Department of Revenue. Register for sales tax in TNTAP before you start selling taxable goods or services.
Hiring in Tennessee
Tennessee has no state minimum wage law, so covered employers pay the federal minimum of $7.25 per hour, per the U.S. Department of Labor. Because Tennessee does not tax wages, there is no state income tax withholding. Employers still register with the Department of Labor and Workforce Development for unemployment insurance, report new hires, and carry workers’ compensation, which most employers with five or more employees, and construction businesses with even one, must have.
Licenses and permits
Tennessee does not issue a single statewide general business license. Instead:
- Business tax registration through the Department of Revenue and your county clerk or city covers the general licensing role for most businesses above the $100,000 threshold.
- Occupational licenses come from regulatory boards under the Department of Commerce and Insurance and the Department of Health.
- Local permits such as zoning, building and health permits apply in Nashville, Memphis, Knoxville, Chattanooga and other cities.
The Tennessee SBDC and the state’s TN SmartStart program offer free help with licenses and permits.
Banking and insurance
Open a business bank account with your filed Articles, EIN and operating agreement, and keep finances separate. Good records also make the franchise and excise return easier. Consider general liability, professional liability, commercial auto and property insurance, plus workers’ compensation as required.
Tennessee annual reports
Tennessee LLCs and corporations file an annual report through TNCaB on or before the first day of the fourth month after their fiscal year ends, which is April 1 for a December year end. LLCs pay $300 for up to six members, with $50 for each additional member up to $3,000, while corporations pay $20. Changing your registered agent on the report adds $20.
If you do not file, the Secretary of State can administratively dissolve the company. Reinstatement after administrative dissolution costs $70 plus the missed reports, and remember that the franchise and excise return is a separate filing with the Department of Revenue.
Building your Tennessee business website
Register a domain that matches your business name and set up a simple site. These builders are a good starting point:
FAQs
How much does it cost to start an LLC in Tennessee?
As of October 2026, filing Articles of Organization for a Tennessee LLC costs $300 for one to six members, plus $50 for each additional member up to a $3,000 maximum. Online payments add a convenience fee. Each year after that, the LLC files an annual report with the same member-based fee and pays at least the $100 minimum franchise tax.
What is the Tennessee franchise and excise tax?
Tennessee’s franchise tax is 0.25% of a business’s Tennessee net worth, with a $100 minimum, and the excise tax is 6.5% of Tennessee taxable income. LLCs, corporations, limited partnerships and business trusts registered or doing business in Tennessee must register and file, usually by April 15 for calendar-year businesses.
When is the Tennessee annual report due?
Tennessee annual reports are due on or before the first day of the fourth month after the close of the entity’s fiscal year, which is April 1 for a December year end. File through TNCaB, the Secretary of State’s online system. LLCs pay $300 for up to six members, and corporations pay $20.
Does Tennessee have a state income tax?
Tennessee does not tax wages, so employees pay no state income tax and employers do not withhold it. Businesses are taxed directly instead: LLCs and corporations pay the 6.5% excise tax on net earnings and the franchise tax on net worth, and many businesses also pay the state and city business tax on gross receipts.
How do I register a DBA in Tennessee?
Tennessee does not use the term DBA. LLCs and corporations register an assumed name with the Secretary of State using Form SS-4402 for $20. The registration lasts five years and can be renewed for $20. Sole proprietors and general partnerships do not file assumed names with the state, so check with your county.
What is the sales tax rate in Tennessee?
Tennessee’s general state sales tax rate is 7%, and food is taxed at a 4% state rate. Every local jurisdiction adds its own sales tax of up to 2.75%, so the combined general rate can be as high as 9.75%. Businesses register to collect sales tax through TNTAP, the Department of Revenue’s online system.
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