Form your company in Tennessee

Why form an LLC in Tennessee?

Form in Tennessee only if you live or operate there. Despite no wage income tax, its LLCs face a $300+ formation fee, a $300+ annual report, and franchise & excise taxes — a poor fit for a remote or non-US founder.

A quick reminder from us: forming in a state where you do not actually operate usually means you still have to register (foreign-qualify) in your home state, often with little or no tax benefit. If you are unsure, tell us how you plan to operate and we will recommend the right fit — free.

Costs and fees

The Tennessee Secretary of State charges roughly $300 to file Articles of Organization, with an ongoing state cost of about $300 report (min). No wage income tax, but LLCs pay franchise tax (0.25% of net worth, $100 min) plus excise tax (6.5% of net earnings); $300 minimum to form and a $300 minimum annual report. State fees are paid directly to the state and are separate from our service fee.

• Filing fee: $300 (approximate)
• Ongoing state cost: $300 report (min)
• Typical processing time: 1–2 days

Taxes and privacy

Personal state income tax in Tennessee: None (on wages). Owner privacy on the public record is generally rated medium.

Your federal tax obligations (and your EIN) are the same regardless of the state you choose — a single-member LLC is taxed as a pass-through by default, and we can obtain your EIN even if you do not have an SSN.

Pros of forming in Tennessee

• No personal income tax on wages (the Hall tax on investment income was fully repealed in 2021)
• No state tax on individual salary income
• Straightforward online filing, typically ~1–2 business days

Things to weigh

• Filing fee is $50 per member with a $300 minimum — most single/small LLCs pay $300, among the highest formation fees in the US
• The annual report repeats the same $50/member, $300-minimum structure every year — a heavy recurring cost
• LLCs owe franchise tax (0.25% of net worth, $100 minimum) AND excise tax (6.5% of net earnings), so business income is effectively taxed
• Not a tax haven for an operating LLC, despite the 'no income tax' reputation

Banking for your Tennessee LLC

A US bank account isn't limited by forming in Tennessee — the usual fintechs (Mercury, Wise, Relay) and national banks serve TN LLCs. No state-specific banking rules apply.

Whichever state you choose, we prepare the documents banks ask for and can obtain your EIN even without an SSN. Bank and provider approval is always their decision — we are not affiliated with any bank.

Is Tennessee right for you?

Best for: TN residents / TN operations. If you operate physically in Tennessee, forming here keeps things simple. If you are a remote or non-US founder without a specific reason to choose Tennessee, a low-cost, privacy-friendly state like Wyoming or New Mexico is often the better default.

Not sure? Start your application and we will confirm the best state for your situation before anything is filed.