Does Tennessee have a state income tax?

No, Tennessee does not have a personal income tax. There is a business tax of 6.5%.

Do I need an EIN to start a business in Tennessee?

Yes, most businesses need an EIN (Employer Identification Number). It's free from the IRS — apply online at IRS.gov and receive it immediately.

How to Start a Business in Tennessee

Q: How long does it take to form a business in Tennessee?

Tennessee typically processes business filings in 3-5 business days. Online filing is available through the Secretary of State.

Everything you need to form an LLC or Corporation in Tennessee — filing fees, tax rates, and step-by-step instructions.

$300

LLC Filing Fee

$100

Corp Filing Fee

Income Tax

3-5

Days to File

Steps to Start a Business in Tennessee

Choose Your Business Structure

Decide between LLC, Corporation, S-Corp, Sole Proprietorship, or Partnership. LLCs are the most popular choice in Tennessee for their simplicity and liability protection.

Choose a Business Name

Your business name must be unique in Tennessee. Search the Secretary of State database to check availability. For LLCs, the name must include 'LLC' or 'Limited Liability Company.'

Appoint a Registered Agent

Every Tennessee business needs a registered agent — a person or service with a physical address in Tennessee who receives legal documents on your behalf.

File with the Secretary of State

File your Articles of Organization (LLC) or Articles of Incorporation (Corp) with the Tennessee Secretary of State. Filing fee: $300 for LLC, $100 for Corp.

Get Your EIN

Apply for a free Employer Identification Number (EIN) from the IRS. Takes minutes online at IRS.gov. You'll need this for taxes, banking, and hiring.

Open a Business Bank Account

Separate your business and personal finances. You'll need your EIN, formation documents, and operating agreement. Holdings makes this easy with integrated banking.

Business Entity Types in Tennessee

LLC

Corporation

Corporation (C-Corp)

Businesses planning to raise venture capital, go public, or have complex ownership structures.

Tennessee filing fee: $100

S-Corp

S Corporation

Small businesses wanting to reduce self-employment tax while keeping pass-through taxation. Must meet IRS eligibility (≤100 shareholders, US citizens/residents only).

Sole Proprietorship

Solo freelancers and contractors. No state filing required but offers no liability protection.

Partnership

General Partnership

Two or more people starting a business together. Consider an LLC instead for liability protection.

Nonprofit

Nonprofit Corporation

Organizations with charitable, educational, or religious missions seeking 501(c)(3) tax-exempt status.

Getting an EIN in Tennessee

An Employer Identification Number (EIN) is a 9-digit number assigned by the IRS to identify your business for tax purposes.

Free

IRS Filing Cost

Instant

Online Application

9 Digits

EIN Format

Apply for EIN at IRS.gov →

Tennessee Business Taxes

Corporate Tax Rate	6.5%
Personal Income Tax	0% — No personal income tax
Annual Report Fee	$300

Official Tennessee Resources

🏛️

Secretary of State

File your business formation documents

📋

IRS EIN Application

Get your free EIN online instantly

Frequently Asked Questions

How much does it cost to start an LLC in Tennessee?

Filing an LLC in Tennessee costs $300 with the Secretary of State. You'll also pay $300 annually for the annual report. Add $50–$300/year if you hire a registered agent service.

How long does it take to form a business in Tennessee?

Tennessee typically processes filings in 3-5 business days. Online filing is available and generally faster.

Do I need a registered agent in Tennessee?

Yes. Every business entity in Tennessee must have a registered agent — a person or service with a physical address in Tennessee who can receive legal and tax documents on your behalf. You can serve as your own registered agent if you have a Tennessee address.

Should I form an LLC or Corporation in Tennessee?

For most small businesses, an LLC is the better choice — simpler management, flexible taxation, and personal liability protection. Choose a Corporation if you plan to raise venture capital or go public. In Tennessee, an LLC costs $300 to file vs $100 for a Corporation.

Start a Business in Other States

Alabama LLC: $200 Alaska LLC: $250 Arizona LLC: $50 Arkansas LLC: $45 California LLC: $70 Colorado LLC: $50

View all 51 states →

Related Resources

NAICSFind Your NAICS Code for Registration GlossaryWhat Is an EIN? (Employer ID Number)GlossaryWhat Is a DBA?FeesCompare Business Bank Accounts

Starting a business in Tennessee?

Holdings gives you a business bank account, EIN assistance, and bookkeeping — all in one platform.

Get Started with Holdings →