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Starting a Business in Tennessee: LLC vs Corporation – Your Complete Guide

By Frank Tumminello | August 12, 2025

Tennessee offers no state income tax, business-friendly environment, and strategic Southeast location. The Volunteer State attracts businesses with competitive costs and growing economy.

At FileForms, we simplify business formation and ongoing compliance with automated filing services and expert guidance. Below, we’ll break down everything you need to know to make the right choice for your Tennessee business.

Why Tennessee for Your Business?

Tennessee provides no state income tax, competitive business costs, and strategic location for Southeast markets. The state offers business-friendly policies and growing economic opportunities.

LLC Formation in Tennessee

Key Requirements:

  • Articles of Organization filed with Tennessee Secretary of State
  • Filing Fee: $300
  • Registered Agent: Required with Tennessee physical address
  • Annual Report: Due by first day of fourth month after formation, then annually
  • No Publication Requirement: Tennessee doesn’t require newspaper publication

Benefits of Tennessee LLC:

  • No state income tax
  • Business-friendly environment
  • Competitive costs
  • Strategic Southeast location

Ongoing Compliance:

  • Annual Report: Due annually with $300 fee
  • Maintain registered agent service
  • Keep operating agreement current

Corporation Formation in Tennessee

Key Requirements:

  • Charter filed with Tennessee Secretary of State
  • Filing Fee: $100
  • Registered Agent: Required with Tennessee physical address
  • Annual Report: Due by first day of fourth month after formation, then annually
  • Corporate Bylaws: Must be adopted

Benefits of Tennessee Corporation:

  • No state income tax
  • Enhanced business credibility
  • Competitive operating costs
  • Strategic location advantages

Ongoing Compliance:

  • Annual Report: Due annually with $20 fee
  • Maintain corporate records
  • Hold required board meetings

Cost Comparison: LLC vs Corporation in Tennessee

Requirement LLC Corporation
State Filing Fee $300 $100
Registered Agent (Annual) $100-$300 $100-$300
Annual Report Fee $300 $20
State Income Tax None None

How FileForms Streamlines Tennessee Business Formation

FileForms makes Tennessee business formation seamless with:

  • Automated Filing: Complete all Tennessee Secretary of State requirements
  • Registered Agent Services: Professional Tennessee address across all counties
  • Fourth Month Deadline Management: Specialized tracking for Tennessee’s unique timing
  • No Income Tax Benefits: Maximize Tennessee’s tax advantages
  • Southeast Market Access: Strategic positioning for regional opportunities

Making Your Decision

Choose an LLC if you want:

  • No state income tax obligations
  • Flexible management structure
  • Strategic Southeast location
  • Business-friendly environment

Choose a Corporation if you plan to:

  • Minimize annual report costs
  • Build enhanced credibility
  • Access competitive operating environment
  • Pursue long-term growth strategies

Take Action Today

Ready to start your Tennessee business? Don’t navigate the Volunteer State’s requirements alone.

✅ Create a FileForms account today

✅ Get expert guidance on LLC vs Corporation choice

✅ Handle all filing requirements seamlessly

👉 Book a demo today to see how FileForms makes Tennessee business formation fast, easy, and compliant from day one.

Frank Tumminello

CEO, Fileforms