United States

Company Formation in Tennessee

State of Tennessee — Secretary of State (Division of Business Services)

Formation Time

2–4 business days

Min. Capital

No minimum

Corporate Tax

6.5% excise tax (plus 0.25% franchise tax on net worth/property)

Foreign Ownership

100%

Overview

Tennessee is one of the fastest-growing commercial and logistical hubs in the United States, celebrated for 0% personal income tax, low cost of doing business, and strong economic growth. Nashville is the healthcare management capital of the United States (headquarters of HCA Healthcare and dozens of hospital operators managing over 50% of private US hospital beds), as well as a booming entertainment and venture capital destination. Memphis anchors global logistics as the world headquarters of FedEx and the busiest air cargo airport in North America. Tennessee levies 0% personal income tax on wages, dividends, and interest, making it an exceptionally attractive destination for executives, founders, and remote entrepreneurs seeking a tax-friendly US base.

0% personal income tax

Nashville healthcare capital

Memphis FedEx logistics hub

Ford BlueOval City auto corridor

No tax on dividends

Why Choose Tennessee

0% state personal income tax (Hall Income Tax completely phased out)

Nashville is the healthcare industry capital of the US (HCA Healthcare, Vanderbilt)

Memphis is the air logistics capital of North America (FedEx world hub)

Major automotive manufacturing corridor (Nissan, Volkswagen, General Motors, Ford BlueOval City)

Rapid corporate in-migration and population growth in Nashville, Knoxville, and Chattanooga

Business-friendly regulatory environment with robust commercial courts

Series LLC available by statute for real estate and asset protection

Remote US business banking setup with national and regional banks

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
LLC	100%	N/A (member or manager managed)	None	Pass-through taxation for federal; subject to Tennessee Franchise & Excise Tax unless exempt	Healthcare services, logistics, music/entertainment, e-commerce, real estate
Corporation	100%	1	None	21% federal CIT; 6.5% Tennessee excise tax + 0.25% franchise tax	Healthcare networks, automotive supply chain, manufacturing, logistics

Step-by-Step Formation Process

Entity Name Verification

1 day

Search Tennessee Secretary of State corporate registry.

Filing Articles of Organization

2–4 business days

Submit formation documents electronically ($300 minimum state fee).

Federal EIN Issuance

3–10 business days

Obtain Employer Identification Number from IRS.

FinCEN BOI Filing & Operating Agreement

1–2 days

Submit federal beneficial ownership report and execute company governance documents.

Corporate US Bank Opening

3–5 days

Establish corporate accounts with digital or commercial US banks.

Costs & Fees

Government / License Fee	USD 300+
Our Service Fee	USD 850 – 2,200
Annual Renewal	USD 300+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Tennessee has an active commercial banking sector, anchored by regional leaders (First Horizon Bank) and major national financial networks.

Account Opening Time

3–7 business days

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

First Horizon Bank (Memphis HQ)Pinnacle Financial Partners (Nashville HQ)MercuryRelayJPMorgan Chase

Tax Overview

Corporate Tax

6.5% Tennessee excise tax + 0.25% franchise tax (on net worth/property); 21% federal CIT

Personal Income Tax

0% state personal income tax

VAT / Sales Tax

7.0% state sales tax (up to 9.75% combined local)

Capital Gains Tax

0% state capital gains tax

Withholding Tax

30% federal statutory (reduced by treaties)

Double Tax Treaties

68 countries

Tennessee levies an Excise Tax of 6.5% on net earnings from business conducted in Tennessee, and a Franchise Tax of 0.25% on net worth. Tennessee LLC filing fee is $50 per member, with a minimum fee of $300 and a maximum fee of $3,000.

Frequently Asked Questions

How is the Tennessee LLC formation fee calculated?

Tennessee calculates LLC filing fees based on the number of members: $50 per member, with a statutory minimum fee of $300 (covering 1 to 6 members) and a maximum fee of $3,000. The annual report fee is calculated using the exact same formula.

Does Tennessee have a personal income tax?

No. Tennessee levies 0% personal income tax on wages and salaries. The historic Hall Income Tax on dividends and interest was completely phased out in 2021, leaving Tennessee with zero personal income tax of any kind.

Why is Nashville considered the healthcare capital of the US?

Nashville's healthcare industry encompasses more than 500 healthcare companies generating over $95 billion in annual revenue globally. Major hospital management operators (including HCA Healthcare and Community Health Systems) manage over half of all private hospital beds in America from Nashville.

Can foreign non-residents form a Tennessee LLC remotely?

Yes. Foreign nationals can form and own 100% of a Tennessee company without US residency. Incorp International provides the statutory registered agent and coordinates remote US corporate bank opening.

What is the Tennessee Franchise and Excise Tax?

Tennessee imposes two entity-level business taxes: an Excise Tax of 6.5% on net corporate earnings from Tennessee operations, and a Franchise Tax of 0.25% ($2.50 per $1,000) on the entity's net worth or real and tangible property owned in Tennessee.

Can I open a US bank account for a Tennessee LLC without traveling to the US?

Yes. Incorp International facilitates remote corporate bank account opening through our partner digital banking networks (Mercury, Relay) and US commercial banks.