Tennessee LLC Cost: Filing Fee, Annual Fees and 5-Year Total
Forming an LLC in Tennessee costs $300 in state filing fees and then $400 a year to keep it active ($300 in filing fees plus a $100 state tax). Tennessee's estimated five-year state costs of $2,000 are 497% above the 51-jurisdiction median of $335.
Checked against official state sources (October 2026) · Last verified: October 29, 2026 · Sources
What an LLC costs in Tennessee
| Item | Amount | Notes |
|---|---|---|
| Formation filing fee | $300 | One time |
| Recurring state filing / report fee | $300/yr | Annual report: $50 per member, $300 minimum, $3,000 maximum |
| State tax / mandatory annual charge | $100/yr | Minimum franchise tax (Department of Revenue). Owed every year, starting with the formation year (conditions below). |
| Year-one cost | $400 | Formation fee + any year-one extra + the first year's state tax |
| Estimated 5-year state costs | $2,000 | Formation + year-one extras + 4 years of filing / report fees + 5 years of the state tax; ranks 47th cheapest of 51 |
The five-year figure counts state government fees and, where one applies, the separate mandatory annual state tax shown above. It assumes a single-member LLC owned by an individual with little or no income. It excludes registered agent services, formation-service fees, publication costs, local business licenses, income-based state taxes (income, gross-receipts, B&O, sales) and any optional extras. How we calculate it.
State tax you owe on top of the filing fees
Tennessee charges a separate $100 a year state tax or charge on top of the filing-office fees: Minimum franchise tax (Department of Revenue). Owed every year by an LLC registered with the Secretary of State or doing business in Tennessee, even if it is inactive. It is 0.25% of net worth with a $100 minimum, so a small LLC pays $100. Tennessee also charges an excise tax of 6.5% of net earnings, which is $0 with no income. A single-member LLC is not ignored for this tax unless its member is a corporation. We count it in the year-one, annual and five-year totals above and in the rankings.
Verified details
- Articles of Organization: $50 per member, with a $300 minimum and $3,000 maximum.
- Annual report: $50 per member (also $300 minimum, $3,000 maximum), due by the first day of the fourth month after the fiscal year ends. A registered agent or office change adds $20. The $300 shown on this site is the minimum, so LLCs with more than six members pay more.
- Minimum franchise tax: $100 a year, payable by any LLC registered with the Secretary of State to do business in Tennessee, whether active or inactive. The franchise tax rate is 0.25% of net worth.
- A single-member LLC is treated as its own taxpayer for franchise and excise tax unless its sole member is a corporation, and files Form FAE170. The excise tax (6.5% of net earnings) is $0 for an LLC with no net earnings.
- This is separate from the Secretary of State annual report fee ($50 per member, $300 minimum), which is already counted as the recurring filing fee.
Annual reports and upkeep
Tennessee filing cadence: Annual (first day of the 4th month after fiscal year end). Annual report: $50 per member, $300 minimum, $3,000 maximum. Missing filings can lead to late fees and, eventually, administrative dissolution, so put the dates in a calendar. See annual reports and franchise taxes explained.
How to form an LLC in Tennessee
- Check the name. Search the Tennessee business records on the Secretary of State / filing office site to confirm your LLC name is available and includes an LLC designator.
- Pick a registered agent. Every state requires a registered agent with a physical street address in the state. You can serve as your own agent if you live in Tennessee and are reachable during business hours, or hire a commercial agent. Registered agent guide.
- File the formation document. The state filing fee is $300. Use the state's online filing portal where available; paper filing is slower.
- Write an operating agreement. Most states do not require you to file one, but banks and partners typically ask for it, and it sets ownership and decision rules. Operating agreement basics.
- Get an EIN. The IRS issues EINs for free through its online application. Beware of sites that charge for it.
- Open a business bank account and calendar the deadlines. Put the annual (first day of the 4th month after fiscal year end) filing dates in a calendar so the LLC stays in good standing.
Want someone else to handle the filing in Tennessee?
A formation service files the paperwork for a fee on top of the state fee and often includes a first year of registered agent service. It saves time, but you can file directly with the state for the state fee alone. Compare DIY and services.
See a formation service (partner link) Sponsored
Living or operating outside Tennessee?
You can form an LLC in Tennessee even if you live elsewhere, but if you actually do business in your home state you will usually also have to register the LLC there as a foreign LLC and pay that state's fees, so you may pay twice. In Texas, for example, an out-of-state LLC transacting business pays $750 to register. See forming an LLC in a state other than your own.
Compare Tennessee with similar-cost states
| State | Formation | Annual | 5-yr total |
|---|---|---|---|
| Delaware | $110 | $400 | $2,110 |
| Nevada | $425 | $350 | $1,825 |
| Rhode Island | $150 | $450 | $2,350 |
| Massachusetts | $500 | $500 | $2,500 |
Head-to-head: Tennessee vs California · Tennessee vs Texas · Tennessee vs Florida · Tennessee vs New York · Tennessee vs Delaware · Tennessee vs Wyoming · Tennessee vs Nevada · Tennessee vs New Mexico
Frequently asked questions
How much does it cost to start an LLC in Tennessee?
The state filing fee is $300. Add a registered agent if you do not serve as your own, plus any local licenses.
What is the annual cost of an LLC in Tennessee?
Annual report: $50 per member, $300 minimum, $3,000 maximum. Tennessee also charges a $100 annual state tax (Minimum franchise tax (Department of Revenue)). That is about $400 per year in state costs in total.
Do I need a registered agent in Tennessee?
Yes. Tennessee requires every LLC to maintain a registered agent with a physical address in the state. You may act as your own agent if you meet the state's requirements.
Do I need an operating agreement in Tennessee?
Most states do not make you file one, but you should have one. Check Tennessee's LLC statute and ask your bank what it requires. We do not give legal advice.
Is Tennessee cheap compared with other states?
Tennessee's estimated five-year state costs of $2,000 are 497% above the 51-jurisdiction median of $335.
Sources
- Tennessee official filing site: sos.tn.gov
- TN SOS: LLC articles of organization form (PDF)
- TN SOS: annual report instructions
- Tenn. Code 48-247-103
- TN Dept. of Revenue: franchise and excise tax
- TN Dept. of Revenue: Franchise and Excise Tax Manual (June 2026)
- Tenn. Code 67-4-2119 (minimum franchise tax)
- TN Dept. of Revenue: Notice 13-16, single member LLCs
Fees change. Confirm the amount on the state's official page before you file.
Fee data: official state government pages and statutes (checked October 28–29, 2026); sources are linked on each state page. See our methodology. Not legal or tax advice.