How much does it cost to start an LLC in Tennessee in 2026?

Forming an LLC in Tennessee requires a one-time initial filing fee of $300 paid to the Tennessee Secretary of State. When accounting for standard registered agent compliance ($39-$125/yr), expect initial Year 1 costs to be approximately $339.

What are the annual recurring fees for a Tennessee LLC?

Tennessee charges an annual report fee of $300 filed on a annual basis (due First day of 4th month after fiscal year end (April 1)). Additionally, Tennessee imposes a franchise tax: Franchise & Excise (F&E) tax: $100 minimum franchise tax (0.25% of net worth) + 6.5% excise tax on Tennessee net earnings. Recent legislation eliminated the property measure.

What is the true 5-year cost of maintaining a Tennessee LLC?

Over 5 years, the true cost of a Tennessee LLC is approximately $2,195. This includes initial formation ($300), recurring annual reports ($300), statutory franchise taxes, and compliance support.

Can I form an out-of-state LLC (e.g. Wyoming or Delaware) if I live in Tennessee?

While you can legally form an entity in Delaware or Wyoming, if your principal place of business, employees, or operations are located in Tennessee, you must register as a Foreign LLC in Tennessee. In Tennessee, the foreign qualification filing fee is $300 plus ongoing maintenance of $300/year, often resulting in double fees.

Verified 2026 Statutory Guide

Tennessee LLC Cost Calculator & 5-Year Taxes

Initial state filing fee: $300. Ongoing annual report fee: $300 (annual). Franchise tax: $100/yr minimum.

Compare Tennessee vs Others

Direct Answer • 2026 Official Fee Schedule

Starting an LLC in Tennessee costs $300 for the one-time Articles of Organization filing fee, plus $300/yr in recurring annual report fees. Over 5 years, maintaining a Tennessee LLC costs an estimated $2,195, including mandatory annual franchise taxes.

Initial State Filing$300One-time payment

Annual Report$300Due First day of 4th month after fiscal year end (April 1)

Franchise Tax$100/yrminimum

Registered Agent$39–$125Annual service

Statutory Department: Tennessee Secretary of State

Verify on State Website (.gov)

Tennessee LLC 5-Year Cost Model

Adjust parameters below to model state filing fees, recurring franchise taxes, and compliance overhead.

Popular:

1. State of LLC FormationInitial: $300

Approval speed: Instant online via TNSOS•Public Privacy: Standard

2. Where do you conduct business?

If you reside or hire employees in a different state from your LLC, that state requires Foreign Qualification registration.

3. Estimated Annual Gross Revenue$150,000

Tennessee Tax Rule: Franchise & Excise (F&E) tax: $100 minimum franchise tax (0.25% of net worth) + 6.5% excise tax on Tennessee net earnings. Recent legislation eliminated the property measure.

4. Registered Agent ServiceMandatory by law

5. Expedited State Processing

Standard Processing (Included)

Tennessee already processes online filings within 1-3 business days.

Deciding where to incorporate?

Compare Tennessee vs Wyoming & Delaware →

Year 1 Setup Cost

$439

Initial formation fee ($300) + registered agent

Annual Maintenance

$439 /yr avg

Annual report ($300/yr) + franchise tax

5-Year True CostAll Hidden Fees Included

$2,195(~$37/mo)

Total 5-year statutory commitment to maintain legal compliance in Tennessee.

5-Year Cost Trajectory & Fee Composition(Click any year to inspect)

Notice how initial filing fees are often dwarfed by recurring franchise taxes and maintenance.

Inspecting: Year 1 ($439)

$439

Year 1Formation

$439

Year 2Renewal

$439

Year 3Renewal

$439

Year 4Renewal

$439

Year 5Renewal

State Formation & Expedited

Franchise & Entity Taxes

Annual / Biennial Reports

Special Mandates (Publication, etc.)

Registered Agent Compliance

Home State Foreign Qualification

Year 1 Itemized Line Items

Total: $439

State Filing$300

Franchise Tax$100

Annual Report$0

Special / Pub$0

Registered Agent$39

Foreign Qual.$0

5-Year Budget Allocation by Cost Category

Total State Filings

$300

14% of 5-yr budget

Total Franchise Taxes

$500

23% of 5-yr budget

Annual / Biennial Reports

$1,200

55% of 5-yr budget

Registered Agent Service

$195

9% of 5-yr budget

Publication / Mandates

0% of 5-yr budget

Founder Cost-Reduction Tip

Save on your Tennessee filing fees & protect your personal privacy

Pro Tip: Filing directly through the state exposes your personal home address on public government records forever. You can keep your private details off the public registry and save time by using a top-rated Registered Agent service starting at $39 + state fees.

Free Home Address RedactionInstant Tennessee Compliance AlertsAnnual Report Reminders

Get Started for $39 + State FeesRated 4.8/5 by 10,000+ founders • No hidden renewal spikes

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Open a zero-fee business checking account for your Tennessee LLC

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Tennessee LLC Statutory Framework & Compliance Guide (2026)

Statutory requirements and fee schedules under the Tennessee Secretary of State.

Official State Portal (.gov)

Annual Report Due DateFirst day of 4th month after fiscal year end (April 1)Frequency: ANNUAL

Normal TurnaroundInstant online via TNSOSExpedited: Fast / Included

Public Record PrivacyStandardRegistered agent protects personal address

State Personal Income Tax0% (No state personal earned income tax)LLC pass-through profits flow to owners

Tennessee Franchise Tax & Business Privilege Tax Rules

Franchise & Excise (F&E) tax: $100 minimum franchise tax (0.25% of net worth) + 6.5% excise tax on Tennessee net earnings. Recent legislation eliminated the property measure.

Advantages of a Tennessee LLC

0% personal state income tax
Thriving Nashville economy

Drawbacks & Hidden Costs

Filing fee based on members: $50/member, min $300, max $3,000 initial AND annual!
Franchise & Excise tax applies to LLCs

Founder Pro-Tip for Tennessee

Tennessee is one of the most expensive states for multi-member LLCs because filing fees scale with member count.

Step-by-Step Tennessee LLC Formation Checklist (2026)

Choose an Available Entity Name

Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the Tennessee Secretary of State registry.

Appoint a Tennessee Registered Agent

Must have a physical street address in Tennessee (no P.O. boxes) to receive official service of process during regular business hours.

File Articles of Organization ($300 State Fee)

Submit electronically to the Tennessee Secretary of State. Approval is typically granted within Instant online via TNSOS.

Execute an Operating Agreement & Obtain Federal EIN

Establish member capital contributions, voting rights, and obtain a free 9-digit EIN from IRS.gov for business checking accounts.

Maintain Ongoing Legal Good Standing (First day of 4th month after fiscal year end (April 1))

Submit the annual report with the $300 fee to prevent automatic forfeiture or late fee assessments.

Compare Tennessee with Rival & Neighboring States

Evaluating formation options? Review fee structures in competing jurisdictions:

Filing: $100

Filing: $110

Filing: $300

Filing: $70