LLC Costs in Tennessee (TN)
Open-data reference.
Tennessee charges $300 per member (minimum $300) for both formation and annual reports. A single-member LLC pays $300 each year. Multi-member LLCs may pay more. Tennessee has no income tax on wages, only on investment income.
Updated 2025 · Source: Tennessee Secretary of State
Complete Cost Breakdown
| Cost Item | Amount |
|---|---|
| State Filing Fee | $300 |
| Annual Report | $300 |
| Registered Agent | $125/yr |
| Expedited Filing (optional) | $100 |
| Total — First Year | $725 |
Cheapest states vs. Tennessee
What Tennessee LLC Costs Really Mean for Small Business Owners
Tennessee charges a $300 filing fee to form an LLC and charges $300 annually for the Annual Report. Including a registered agent ($125/yr), the total first-year cost is $725. Across all 50 states plus DC, LLC formation costs range from roughly $50 (Kentucky, Arkansas, New Mexico) to over $800 (Massachusetts, California with its $800 franchise tax) — a 16x gap. Tennessee ranks #47 of 51 states on total first-year cost, which is 90% above the national average of $381.
According to Census Bureau Business Formation Statistics, Americans filed over 5.5 million business applications in 2024, with LLC filings accounting for the majority of new formal business entities. The LLC structure is popular because it provides limited liability protection like a corporation while allowing pass-through taxation (profits flow to the owner's personal return via Schedule C, K-1, or 1040), avoiding the double taxation of C-corps. IRS Statistics of Income data shows LLCs represent roughly 70% of new business entity formations nationally. Tennessee offers online filing through the Secretary of State, which typically processes faster than paper submissions. Standard processing in Tennessee runs 5-7 business days, with expedited service available for an additional $100 reducing this to Same business day.
Budget beyond the state's direct fees. Most small business owners also spend $500–$2,000 in year one on general liability insurance, $50–$500 on business licenses and permits (varies by city and industry), and optionally $0–$500 on operating agreement templates or attorney review. Federal EIN applications are free through the IRS. If you plan to hire employees, add state unemployment tax registration and workers' compensation insurance. The total "all-in" cost to launch a functional LLC in Tennessee — fees, insurance, licensing, and basic setup — typically lands between $1,225 and $3,225 in year one, depending on industry and coverage choices. Verify all current fees directly with the Tennessee Secretary of State at https://sos.tn.gov before filing, as rates can change with each budget cycle.
How to Form an LLC in Tennessee
Your LLC name must include "Limited Liability Company", "LLC", or "L.L.C." and be distinguishable from other businesses registered in Tennessee. Check name availability on the Tennessee Secretary of State website before filing.
Every Tennessee LLC must have a registered agent with a physical street address in Tennessee. You can serve as your own agent, use a business member, or hire a professional registered agent service (~$125/year).
Submit your Articles of Organization (sometimes called Certificate of Organization or Certificate of Formation) to the Tennessee Secretary of State online. The filing fee is $300. Standard processing time is 5-7 business days. Expedited filing ($100) reduces this to Same business day.
While not always required by Tennessee law, an operating agreement is strongly recommended. It defines ownership percentages, management structure, profit distribution, and procedures for adding members or dissolving the LLC. Keep this document internally — you don't file it with the state.
Apply for a federal Employer Identification Number (EIN) from the IRS — it's free and takes minutes online. You'll need your EIN to open a business bank account, hire employees, and file federal taxes. Keep your business finances completely separate from personal accounts.
Tennessee requires LLCs to file a Annual Report annually. The fee is $300. Failing to file can result in your LLC being administratively dissolved.
How Tennessee Compares
Tennessee is $344 (90%) more expensive than the national average for first-year LLC costs.
Cost rank: #47 out of 51 states (#1 = cheapest).
Common Questions About Tennessee LLCs
How long does it take to form an LLC in Tennessee?
Standard processing time is 5-7 business days. Expedited service costs $100 and reduces this to Same business day. Online filing, when available, often processes faster than paper filing.
How much does the Tennessee annual LLC fee cost?
Tennessee requires a Annual Report annually. The fee is $300.
Can I file my Tennessee LLC online?
Yes — Tennessee offers online LLC filing through the Secretary of State's website at https://sos.tn.gov. Online filing is generally faster than paper filing.
Do I need an attorney to form an LLC in Tennessee?
No — you can form an LLC in Tennessee without an attorney by filing directly with the Secretary of State. However, consulting an attorney is recommended for complex ownership structures, operating agreements, industry-specific regulations, or multi-state operations. Attorney fees are not included in our cost estimates.
Tennessee LLC Quick Facts
Lower-Cost Alternatives
States with lower first-year costs (may require foreign LLC registration if operating in TN):
Compare All States
See how Tennessee stacks up against all 50 states and DC in one sortable table.
View Full ComparisonRead our methodology — how this data is sourced, computed, and verified.
All federal data sources used on this page
- U.S. Census Bureau ACS — demographic + housing + income data. census.gov/programs-surveys/acs
- BLS Occupational Employment and Wage Statistics (OEWS) — wage + employment by occupation. bls.gov/oes
- BEA Regional Economic Accounts — GDP + personal income by state/metro. bea.gov/data/regional
- U.S. Census Bureau County Business Patterns — establishment + employment by industry. census.gov/cbp
- IRS Statistics of Income (SOI) — tax-return aggregate data. irs.gov/statistics
- data.gov — U.S. federal open-data portal — discovery layer for additional federal sources. data.gov