Costs Guide · What a Tennessee LLC actually costs to form and run, and exactly what our price covers.
Tennessee LLC Costs: What to Budget for Formation and Beyond
The real cost of a Tennessee LLC is more than the formation filing. Tennessee's fees scale with your number of members, the annual report recurs every year, and franchise and excise tax is a separate obligation most owners owe. This page breaks the whole picture into categories so you can plan accurately. The receipt card on this page shows the $300 state fee that applies to LLCs with one to six members.
One price: $199.00/yr covers your formation, your registered agent, and your annual report, plus the $300.00 state filing fee, at cost.
State agency: Tennessee Secretary of State, Division of Business and Charitable Organizations (TNCaB)
Annual report due: April 1 · Processing: Varies
✓ No hidden fees ✓ No second-year price hikes ✓ No missed filings
Receipt / Estimate
Tennessee LLC Formation
- ✓Formation prepared & filed
- ✓Your registered agent, all year
- ✓Annual report prepared & filed
Renews at $199.00/yr + the state's $300.00 annual report fee, at cost. Both state fees are $50 per member ($300 minimum, which covers 1 to 6 members; $3,000 maximum), and most Tennessee LLCs also owe franchise and excise tax to the Department of Revenue.
The One-Time Cost of Forming
Forming a Tennessee LLC starts with the Articles of Organization filed with the Secretary of State. Here is where Tennessee departs from almost every other state: the formation fee is charged per member, not as a flat amount. Form SS-4270 sets the fee at $50 for each member on the filing date, with a minimum of $300 and a maximum of $3,000.
Why the per-member structure matters for budgeting
The $300 minimum covers up to six members, so solo founders and small groups all pay the same $300, which is the figure on the receipt card. From the seventh member on, each member adds $50: seven members pay $350, ten pay $500, and the cost tops out at $3,000 once you reach 60 members. If your LLC will have more than six members, the state fee will be higher than the card shows, so model it before you file; that difference is baked into the state's fee, not something a filing service adds. Paying online by card or e-check also adds a convenience fee, which a mailed check avoids.
Optional formation-adjacent costs
- Name reservation: if you want to hold your name before filing, the Secretary of State charges $20 on Form SS-9425.
- Assumed name (DBA): registering an additional operating name is a separate filing with its own fee.
- Certified copies or a certificate of existence: sometimes required by banks or lenders, available from the state for a fee.
The Recurring Annual Costs
A Tennessee LLC is not a set-it-and-forget-it purchase. Two obligations recur every year, and both need to be in your budget from day one.
Annual report
Every Tennessee LLC files an annual report with the Secretary of State. Like the formation fee, the annual report fee is charged per member: the Secretary of State's FAQ puts it at a $300 minimum, plus $50 for every member over six, up to a $3,000 maximum. It is due on or before the first day of the fourth month after your fiscal year closes: April 1 for a calendar-year LLC. Because it recurs and scales, a growing multi-member LLC should expect this line to grow over time.
Franchise and excise tax
This is the cost most new owners overlook. Most Tennessee LLCs owe franchise and excise (F&E) tax to the Tennessee Department of Revenue (a different agency from the Secretary of State), filed through the TNTAP portal. The excise portion taxes net earnings; the franchise portion is based on net worth, and the Department says the minimum franchise tax is $100, payable whether the company is active or inactive. F&E is due the 15th day of the fourth month after your fiscal year ends. Unlike the annual report, this is a genuine tax, and it is the single largest recurring state cost for many Tennessee LLCs.
Costs That Depend on Your Business
Beyond the state's standard filings, several costs vary with how and where you operate. None are universal, but most owners hit at least one.
Registered agent service
If you use a commercial registered agent instead of serving yourself, that is a recurring annual cost. In exchange you keep your home address off the public record and get reliable coverage for legal documents. Switching agents later costs $20 in state fees (Form SS-4534). Serving as your own agent costs nothing but ties you to an address and puts it in the public database.
Local business licenses and taxes
Tennessee does not issue a single statewide business license, but many counties and cities require a local business license or business tax registration, often tied to your gross receipts. These vary by location and run on their own schedules, separate from state filings.
Professional and industry licensing
Regulated trades and professions (contractors, cosmetologists, health providers, and others) carry their own state licensing fees that have nothing to do with LLC formation. Budget for these if your field is licensed.
Professional help
Legal fees for a custom operating agreement or complex ownership terms, and accounting fees for bookkeeping and tax preparation, are optional but common. F&E tax in particular is one many owners hand to a CPA.
The Cost of Getting It Wrong
The most avoidable Tennessee LLC costs come from missed deadlines. Miss the annual report and the Secretary of State can administratively dissolve the LLC and place it in inactive status; reinstating it costs $70 on Form SS-9410 and requires a tax clearance from the Department of Revenue, and you lose good standing in the meantime. Miss franchise and excise tax and the Department of Revenue can assess penalties and interest on top of the tax due, and because F&E is a real tax with its own return, ignoring it is far more expensive than forgetting an annual report.
There is also the hidden cost of stale contact details. Tennessee sends its annual report reminders by email to the business email on your Articles, so an old inbox can turn a small, on-time fee into a reinstatement. And the Secretary of State's FAQ lists being without a registered agent as its own ground for administrative dissolution. Spending on reliable compliance is almost always cheaper than paying to dig out of a lapse. When you plan a Tennessee LLC budget, count the formation fee, the recurring annual report, the franchise and excise tax, and whatever registered agent and local licensing your situation requires. That is the honest total; the receipt on this page shows the state fee for an LLC with up to six members.
Frequently asked questions
How much does it cost to form a Tennessee LLC?
Tennessee charges its formation fee per member: $50 per member, with a $300 minimum and a $3,000 maximum. For one to six members that's $300, the figure on the receipt card on this page. With seven or more members, add $50 for each member beyond six.
Why does my cost go up with more members?
Tennessee is one of the few states that scales both its formation fee and its annual report fee by the number of members, at $50 per member with a $300 floor and a $3,000 cap. So an LLC with more than six members pays more than a small LLC to form and more each year to file the annual report. It is a genuine Tennessee-specific structure, not a service markup.
What are the recurring yearly costs?
Two main ones. The annual report to the Secretary of State, $300 for up to six members plus $50 for each member after that (capped at $3,000), due the first day of the fourth month after your fiscal year closes. And franchise and excise tax to the Department of Revenue through TNTAP, which is a real tax with a $100 minimum franchise tax, due the 15th day of the fourth month after your fiscal year ends. Registered agent service and any local licenses are additional depending on your situation.
Is franchise and excise tax really required?
For most Tennessee LLCs, yes. It is not optional in the way an add-on service is: it is a state tax administered by the Department of Revenue, and the $100 minimum franchise tax applies even to an inactive company. Some very specific entities qualify for exemptions, but the default assumption for a standard operating LLC is that you owe F&E and need to file it every year.
What happens to my costs if I miss a deadline?
They go up. Missing the annual report can lead to administrative dissolution and a $70 reinstatement that also needs a tax clearance; missing franchise and excise tax can bring penalties and interest on top of the tax. Both are far more expensive than filing on time, which is why reliable compliance and a dependable registered agent effectively save money.
Do I have to pay for a registered agent?
Not necessarily. You can serve as your own registered agent for free if you have a Tennessee street address that isn't a P.O. box. A commercial registered agent service is a recurring cost, but it keeps your address private and guarantees coverage. It is a trade-off between cost and privacy plus reliability, not a mandatory fee.
Ready to form your Tennessee LLC?
Formation, your registered agent, and your annual report. One price, $199.00/yr, with the state fee passed through at cost.
Form Your Tennessee LLC ($199.00/yr All-In)