Tennessee LLC Cost: Average Fees Explained

Tennessee is the state where the filing fee is only part of the story. The Articles of Organization alone are among the highest in the country, and the state then layers on an annual report fee, franchise tax, and potentially excise tax. A budget built around the formation fee will fall short.

Figures come from the sources named in each table and were checked on Oct 11, 2026. Tennessee fees and tax rules change, so confirm them with the Secretary of State and the Department of Revenue.

Tennessee prices the Articles of Organization by member count, which is unusual. Small LLCs sit at the low end.

• One to six members: $300
• Seven members: $350
• Each additional member beyond six: $50
• Maximum charge for large LLCs: $3,000

A solo owner or a small partnership pays the base amount. The fee grows with membership, so an LLC with a long member list should plan for the higher end.

These recurring items are what separate Tennessee from cheaper states.

The annual report costs $300/yr for an LLC with one to six members, per LLC University. The report fee also scales with membership.

Franchise tax is separate. The sources list a minimum of $100/yr, though the actual amount depends on how the state measures your LLC's net worth or property. The business tax has a minimum of $22/yr per location, and Tennessee also has an excise tax on net earnings. The headline budget on this page counts the franchise tax minimum but not excise. Ask a licensed CPA to model both for your specific situation, because this page does not offer tax advice.

• Name reservation for 120 days: $20
• Assumed name registration: $20
• Certificate of Existence: $20
• City or county business license registration: $15

None of these is large. They matter mainly because they stack on top of the Articles of Organization.

A Tennessee LLC must have a registered agent. You can serve in the role if you have an in-state address, or you can hire a commercial agent, quoted at $100 – $300/yr. A solo owner who works from home often saves this cost, though some prefer a commercial agent for privacy.

Tennessee estimates look inconsistent at first glance.

Two sources report only the filing fee. The third reports a first-year budget range, which includes annual costs and franchise tax. None of them is wrong. They answer different questions. If you only want to know what to pay the state to form, use the filing fee. If you want to know what the LLC costs to run for a year, use the larger range and add excise tax once you know your expected earnings.

If you operate in Tennessee, you generally have to register here regardless of where you formed. Forming in another state and then registering as a foreign LLC adds a second set of fees, so most Tennessee-based owners form at home. A licensed attorney can help compare the two routes if your situation is unusual.

Start with the Articles of Organization at $300 for a small LLC. Add the annual report, which can fall due soon after formation, then the franchise tax minimum and any business tax. Include a registered agent if you hire one and a city or county license if your location requires it. Reserve room for excise tax if the LLC expects to earn a profit.

That sequence is how the first-year range arises. A lean solo setup lands near the bottom of it, and a company with more members, a paid agent, and local licensing sits near the top. The table above shows each component so you can price your own version.

Because Tennessee costs vary with membership and tax position, a flat quote from a formation service can be misleading. Ask whether it covers the right member tier, whether the annual report is included or billed later, and what the registered agent plan costs after year one. Tax questions, especially franchise and excise, belong with a licensed CPA, and ownership terms belong with a licensed attorney.

The first mistake is planning around the filing fee alone and then meeting the annual report, which costs the same base amount again for a small LLC. The second is forgetting that franchise tax and business tax are separate from the Secretary of State's fees and are paid to the Department of Revenue. The third is assuming a solo LLC is automatically exempt from tax. Rules differ by situation, so confirm each item with a licensed CPA before you set a budget.