Tennessee LLC Cost and Filing Fees (2026)
A Tennessee LLC costs $50 per member to form by filing Articles of Organization (Form SS-4270) with the Secretary of State - a $300 minimum and a $3,000 maximum, so most small LLCs pay $300. Ongoing costs include a per-member annual report (same $300 minimum) and franchise and excise tax (0.25% of net worth, $100 minimum, plus 6.5% excise).
Quick Answer
- Formation fee
- $50/member - $300 minimum, $3,000 maximum (Form SS-4270)
- Annual report
- $50/member - $300 minimum, $3,000 maximum
- Name reservation
- $20 (Form SS-9425, optional)
- Franchise & excise tax
- 0.25% net worth ($100 min) + 6.5% net earnings
- Business license
- $15 if gross receipts exceed $3,000
- EIN
- $0 from the IRS
The Short Answer on Tennessee LLC Cost
Tennessee LLC cost breaks into a one-time formation fee and recurring annual costs. The one-time cost to form is the Articles of Organization fee - $50 per member, subject to a $300 minimum and a $3,000 maximum - paid to the Tennessee Secretary of State. Because the minimum is $300, an LLC with anywhere from one to six members pays exactly $300 to organize. The recurring costs are the annual report (priced the same per-member way) and the franchise and excise tax administered by the Department of Revenue. For the full formation walkthrough, see how to form an LLC in Tennessee.
Formation Fee: Articles of Organization (Form SS-4270)
The Articles of Organization filing fee is the price of creating the LLC. Tennessee sets it at $50 for each member in existence on the date of filing, under Tenn. Code section 48-249-1007, and caps the calculation between a $300 minimum and a $3,000 maximum. In practice, the $3,000 ceiling is reached at 60 members, so the per-member structure only matters for larger LLCs. If the articles prohibit the LLC from doing business in Tennessee, the fee is a flat $300 regardless of member count. You pay this fee once, when you file Form SS-4270 with the Division of Business Services.
Full Tennessee LLC Cost Table (2026)
The table below lists the Tennessee LLC costs a typical owner encounters, each verified against the Secretary of State fee schedule (Tenn. Code section 48-249-1007) or the Department of Revenue. Amounts are effective for 2026 and are set by the state, not by any filing service.
| Cost | Form / source | Amount (2026) | Frequency |
|---|---|---|---|
| Articles of Organization | SS-4270 | $50/member; $300 min, $3,000 max | Once |
| Name reservation (optional) | SS-9425 | $20 | Once (4 months) |
| Annual report | Secretary of State | $50/member; $300 min, $3,000 max | Yearly |
| Registered agent change (on report) | Annual report | +$20 surcharge | As needed |
| Franchise tax | FAE 170 | 0.25% of net worth; $100 minimum | Yearly |
| Excise tax | FAE 170 | 6.5% of net earnings | Yearly |
| Business license (if applicable) | County/city clerk | $15 | Yearly |
| Articles of Termination (to close) | SS-4245 | $20 | Once |
| Reinstatement (if dissolved) | SS-9410 | $70 | As needed |
| Federal EIN | IRS Form SS-4 | $0 | Once |
Recurring Cost: The Annual Report
The Tennessee annual report is a yearly filing with the Secretary of State that keeps the LLC in good standing, and it carries the same per-member pricing as formation: $50 per member, a $300 minimum, and a $3,000 maximum. It is due on or before the first day of the fourth month after the LLC's fiscal year closes - April 1 for a calendar-year LLC. If you change your registered agent or registered office on the report, the Secretary of State adds a $20 surcharge. Missing the report can lead to administrative dissolution. See Tennessee annual report and taxes for the filing mechanics.
Recurring Cost: Franchise and Excise Tax
Franchise and excise tax is the largest recurring cost for a profitable Tennessee LLC and is administered by the Department of Revenue on Form FAE 170. The franchise tax is 0.25% of the LLC's net worth, with a minimum of $100 that applies even to an inactive registered entity. Effective for tax years ending on or after January 1, 2024, Tennessee repealed the property measure, so franchise tax is now computed on net worth alone. The excise tax is 6.5% of Tennessee net earnings. The combined return is due on the 15th day of the fourth month after the fiscal year closes (April 15 for calendar-year filers). Tennessee has no tax on wages or salaries, so there is no separate personal state income tax on your take-home pay.
Business License and Local Costs
A Tennessee business license is a local cost tied to gross receipts, not a statewide LLC fee. A business with more than $3,000 but under $100,000 in gross receipts needs a minimal activity license ($15 from the county and/or city clerk); a business at or above $100,000 needs a standard business license and must also register and file business tax with the Department of Revenue. Both licenses cost $15 to issue and renew. Regulated professions and some cities charge additional permit fees. See business license in Tennessee for the thresholds and filing steps.
One-Time vs. Recurring Costs
Separating one-time from recurring costs makes a Tennessee LLC budget easy to plan. The one-time costs are the Articles of Organization fee ($50 per member, $300 minimum) and, if you use them, the optional $20 name reservation and any certified copies. Everything else is recurring: the annual report ($50 per member, $300 minimum), the franchise tax ($100 minimum, or 0.25% of net worth if higher), the 6.5% excise tax on net earnings, and the $15 business license if your gross receipts exceed $3,000. Because the two $300 minimums are fixed by Tenn. Code section 48-249-1007 and the $100 franchise minimum is fixed by the Department of Revenue, a Tennessee LLC has a predictable floor: roughly $300 to start and about $400 to $415 a year to maintain before profit-based tax. Knowing this floor up front helps you avoid overpaying a formation service for filings you can complete yourself. See how to form an LLC in Tennessee for the filing steps behind each cost.
Cost to Register a Foreign LLC in Tennessee
If your LLC was formed in another state and you want to operate in Tennessee, you register as a foreign LLC rather than forming a new one - and the fee follows the same per-member structure. A foreign LLC applies for a certificate of authority with the Secretary of State and pays $50 per member, again subject to the $300 minimum and $3,000 maximum under Tenn. Code section 48-249-1007. After registering, a foreign LLC files the same annual report and pays the same franchise and excise tax as a domestic Tennessee LLC, and it must maintain a Tennessee registered agent. Registering as a foreign LLC is usually cheaper and simpler than dissolving and re-forming, and it keeps your original formation state intact.
Cost Example: A Two-Member Nashville LLC
Consider a two-member LLC formed in Nashville. Formation costs the $300 minimum (two members is under the six-member point where the $300 floor still governs). In year one, the owners also pay a $15 minimal activity license because gross receipts top $3,000 but stay under $100,000. Each following year, they pay the $300 annual report and, once profitable, the franchise tax ($100 minimum) and 6.5% excise tax on net earnings. Their predictable recurring state cost is therefore about $415 before income-based tax - the $300 report plus the $15 license plus the $100 minimum franchise tax. Compare with the national baseline at how much does an LLC cost.
How to Keep Tennessee LLC Costs Down
Beyond the state fees, some Tennessee LLC costs are optional and depend on how you run the business. Common ones include a commercial registered agent service (an annual fee you avoid by serving yourself), an operating agreement drafted by an attorney, certified copies or a certificate of existence from the Secretary of State, and accounting or tax preparation help. None of these are required by the state to keep the LLC alive. Getting a federal EIN from the IRS is always free - you never need to pay a third party for one.
You can keep Tennessee LLC costs to the state minimums with a few choices. Serve as your own registered agent to avoid a service fee; file the Articles of Organization and annual report yourself online instead of paying a formation company; get your EIN directly from the IRS for free; and file the annual report on time to avoid administrative dissolution and the $70 reinstatement fee. Because the $300 formation minimum and $300 annual report minimum are fixed by statute, they cannot be reduced - but everything layered on top of them is optional. Review whether an S-corp election lowers your overall tax before assuming the default LLC treatment is cheapest.
Frequently Asked Questions
How much does it cost to form an LLC in Tennessee?
The Articles of Organization (Form SS-4270) fee is $50 per member, with a $300 minimum and a $3,000 maximum. An LLC with six or fewer members pays the $300 minimum to the Secretary of State.
Why is the Tennessee LLC fee based on members?
Tennessee sets the fee at $50 for each member in existence on the filing date under Tenn. Code section 48-249-1007, subject to a $300 floor and a $3,000 cap. Most small LLCs pay exactly $300.
Does Tennessee charge an annual LLC fee?
Yes. The annual report costs $50 per member, with a $300 minimum and a $3,000 maximum, paid to the Secretary of State each year by the first day of the fourth month after the fiscal year end.
What ongoing taxes does a Tennessee LLC pay?
Most owe franchise tax of 0.25% of net worth (minimum $100) and excise tax of 6.5% of net earnings on Form FAE 170, plus a $15 business license if gross receipts exceed $3,000.
Is a registered agent an extra cost in Tennessee?
Not necessarily. You can act as your own registered agent for free with a physical Tennessee address. Commercial services charge an annual fee, but the state does not require you to hire one.
Related
- How much does an LLC cost? (cluster hub)
- How to form an LLC in Tennessee
- Tennessee LLC annual report and taxes
- Tennessee registered agent requirements
- Business license in Tennessee
- How to get an EIN
- How to form an LLC
Sources
- Tennessee Secretary of State - What is the required filing fee? ($50/member, $300 minimum, $3,000 maximum).
- Tennessee Secretary of State - Division of Business Services (annual report and entity filings).
- Tennessee Department of Revenue - Business Tax (state business license and gross-receipts tax).
- Tennessee Department of Revenue - BUS-15, Minimal Activity Licenses ($15 license, $3,000 threshold).
- Tennessee Code - § 48-249-1007, Filing, service and copying fees.
- Tennessee Secretary of State - Form SS-9425, Application for Name Reservation (PDF, $20).
- Tennessee Secretary of State - Form SS-4245, Articles of Termination (PDF, $20).
- Tennessee Secretary of State - Form SS-9410, Application for Reinstatement (PDF, $70).
- Tennessee Department of Revenue - Franchise & Excise Tax (0.25% net worth, $100 minimum; 6.5% excise).
- Tennessee Department of Revenue - FT-13, Property Measure Repeal (net-worth-only base, 2024).
- Tennessee Department of Revenue - BUS-13, Business Licenses Overview ($3,000 / $100,000 thresholds; $15 license).
- Tennessee Department of Revenue - F&E-5, Due Date for Form FAE 170.
- IRS - Get an Employer Identification Number (free EIN).
- IRS - Limited Liability Company (LLC) (federal classification).
- Legal Information Institute - 26 CFR § 301.7701-3, Entity classification election.
LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Tennessee Secretary of State and Tennessee Department of Revenue before acting.