Tennessee LLC Cost (2026): $50 per Member, $300 Minimum, Plus Franchise Tax
Tennessee has no income tax on wages, so many people assume it is cheap for LLCs. It is not. The state prices LLC filings per member with a $300 floor, charges the same formula every year, and applies its franchise and excise taxes to LLCs, including most single-member LLCs. A small Tennessee LLC should budget at least $400 a year in state costs.
The $50 per Member Formula ($300 Minimum)
Tennessee LLCs are formed by filing Articles of Organization with the Secretary of State’s Division of Business and Charitable Organizations, online through the TNBear system or by mail. The fee is $50 for each member as of the filing date, with a minimum of $300 and a maximum of $3,000. That means any LLC with one to six members pays $300. A seventh member raises it to $350, and the cap is reached at 60 members.
Reserving a name in advance costs $20.
Northwest Registered Agent
Tennessee’s business search shows your registered agent address to anyone. $39 formation + $300 state fee, free registered agent for year one, then $125/yr.
$39 formation fee · Free registered agent for 12 months · Your address stays off public records · No data selling · No hidden fees
Form Your LLC with Northwest ($39) →Lowest 3-year cost we found: Northwest $289 vs Bizee $298 vs ZenBusiness $497 (service fees; state fees extra). Northwest also puts its address on your public filings instead of yours where the state allows.
The $300 Annual Report
The annual report uses the same formula: $50 per member, $300 minimum, $3,000 maximum. It is due on or before the first day of the fourth month after the LLC’s fiscal year ends, which is April 1 for a calendar-year LLC. The first report comes the year after formation: an LLC formed in July 2026 files its first report by April 1, 2027.
Franchise and Excise Tax: Why Most LLCs Pay
Tennessee’s franchise and excise taxes, filed with the Department of Revenue, apply to LLCs regardless of how they are taxed federally.
- Franchise tax: 0.25% of the LLC’s net worth, with a $100 minimum. Since 2024 it is based on net worth only; the alternative property measure was repealed.
- Excise tax: 6.5% of net earnings from Tennessee business.
- Single-member LLCs: an LLC owned by one individual is still subject to franchise and excise tax. Only a single-member LLC whose sole member is a corporation is disregarded for these taxes.
Some entities qualify for exemptions, such as certain family-owned businesses with mostly passive income. Check with a Tennessee tax professional before assuming one applies to you.
Late Reports and the $70 Reinstatement
An LLC that does not file its annual report, or does not keep a registered agent, can be administratively dissolved. Reinstatement requires filing the missing reports, paying the fees owed, and a $70 reinstatement fee. Unfiled franchise and excise returns with the Department of Revenue carry their own penalties and interest.
Tennessee 3-Year Cost
| Scenario | Year 1 | Year 2 | Year 3 | 3-Year Total |
|---|---|---|---|---|
| Northwest Registered Agent | $439 ($300 filing + $100 min. franchise tax + $39, RA free) | $525 ($300 annual report + $100 franchise tax + $125 RA) | $525 (same) | $1,489 |
| ZenBusiness (Starter) | $499 ($300 + $100 + $0 + $99 RA) | $599 ($300 + $100 + $199 RA) | $599 (same) | $1,697 |
| DIY, self as registered agent | $400 ($300 filing + $100 min. franchise tax) | $400 ($300 annual report + $100 franchise tax) | $400 (same) | $1,200 |
The table covers an LLC with six or fewer members that pays only the $100 minimum franchise tax and no excise tax. A profitable LLC owes 6.5% excise tax on top. With Northwest Registered Agent the extra $289 over three years is registered agent service.
Form your Tennessee LLC for $39 + $300 state fee.
Northwest Registered Agent: $39 formation, free Year 1 registered agent, compliance reminders, and your home address kept off public records.
Form My Tennessee LLC for $39
Prefer a $0 upfront starter plan? Compare ZenBusiness (registered agent $199/yr).
When a Tennessee LLC may not be worth it yet: $400 a year in state costs is significant for a small side business. If you have little liability exposure, a sole proprietorship avoids the annual report and the franchise tax minimum until the business can carry them.
Why I Choose Northwest Registered Agent
After forming 3 LLCs myself and helping clients through the process, I keep coming back to Northwest Registered Agent. Here is why:
- Remarkable Customer Support: Quick, human responses every time.
- Caring & Privacy-Focused: Genuine service with full respect for your privacy.
- Lightning-Fast Formation: Often faster than promised.
- Incredible Value: $39 includes a free business address, mail scanning, and more.
- Clear & Transparent: No hidden fees or surprises.
Ready to form your business? Choose Northwest today!
Frequently Asked Questions
How much does it cost to form an LLC in Tennessee?
$50 per member, with a $300 minimum and $3,000 maximum. Any LLC with one to six members pays $300. With Northwest Registered Agent the first-year filing total is $339 including a free first year of registered agent service, before franchise tax.
How much is the Tennessee LLC annual report?
The same formula: $50 per member, $300 minimum, $3,000 maximum, due by the first day of the fourth month after the fiscal year ends (April 1 for calendar-year LLCs).
Do single-member LLCs pay Tennessee franchise and excise tax?
Yes, if the member is an individual. Only a single-member LLC owned by a corporation is disregarded. The franchise tax minimum is $100 and the excise tax is 6.5% of net earnings.
How much does it cost to reinstate a Tennessee LLC?
$70, plus the missing annual reports and any fees owed.
