Tennessee LLC Value (2026): $50 per Member, $300 Minimal, Plus Franchise Tax
Tennessee has no earnings tax on wages, so many individuals assume it’s low-cost for LLCs. It’s not. The state costs LLC filings per member with a $300 ground, costs the identical method yearly, and applies its franchise and excise taxes to LLCs, together with most single-member LLCs. A small Tennessee LLC ought to funds not less than $400 a yr in state prices.
The $50 per Member System ($300 Minimal)
Tennessee LLCs are shaped by submitting Articles of Group with the Secretary of State’s Division of Enterprise and Charitable Organizations, on-line by way of the TNBear system or by mail. The price is $50 for every member as of the submitting date, with a minimal of $300 and a most of $3,000. Which means any LLC with one to 6 members pays $300. A seventh member raises it to $350, and the cap is reached at 60 members.
Reserving a reputation prematurely prices $20.
Northwest Registered Agent
Tennessee’s enterprise search exhibits your registered agent deal with to anybody. $39 formation + $300 state price, free registered agent for yr one, then $125/yr.
$39 formation price · Free registered agent for 12 months · Your deal with stays off public data · No information promoting · No hidden charges
Form Your LLC with Northwest ($39) →Lowest 3-year price we discovered: Northwest $289 vs Bizee $298 vs ZenBusiness $497 (service charges; state charges additional). Northwest additionally places its deal with in your public filings as an alternative of yours the place the state permits.
The $300 Annual Report
The annual report makes use of the identical method: $50 per member, $300 minimal, $3,000 most. It’s due on or earlier than the primary day of the fourth month after the LLC’s fiscal yr ends, which is April 1 for a calendar-year LLC. The primary report comes the yr after formation: an LLC shaped in July 2026 information its first report by April 1, 2027.
Franchise and Excise Tax: Why Most LLCs Pay
Tennessee’s franchise and excise taxes, filed with the Division of Income, apply to LLCs no matter how they’re taxed federally.
- Franchise tax: 0.25% of the LLC’s internet value, with a $100 minimal. Since 2024 it’s based mostly on internet value solely; the choice property measure was repealed.
- Excise tax: 6.5% of internet earnings from Tennessee enterprise.
- Single-member LLCs: an LLC owned by one particular person remains to be topic to franchise and excise tax. Solely a single-member LLC whose sole member is a company is disregarded for these taxes.
Some entities qualify for exemptions, comparable to sure family-owned companies with largely passive earnings. Test with a Tennessee tax skilled earlier than assuming one applies to you.
Late Experiences and the $70 Reinstatement
An LLC that doesn’t file its annual report, or doesn’t maintain a registered agent, will be administratively dissolved. Reinstatement requires submitting the lacking reviews, paying the charges owed, and a $70 reinstatement price. Unfiled franchise and excise returns with the Division of Income carry their very own penalties and curiosity.
Tennessee 3-Yr Value
| State of affairs | Yr 1 | Yr 2 | Yr 3 | 3-Yr Whole |
|---|---|---|---|---|
| Northwest Registered Agent | $439 ($300 submitting + $100 min. franchise tax + $39, RA free) | $525 ($300 annual report + $100 franchise tax + $125 RA) | $525 (identical) | $1,489 |
| ZenBusiness (Starter) | $499 ($300 + $100 + $0 + $99 RA) | $599 ($300 + $100 + $199 RA) | $599 (identical) | $1,697 |
| DIY, self as registered agent | $400 ($300 submitting + $100 min. franchise tax) | $400 ($300 annual report + $100 franchise tax) | $400 (identical) | $1,200 |
The desk covers an LLC with six or fewer members that pays solely the $100 minimal franchise tax and no excise tax. A worthwhile LLC owes 6.5% excise tax on high. With Northwest Registered Agent the additional $289 over three years is registered agent service.
Kind your Tennessee LLC for $39 + $300 state price.
Northwest Registered Agent: $39 formation, free Yr 1 registered agent, compliance reminders, and your private home deal with stored off public data.
Form My Tennessee LLC for $39
Want a $0 upfront starter plan? Compare ZenBusiness (registered agent $199/yr).
When a Tennessee LLC will not be value it but: $400 a yr in state prices is critical for a small aspect enterprise. In case you have little legal responsibility publicity, a sole proprietorship avoids the annual report and the franchise tax minimal till the enterprise can carry them.
Why I Select Northwest Registered Agent
After forming 3 LLCs myself and serving to shoppers by way of the method, I maintain coming again to Northwest Registered Agent. Right here is why:
- Outstanding Buyer Help: Fast, human responses each time.
- Caring & Privateness-Targeted: Real service with full respect on your privateness.
- Lightning-Quick Formation: Usually sooner than promised.
- Unbelievable Worth: $39 features a free enterprise deal with, mail scanning, and extra.
- Clear & Clear: No hidden charges or surprises.
Able to kind your enterprise? Select Northwest right now!
Continuously Requested Questions
How a lot does it price to kind an LLC in Tennessee?
$50 per member, with a $300 minimal and $3,000 most. Any LLC with one to 6 members pays $300. With Northwest Registered Agent the first-year submitting whole is $339 together with a free first yr of registered agent service, earlier than franchise tax.
How a lot is the Tennessee LLC annual report?
The identical method: $50 per member, $300 minimal, $3,000 most, due by the primary day of the fourth month after the fiscal yr ends (April 1 for calendar-year LLCs).
Do single-member LLCs pay Tennessee franchise and excise tax?
Sure, if the member is a person. Solely a single-member LLC owned by a company is disregarded. The franchise tax minimal is $100 and the excise tax is 6.5% of internet earnings.
How a lot does it price to reinstate a Tennessee LLC?
$70, plus the lacking annual reviews and any charges owed.
