Tennessee LLC Cost
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The minimum cost to start a Tennessee LLC is $300 in state filing fees. Annual upkeep costs $300 per annual cycle, plus any franchise/privilege tax. Here is the full 2026 breakdown.
One-time formation costs
| Item | Cost |
|---|---|
| Articles of Organization | $300 |
| Name reservation (optional) | typically $10–$50 |
| Certified copy of Articles (optional) | typically $5–$30 |
| Expedited processing (optional) | typically $50–$1,000 depending on tier |
Annual recurring costs
| Item | Cost |
|---|---|
| Annual report | $300 per annual cycle |
| Franchise / privilege tax | Franchise & Excise Tax: $100 minimum franchise + 6.5% excise on net earnings |
| Registered agent service (optional) | $0–$300/year |
Optional professional services
- Formation service (Bizee, Northwest, LegalZoom): $0–$299 + state fee
- Operating agreement template: $0 (DIY) to $200 (attorney-drafted)
- EIN: $0 direct from IRS — never pay a third party for this
Year-1 minimum spend
If you DIY everything: $600 for state fees in the first year. Add federal taxes, sales tax registration, and any local licenses based on your activity.
Tennessee-specific note
Tennessee LLC formation fee is $50 per member with a $300 minimum / $3,000 maximum. The Franchise & Excise Tax applies to most LLCs (with a SMLLC/disregarded exception in some cases).
Frequently asked questions
What is the cheapest way to start an LLC in Tennessee?
File the Articles of Organization yourself online with the Tennessee SoS for $300 and act as your own registered agent.
What does it cost to keep a Tennessee LLC active each year?
Minimum $300 for the annual report, plus any franchise tax owed: Franchise & Excise Tax: $100 minimum franchise + 6.5% excise on net earnings.
Should I form in Tennessee or a different state?
In general, you should form in the state where you actually operate. Forming elsewhere usually requires Foreign Qualification in your home state, which means paying both.
Sources & further reading
Disclaimer: Legal information, not legal advice. For advice about your specific situation, consult a licensed attorney or CPA in your state. See our full disclaimer.