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How Much Does an LLC Cost in Tennessee?
An LLC in Tennessee costs $600 in Year 1: a $300 state filing fee plus $300 in recurring state fees ($300 / yr min franchise/excise) for the first year. After that it costs $300 per year, for a 5-year state total of $1,800. That makes Tennessee the 5th most expensive state to form an LLC — the national average Year 1 cost is $220 and the median is $160.
Tennessee LLC Fee Breakdown
| Fee | Cost |
| State filing fee (one-time) | $300 |
| Recurring state fees — $300 / yr min franchise/excise | $300 / yr |
| Year 1 total (filing fee + first year) | $600 |
| 5-year total (filing fee + 5 × annual) | $1,800 |
How Tennessee Compares to Other States
- Rank: Tennessee is the 5th most expensive state to form an LLC — #47 of 51 jurisdictions by 5-year state cost ($1,800).
- Year 1 vs the nation: $600 in Year 1 — $380 more than the national average of $220 (median $160).
- 5-year vs the nation: $1,800 over five years, against a national average of $586 and a median of $350.
- Franchise tax: yes — Tennessee's recurring charge is a franchise tax ($300 / yr min franchise/excise), already included in every total on this page.
- Cheapest in the US: Arizona at $50 over 5 years. Most expensive: California at $4,120.
Tennessee LLC Annual Fees & Franchise Tax
Tennessee charges $300 per year in recurring state fees ($300 / yr min franchise/excise). Over five years that is $1,500 in recurring fees alone — $1,800 including the one-time filing fee.
Yes. Tennessee charges an LLC franchise tax, and it is already included in the numbers on this page: $300 / yr min franchise/excise ($300 per year). It forms part of the $600 Year 1 total and the $1,800 5-year total.
How to Form an LLC in Tennessee (Step by Step)
- Choose a name. Pick a distinguishable name that includes "LLC" and check it is available on the Tennessee Secretary of State website before you file.
- Appoint a registered agent. Name a person or service with a physical street address in Tennessee who can receive legal mail during business hours — be your own for free, or hire one (see our registered agent guide).
- File your formation document. File the Articles of Organization (called a Certificate of Formation in some states) with the Tennessee Secretary of State and pay the $300 filing fee.
- Create an operating agreement. Not filed with the state, but it records who owns what and how the LLC is run — banks and partners will ask for it.
- Get an EIN. Apply free on the IRS website in about 10 minutes — see our EIN guide. You need it to hire, pay taxes, and open a business account.
- Open a business bank account and stay compliant. Keep business money separate (see our business bank account guide), then keep up with Tennessee's recurring fees — $300 / yr min franchise/excise — so the LLC stays in good standing (see our annual reports guide).
Good to Know About Tennessee LLC Costs
Tennessee charges per member ($50/member, $300 minimum) both to file and annually, and LLCs face franchise & excise tax with a $300 minimum — making TN one of the priciest states over 5 years. Members beyond six raise the per-year cost further.
File on the official Tennessee Secretary of State site →
Fees verified against official state sources — last checked October 26, 2026.
Tennessee LLC Cost FAQs
How much does it cost to start an LLC in Tennessee?
The state filing fee in Tennessee is $300. Adding the first year of recurring state fees ($300 / yr min franchise/excise) brings the Year 1 state cost to $600. Optional extras — a registered agent service, an operating agreement template, or a formation service — cost extra, but the state itself charges $600 in Year 1.
How much does an LLC in Tennessee cost every year?
Tennessee charges $300 per year in recurring state fees ($300 / yr min franchise/excise). Over five years that is $1,500 in recurring fees alone — $1,800 including the one-time filing fee.
Does Tennessee charge LLCs a franchise tax?
Yes. Tennessee charges an LLC franchise tax, and it is already included in the numbers on this page: $300 / yr min franchise/excise ($300 per year). It forms part of the $600 Year 1 total and the $1,800 5-year total.
Do I need a registered agent for an LLC in Tennessee?
Yes. Every LLC in Tennessee must name a registered agent with a physical street address in the state who can receive legal and official mail during business hours. You can be your own agent if you live in Tennessee and are reliably available, or hire a service — typically around $125 per year — to keep your own address off the public record.
What is the cheapest way to form an LLC in Tennessee?
File it yourself on the official Tennessee Secretary of State website, linked on this page. Filing direct costs just the $300 state filing fee (plus the $300 / yr min franchise/excise recurring fee) and skips formation-service markups. Use the free LLC cost calculator on this site first so you know your exact Year 1 and 5-year totals before you file.