Tennessee employs a unique member-based fee structure that distinguishes it from most states using flat-rate pricing. The state charges $300 for LLCs with up to 6 members, then adds $50 for each additional member beyond 6, with a maximum cap of $3,000. This scaling approach means formation costs align with business complexity rather than following uniform pricing.
Online filing provides immediate approval or processing within 1-2 business days, while mail submissions require 2-3 weeks for postal transit and state processing. Tennessee doesn't offer expedited processing for LLC formations since its online system already delivers the fastest available service, providing cost-effective processing without premium fees.
Tennessee's member-based fee structure creates different costs depending on your LLC's ownership structure. The state charges $50 per LLC member, with built-in minimums and maximums that protect both small and large businesses from extreme costs.
This unusual structure means Tennessee can be expensive for small businesses, but becomes more reasonable for large entities that would pay thousands in other high-fee states.
Your annual report follows the identical fee structure—$50 per member with the same $300 minimum and $3,000 maximum. This ongoing cost maintains your LLC's good standing and is due each year on the first day of the fourth month following your fiscal year end (typically April 1 for most LLCs).
Tennessee's member-based structure positions it among higher-cost states for small LLCs, particularly when compared to neighboring states using flat-rate pricing.
Regional comparisons:
Tennessee's $300 minimum exceeds the typical $50-$150 formation fee range, placing it in the top quartile of state costs. The annual maintenance burden compounds this expense, as most states charge $50-$100 yearly, while Tennessee's $300 minimum ranks among the highest nationally.
However, Tennessee's lack of state income tax (though the state has a franchise tax) on most LLC profits can offset these higher administrative costs for profitable businesses. The $3,000 fee cap also makes Tennessee more reasonable for very large entities compared to states with unlimited fee structures.
Beyond core Articles of Organization costs, several optional and amendment charges can affect your total Tennessee LLC expenses throughout the business lifecycle. This includes:
Tennessee's approach keeps additional costs reasonable while providing necessary flexibility for business changes and official documentation needs.
Discern automates Tennessee's entire compliance process by:
Ready to streamline your Tennessee LLC filings? Book a demo of Discern today.
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