Tennessee LLC formation cost

Forming an LLC in Tennessee takes careful budgeting beyond the initial filing fee, because the fee itself is priced by member count. Under TCA § 48-249-1007(d), Articles of Organization cost $300 for an LLC with one to six members, then $50 for every member above six, capped at $3,000. A 20-member LLC pays $1,000, and the $3,000 cap is reached at 60 members. Some commercial sites still describe a flat $300 fee; the per-member schedule is what the statute and the Secretary of State publish.

Recurring costs come from the same statute and from two other agencies: the annual report reuses the member-based schedule, the Department of Revenue collects franchise and excise tax, and county clerks, for taxpayers located within a county, or the appropriate city official, for taxpayers located within an incorporated municipality, issue licenses under local licensing obligations tied to location and, in part, gross receipts.

Required Tennessee LLC formation costs

The state filing fee is the only formation charge fixed by statute; every LLC must also designate a registered agent, and that cost depends on who serves.

Under TCA § 48-249-109, the agent may be a Tennessee resident or an authorized entity at a physical Tennessee street address; a P.O. box does not satisfy that requirement.

Optional formation costs

Beyond the member-based filing fee, the requirements for forming a Tennessee LLC leave room for optional expenses.

1. Professional services

Tennessee sets no fee for professional help, so the figures below are typical third-party quotes rather than official rates. Attorney-led formation with a custom operating agreement is commonly quoted at $500 to $2,500 or more, and an accountant review of Tennessee franchise and excise exposure at $100 to $500. An online formation service typically charges $0 for a basic plan up to about $299 for premium features, on top of the state filing fee.

2. Additional filings

Beyond professional help, a handful of one-time state filings add to the total.

• Name reservation costs $20 on the Secretary of State's fee schedule and holds the name for four months under TCA § 48-249-107(a).

• Assumed name (DBA) registration lasts five years under TCA § 48-249-106(d)(4), with a $20 filing fee set in TCA § 48-249-1007(a)(8).

• Tennessee's fee schedule does not currently list a paid expedited-processing option for LLC filings.

• An EIN is free from the IRS when obtained directly.

Ongoing annual costs

Tennessee's recurring compliance costs reuse the member-based Tennessee LLC filing fee schedule.

• Tennessee LLC annual report: Due April 1 for calendar-year LLCs under TCA § 48-249-1017(c) on the same member-based schedule, plus $20 if the report changes the registered agent or registered office.

• Tennessee franchise tax filing: 0.25% of Tennessee net worth per the Department of Revenue's rates, with a $100 annual minimum that applies whether the LLC is active or inactive while it stays registered with the Secretary of State. Public Chapter 950 repealed the alternative property measure for tax years ending on or after January 1, 2024.

• Tennessee excise tax: 6.5% of Tennessee taxable income per the Department of Revenue's published rates, filed with the department.

• Registered agent fees: $0 if a Tennessee-resident member serves; the commonly cited market range for a professional service is $100 to $300 per year.

• Local business licenses: Under Public Chapter 377 (2023), the Department's BUS-13 business license guidance sets a minimal activity license above $3,000 in gross receipts and a standard license at $100,000 or more. Each carries a $15 registration fee, and the standard license return has a $22 minimum tax.

Automate Tennessee LLC formation filings with Discern

Tennessee LLC filings are subject to the state's member-based filing fee. Organizations should verify Secretary of State registration, registered agent, and annual report costs directly before budgeting. The April 1 annual report is created ahead of the deadline with the entity's data pre-filled, so the member count that drives the fee is verified before submission. Tennessee franchise and excise tax stays with the Department of Revenue; Discern tracks those deadlines and sends notifications.

Discern also manages registered agents, annual reports, and foreign registrations from one dashboard with one invoice. Multi-state entity portfolios can benefit from consolidating registered-agent management in one system, and automation can help streamline annual report compliance and reduce the risk of missed deadlines.

See how Discern automates Tennessee compliance.

FAQs about LLC formation costs in Tennessee

These questions cover the refund, registered agent, and tax issues that come up most often when budgeting a Tennessee LLC.

Can I get a refund if my filing is rejected?

No dedicated refund policy for rejected LLC filings could be confirmed from an official Secretary of State source. The governing statute states that a document is not considered filed unless it is accompanied by the correct fee, so treat recovery as uncertain and confirm the member count before submitting.

Can I legally avoid registered agent fees in Tennessee?

Yes. Any individual who resides in Tennessee, including a member, may serve as registered agent, provided the registered office is a physical Tennessee street address and the agent keeps an office there without interruption. A paid service keeps a member's home address off the public record and gives the LLC a reliable point of receipt for legal documents.

Are there ongoing tax obligations specific to Tennessee LLCs?

Yes. Tennessee has no personal income tax, but LLCs subject to franchise and excise tax owe 0.25% of Tennessee net worth, subject to the $100 minimum, plus excise tax on Tennessee net earnings, both filed with the Department of Revenue.