How Much Does an LLC Cost in Tennessee

It costs at least $300 to form an LLC in Tennessee. But these additional expenses could increase the total to over $3,000.

In 2023, Tennessee's economy surged with a remarkable 5.2% annual GDP growth rate.^[1] This thriving business scene suggests forming an LLC in the Volunteer State could be a good idea.

The question is, how much for an LLC in Tennessee? Read on to see how much it will cost you.

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Tennessee Domestic LLC Formation Fee

Cost: $300 to $3,000^[2]

To form an LLC in Tennessee, you must submit the Articles of Organization to the Secretary of State. Once the documents are approved, your LLC will be recognized as legally separate from you.

The minimum filing fee is $300. If your LLC has more than six members, you must pay $50 per additional member. The maximum is $3,000.

A Tennessee LLC's Articles of Organization contain the following information:^[2]

• Limited Liability Company Name
  
• Business address
  
• Registered agent name and address
  
• The last month of the LLC's fiscal year
  
• Management structure (member or manager-managed)

You can submit the Articles of Organization online, by mail, or in person. Cash payment is only available for in-person filings.

Tennessee Foreign LLC Formation Fee

Cost: $300 to $3,000^[3]

If your LLC is already established in a different state and you want to expand your business to Tennessee, you need to register it as a foreign LLC.

Foreign LLCs in Tennessee must submit a Foreign Certificate of Authority to the Secretary of State with the $300 filing fee. If your LLC has more than six members, you must pay $50 per additional member. The maximum fee is $3,000.^[3]

You must register an assumed name if your foreign LLC's original name is unavailable in Tennessee. This becomes your LLC's official business name only in Tennessee.

Tennessee LLC Annual Report Fee

Cost: At least $300^[4]

Tennessee LLCs must submit annual reports to the Secretary of State each year. It shows any changes to the LLC's address, registered agent, and other details. Once submitted, your LLC is considered in good standing.

The annual report fee varies depending on the number of LLC members. There's a $300 minimum fee, but it increases by $50 per additional member over six members.^[4]

There's an additional $20 fee if your registered agent's name or address changes. So for a seven-member LLC with a new registered agent, the annual report fee is $370.

Annual reports are due on the first day of the fourth month following the LLC's fiscal year closing. If your LLC's fiscal year ends in April, its annual report is due August 1st. It can be filed online, by mail, or in person.

Tennessee LLC Permits and License Fees

Cost: At least $15 each year^[5]

Most businesses in Tennessee must apply for a state business license. It's issued by the county office where your LLC is located. It takes up to 10 business days to get the permit after you pay the $15 fee.^[6]

The type of license you need is based on the LLC's gross sales:^[5]

• No license: Under $3,000 in gross sales

• Minimal activity license: For gross receipts of more than $3,000 but less than $100,000

• Standard business license: For gross receipts 100,000 or more

Additionally, your LLC may need to get local business permits. If your LLC does business in two cities, you may need to get a separate license for each city. Local business permit fees vary per city and could be renewable yearly.

Tennessee LLC Taxes

Cost: At least $100 each year^[7]

Tennessee doesn't have a state income tax. However, there's a mandatory franchise tax each year. It's 0.25% of your LLC's net worth or real tangible property in Tennessee, whichever is greater. The minimum tax is $100.

The franchise tax is due each year by the 15th day of the fourth month following the LLC's fiscal year-end. If your LLC's fiscal year ends in April, its annual report is due August 15th.

You must also pay the excise tax, which is 6.5% of the LLC's taxable income in the state.^[7] Then, self-employed LLC members must pay federal income taxes:^[8]

Self-employed LLC members must also pay the 15.3% federal self-employment tax.^[9] This tax covers Social Security and Medicare contributions.

Tennessee LLC Optional Fees

While the Tennessee LLC fees below are optional, some are unavoidable depending on your business needs. For example, obtaining a Certificate of Existence is often necessary when opening a business bank account.

Tennessee LLC Registered Agent Fee

Cost: $0 to $400

A registered agent is responsible for receiving business and legal documents on behalf of your LLC. This includes government notices, tax forms, and annual reporting forms.

You can be the LLC's registered agent as long as you're at least 18 years old and have a physical street address in Tennessee. You must be available to receive documents during regular business hours.

Alternatively, you could hire a registered agent service to avoid putting personal details on the public record.

Tennessee LLC Change of Registered Agent Fee

Cost: $20^[11]

An LLC can change its registered agent's details anytime. If this happens, you must submit a Statement of Change to the Secretary of State immediately. Changes include the registered agent's name and address.

There's a different form for registered agents who want to resign from the role. It also costs $20.^[12]

Tennessee LLC Operating Agreement Fee

Cost: Up to $500+

LLCs in Tennessee are not required to have an operating agreement. However, having one is recommended because it defines important rules and regulations that all members and managers must follow.

An LLC operating agreement contains the following:

• The roles and responsibilities of each member
  
• How new or departing members will be treated
  
• How business profits and losses will be divided

Ideally, you must already have a signed Operating Agreement before forming an LLC in Tennessee. But if your LLC is already formed, you can always make one.

An LLC attorney might charge you a $500 flat fee for a standard operating agreement, or higher for more complex details.

Employer Identification Number

Cost: Free

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service. This number is used to identify a business entity for tax-related purposes.

You're not required to get an EIN if you're operating a single-member LLC in Tennessee. However, you might still need it down the line if you want to hire employees or open a business bank account.

Tennessee LLC Name Reservation Fee

Cost: $20^[13]

If you've already got a business name but aren't ready to form an LLC, you can reserve your desired name first. It will prevent others from using that name for 120 days.^[13]

Unlike other states, you can use a name already being used by an active business. Just fill out the Application for Use of Indistinguishable Name and pay an additional $20 fee.^[14]

Remember to review Tennessee's detailed list of naming regulations to prevent your reservation from being rejected. For instance, an LLC name must include LLC, Ltd., or a similar abbreviation.

Tennessee LLC Assumed Name Fee

Cost: $20^[15]

An assumed name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.

Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name without "LLC" at the end.

Assumed names in Tennessee must be renewed every five years for the same price.^[16]

Tennessee LLC Articles of Correction Fee

Cost: $20^[17]

After your Tennessee LLC application is approved, review all the details of the Articles of Organization carefully.

If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Articles of Correction.

Tennessee LLC Articles of Amendment Fee

Cost: $20^[19]

Your Tennessee LLC's Articles of Organization contains specific details about your business. Should these details change, you must submit the Articles of Amendment to the Secretary of State.

File the Articles of Amendment if you:^[19]

• Modify the LLC name
  
• Appoint a new registered agent
  
• Change principal address

There's a separate form for changes to the mailing address. You can file this with the Secretary of State for free.^[20]

Tennessee LLC Certified Copy Fee

Cost: $20 per set of copies^[21]

Certified copies of documents verify that your LLC is legitimate and that its details are accurate.

You might need these for circumstances like opening a business bank account or expanding your LLC in another state.

Additionally, some LLCs keep certified copies of their initial Articles of Organization and Articles of Amendment (if any) for recordkeeping purposes.

Tennessee LLC Certificate of Existence Fee

Cost: $20^[23]

A Certificate of Existence, also known as a Certificate of Good Standing, is an official document by the Tennessee Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its state fees and taxes.

You might need a Certificate of Existence to:

• Open a bank account
  
• Apply for business loans
  
• Qualify for business insurance
  
• Conduct business as a foreign LLC

Business Website Domain Fee

Cost: $20 to $30

A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you aren't planning to build a business website now, it's a good idea to at least buy the domain name. This prevents others from using your LLC's name as a web address.

Business Insurance Premiums

Cost: Varies

In Tennessee, most businesses with five or more employees must have workers' compensation insurance.^[24] Exemptions to this rule include construction companies. They must have workers' compensation insurance regardless of the number of employees.

Tennessee does not have a state-funded workers' compensation insurance program. Self-insure or get from a private company. The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.

You might also be required to get other types of insurance:

• General liability insurance
  
• Commercial property insurance
  
• Professional liability insurance
  
• Cyber liability insurance

Bottom Line

In summary, the Articles of Organization fee costs at least $300 in Tennessee. There's an additional $50 per additional member for LLCs with more than six members.

The annual report is filed yearly, with a minimum $300 filing fee. Other annual expenses include the $15 business license and $100 (or more) franchise tax.

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• Lifetime compliance alerts
• Comprehensive name check
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The total cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.

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