Forming an LLC in

Tennessee TN

Checked November 4, 2026 · How we score

Forming an LLC in Tennessee costs $300 to file and at least $300 a year; there is no personal income tax, but LLCs pay franchise and 6.5% excise tax.

Filing fee

$300

Articles of Organization

Annual fee

$300

per year, normalised

State income tax

top rate

Cost rank

#48

of 51, first-year fees

Tennessee LLC costs

Tennessee LLC fees
Filing fee	$300
Annual report / franchise fee	$300 Annual report: $50 per member, $300 minimum and $3,000 maximum, due April 1. Filing fee is also $300 (minimum $50 per member, $3,000 max).
First-year state fees	$600
Registered agent	Required (about $50–$300/year if you don't use your own address in the state)
Newspaper publication	No
Anonymous ownership	No
Processing time	3 days

Tennessee taxes for LLCs

Personal income tax (top)	0% No state personal income tax (the Hall tax on interest and dividends was repealed in 2021).
Corporate income tax	6.5% 6.5% excise tax on net earnings of corporations and LLCs, because Tennessee taxes LLCs as entities.
State sales tax	7%
Franchise / gross receipts	Franchise tax of 0.25% of net worth (minimum $100) plus 6.5% excise tax on net earnings, paid by LLCs and other limited-liability entities. Franchise tax property measure was repealed for tax years ending on or after January 1, 2024.

A single-member LLC is a disregarded entity: profit flows to the owner's personal return. Federal income tax applies in every state. Non-US owners without US-source business income generally owe no US income tax but must file Form 5472 with a pro-forma 1120 each year.

Pros and cons

Why form in Tennessee

No personal income tax
Series LLCs allowed
Business-friendly environment in Nashville

Watch out for

$300 filing and $300 annual report plus franchise and excise taxes
LLCs pay corporate-style excise tax on profits

Best for: Tennessee-based businesses that want no personal income tax · Series LLC use cases

Tennessee LLC: common questions

How much does an LLC cost in Tennessee?

Filing the Articles of Organization in Tennessee costs $300. After that, expect a $300 minimum annual report fee. Annual report: $50 per member, $300 minimum and $3,000 maximum, due April 1. Filing fee is also $300 (minimum $50 per member, $3,000 max). A commercial registered agent, if you need one, is typically $50–$300 a year extra.

Do I need a registered agent in Tennessee?

Yes. Tennessee requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.

Can a non-US resident form an LLC in Tennessee?

Yes. Tennessee does not require US citizenship, residency or an SSN to own an LLC; you need a Tennessee registered agent address and then an EIN from the IRS (by fax or mail with Form SS-4 if you have no SSN). A foreign-owned single-member LLC must also file Form 5472 with the IRS every year, even with no US income. Check what Tennessee publishes, since member or manager names may appear in public filings.

Does Tennessee have a state income tax?

No personal income tax on wages. No state personal income tax (the Hall tax on interest and dividends was repealed in 2021). Corporate: 6.5% excise tax on net earnings of corporations and LLCs, because Tennessee taxes LLCs as entities.

Does Tennessee tax LLCs even with no income tax?

Yes. Tennessee levies a 6.5% excise tax on LLC net earnings and a 0.25% franchise tax on net worth (minimum $100). It is a no-wage-income-tax state, but not a no-tax state for businesses.

Sources

Tennessee Secretary of State business filings

Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.