Tennessee LLC Costs (Mar. 2026) – Detailed Breakdown

Forming an LLC in Tennessee comes with a few required and optional costs that every business owner should understand upfront. The core Tennessee LLC cost is $300 to file the Articles of Organization with the Tennessee Secretary of State, which officially creates your Limited Liability Company.

If you are asking how much does an LLC cost in Tennessee or how much does it cost to get an LLC in Tennessee, that $300 filing fee is the minimum required to get started. However, the total costs to start an LLC in Tennessee can increase depending on your business activity, revenue, and whether you choose additional services.

Beyond formation, some LLCs must pay a $15 state business tax account registration and renewal fee once annual gross receipts exceed $3,000. Ongoing expenses may also include the Annual Report fee, which ranges from $300 to $3,000, and optional costs such as Registered Agent services, typically priced between $0 and $199 per year.

Below is a clear breakdown of the main Tennessee LLC costs to expect when starting and maintaining your business.

A Breakdown Of The Main Tennessee LLC Costs

1. Choosing A Compliant Tennessee LLC Name ($0)

You do NOT need to reserve your desired LLC name before filing your Articles of Organization in Tennessee. Therefore, there is NO state fee associated with this formation step.

However, your desired LLC name must be unique and distinguishable from existing state business names. Therefore, I suggest using the Tennessee Business Entity Search tool to confirm your LLC name availability. After that, your LLC name must also comply with Tennessee’s naming rules.

Read my guide here: Tennessee Business Name Search.

2. Selecting A Tennessee Registered Agent ($0–$199 Annually)

After choosing an appropriate LLC name, you must select a suitable Tennessee Registered Agent. Every LLC operating in the state must appoint and maintain a Tennessee Registered Agent to receive and process official state correspondence. This is set under the Tenn. Code Ann. § 48-208-10.

When choosing your Tennessee Registered Agent, you have three different options. The cost depends on the Registered Agent that you select:

1. Yourself.
2. A trusted friend or a family member.
3. A professional third-party Registered Agent service.

If you wish to appoint yourself or a trusted individual as your agent, there is NO fee. However, while you may save money, this option comes with several potential disadvantages:

• Your Registered Agent’s name and address become part of the public record. If you appoint yourself, you risk having your personal details exposed.
• Your agent must be available during normal business hours. You increase the chance of missing important legal documents if you use an individual. This can lead to potential penalties and administrative issues.

Because of these reasons, I highly recommend appointing a professional third-party Registered Agent service. These typically cost between $150 and $199 per year.

Read my guide for a detailed comparison: Best Registered Agent Services In Tennessee.

3. Filing Your Tennessee Articles Of Organization ($300–$3,000)

Every business operating in the state must file its Articles of Organization and have them approved by the Secretary of State before they’re officially recognized and formed as an LLC, making this one of the primary costs to start an LLC in Tennessee. This is set under the Tenn. Code Ann. § 48-205-101.

Your total Articles of Organization filing cost depends on the number of members in your LLC at the time of completing your filing.

• LLCs with 1 to 6 members: These pay a flat $300 filing fee.
• LLCs with more than 6 members: These pay the flat $300 filing fee + $50 for each additional member. This applies until your total reaches $3,000.

Example: An LLC with 10 members pays: $500 = $300 + $50 + $50 + $50 + $50.

Check out my article on the Tennessee Articles Of Organization to learn more about how to file your formation documents online or by mail.

4. Completing Your LLC’s Internal Operating Agreement ($0)

A Tennessee LLC Operating Agreement is a crucial internal document that outlines your business ownership structure, operational rules, and management framework. It also governs how your LLC will be operated and managed daily.

As an internal business document, you do NOT need to file it with the Secretary of State or any other official agency. However, you should ensure that you keep it with your official business records and that all LLC members have a physically signed copy.

Your Operating Agreement should clearly state how your LLC will be managed. You have two main choices for this section:

1. Member-managed: All LLC members are involved in decision-making procedures and daily operations. This is well-suited to small businesses.
2. Manager-managed: LLC members appoint one or more managers to run the business and make the key decisions. Other members take a passive investor role.

You can use one of my handy templates linked below if you want to draft your Operating Agreement yourself for free. Also, read my guidance on the Tennessee LLC Operating Agreement to learn more about what to include.

5. Acquiring Your Tennessee EIN ($0)

You need to get an EIN from the Internal Revenue Service (IRS) when operating your Tennessee LLC. It’s needed to complete essential business tasks such as hiring employees, opening a business bank account, and filing your required tax forms.

If you complete your filing through the official IRS website, your application is completely free regardless of your chosen filing method.

Only apply for your EIN once your Tennessee LLC has been officially approved by the state. The IRS requires you to be an “Existing legal entity” before issuing you an EIN.

You can review my article for further details regarding this: How To Get An EIN For Your Tennessee LLC.

You have two main ways to obtain your EIN, depending on your U.S. residency status:

6. Getting Your Applicable Business Licenses And Permits (Varies)

I recommend confirming your specific requirements and associated fees with your local city or county clerk and the necessary state regulatory authority.

Some LLCs operating in the state require NO licenses or permits, taking their total licensing cost to $0.

You can read my detailed breakdown of the different licensing requirements here: Tennessee Business License Requirements And Permits.

7. Business Tax Registration (Varies)

Generally speaking, most Tennessee LLCs must use the Tennessee Taxpayer Access Point (TNTAP) portal to complete their business tax registration process.

Your tax filing obligations depend on your LLC’s gross earnings. However, all LLCs must register and complete the classification questions in the TNTAP portal, even if they don’t owe tax. Your LLC will be given either license once you’ve completed your registration, depending on your gross earnings:

• Minimal activity license: This applies to businesses earning between $3,000 and $99,999 in gross revenue.
• Standard business license: This applies to businesses with a gross revenue of $100,000 or more.

The renewal fee for your Tennessee business tax license depends on your LLC’s gross receipts:

• Minimal activity license: Renew your license with your city or county clerk. You must pay a $15 renewal fee for each business location.
• Business tax standard licenses: Renew your license by filing and paying your business tax return with the Tennessee Department of Revenue. You do NOT need to pay any other fees.

I’ve written a comprehensive guide on the Tennessee Business Tax Registration if you want to learn more.

8. Obtaining Your Sales & Use Tax License ($0)

You must register for Sales & Use Tax if your LLC sells, leases, rents tangible goods, or provides taxable services in the state.

Use the TNTAP system to register for free. You can complete your license application while finishing your business tax registration. Log in and add this tax type if you already have an online tax account.

Your Tennessee Sales Tax rate varies depending on your operating location. This is because it is a combination of:

• State tax: 7%.
• Local tax: Varies by county or city.

My Tennessee Sales And Use Tax guide discussed your main requirements and how to register.

9. Filing Your Tennessee LLC Annual Report ($300–$3,000 Per Year)

Under the Tenn. Code Ann. § 48-249-1017, all Tennessee LLCs must file an Annual Report to maintain their good standing when operating in the state.

Your Annual Report must be filed online using the Tennessee Secretary of State’s TNCaB system. The filing cost is based on the number of LLC members at the time of completing your filing.

It works the same way as your Tennessee Articles of Organization filing fee:

• LLCs with 1 to 6 members pay a flat $300 Annual Report fee.
• LLCs with more than 6 members pay $300 + $50 for each additional member. This goes up to a maximum of $3,000.

Examples:

• An LLC with 7 members pays $350 = $300 + $50.
• An LLC with 10 members pays $500 = $300 + $50 + $50 + $50 + $50.

Read my full guide on the Annual Report here: Tennessee Annual Report.

10. Managing Your Tennessee LLC Tax Responsibilities (Varies)

Once you’ve registered with the Tennessee Department of Revenue, your LLC must meet its ongoing tax obligation, depending on your business location and activities.

a. Federal Taxes

Your Tennessee LLC may be subject to several types of tax at the federal level:

• Federal income tax: Based on your LLC’s tax treatment.
• Payroll taxes: Apply to members who participate in running the business.
• Self-employment taxes: You must pay this tax if your LLC has employees.

b. Tennessee State Taxes

You may also owe Tennessee taxes at the state level, depending on your business earnings and activity:

• Sales and Use Tax: This applies if your LLC sells taxable services or goods.
• State business tax: Applies to Tennessee LLCs that earn $100,000 or more in gross receipts.
• Other state taxes: These apply to regulated business activities and specific industries.

c. Local Taxes

Alongside your federal and state taxes, your LLC may also need to pay local taxes. These are imposed by cities or counties:

• Local income taxes: Based on your local rules and business income in the state.
• Property taxes: Required if your LLC owns real estate or tangible personal property in Tennessee.

Tennessee LLC Owner Important Government Contacts

These state agencies can be contacted if you need help when forming and operating your Tennessee LLC. They’ll assist you in obtaining accurate information, resolving issues, and preventing costly delays.

1. The Tennessee Secretary Of State’s Office

The main agency responsible for your LLC formation process, business filings, record maintenance, and compliance measures is the Tennessee Secretary of State. These are their main contact details:

• Physical address: 312 Rosa L. Parks Avenue, Nashville, TN 37243-1102
• Operating hours: Monday to Friday, 8:00 A.M. to 4:30 P.M. (CST)
• General phone: (615) 741-2819
• Business filings and information: (615) 741-2286
• Business services email: [email protected]
• Official website: sos.tn.gov

2. The Tennessee Department Of Revenue

The Tennessee Department of Revenue manages business tax registration, the Sales and Use Tax, and other state tax obligations. Use the contact details provided below if you require additional help:

• Statewide toll-free: (800) 342-1003
• Nashville area and out-of-state: (615) 253-0600
• Email: [email protected]

The Tennessee Department of Revenue’s operating hours are Monday to Friday, 8:00 A.M. to 4:30 P.M. (Local time). They’re closed on weekends and state holidays.

Frequently Asked Questions