Tennessee LLC Costs & Taxes 2026: $300 to Form + $300/yr Report
Quick Answer
A Tennessee LLC costs $300 to form and $300 a year for the annual report — both fees are $50 per member with a $300 minimum and a $3,000 maximum, so any LLC with six or fewer members pays exactly $300. The annual report is due the first day of the fourth month after your fiscal year ends, which is April 1 for calendar-year LLCs. On top of the filing fees, Tennessee LLCs owe franchise tax of 0.25% of Tennessee net worth ($100 minimum) and excise tax of 6.5% of Tennessee taxable income, so a small LLC should budget roughly $400 a year even in a year with no profit.
Key Takeaways
- $300 LLC formation fee ($50/member; $300 minimum, $3,000 maximum)
- $300 annual report, due the first day of the 4th month after fiscal year-end (April 1 for calendar-year LLCs)
- No state personal income tax on wages or salaries (no W-2 wage tax)
- Franchise tax: 0.25% of Tennessee net worth, $100 minimum (property measure repealed in 2024)
- Excise tax: 6.5% of Tennessee taxable income
- No monthly late fee for annual reports — late filing leads to administrative dissolution; reinstatement costs $70 plus past-due report fees
| Item | Cost/Details | Notes |
|---|---|---|
| LLC Formation | $300 | $50/member; $300 min, $3,000 max |
| Annual Report | $300 | $50/member; due April 1 |
| Reinstatement | $70 | After administrative dissolution |
| Franchise Tax (minimum) | $100 | 0.25% of TN net worth |
| Excise Tax | 6.5% | Of TN taxable income |
| Foreign LLC Registration | $300 | $50/member; $300 min, $3,000 max |
Tennessee LLC Formation Costs
Forming an LLC in Tennessee costs $300 for the Articles of Organization (form SS-4270). Technically the fee is $50 per member, with a $300 minimum and a $3,000 maximum — so any LLC with six or fewer members pays exactly $300. A 7-member LLC would pay $350, and so on up to the $3,000 cap. This is higher than many states, but most single-member and small LLCs land at the $300 floor.
For the full picture of ongoing obligations, deadlines, and official filing links, see our Tennessee LLC compliance hub.
Additional Formation Costs
- Registered agent service: $50-$300/year (or free if you're your own agent)
- Operating agreement: Free (DIY) to $150-$500 (attorney prepared)
- EIN: Free from IRS
- Business licenses: Varies by city and business type
Cost Comparison: Tennessee's $300 formation fee is higher than Indiana ($95), North Carolina ($125), or Ohio ($99).
Annual Report Requirements
Tennessee LLCs must file an annual report with the Secretary of State each year through the TNCaB online portal.
Key Details
- Fee: $50 per member ($300 minimum, $3,000 maximum) — $300 for LLCs with six or fewer members
- Due date: The first day of the fourth month after your fiscal year ends — April 1 for calendar-year LLCs
- Filing method: Online through the Tennessee Secretary of State TNCaB portal
Tennessee's deadline is fixed to your fiscal year, so every calendar-year LLC files on the same April 1 date. Not every state works that way: Wisconsin ties the deadline to the calendar quarter your LLC was formed in, and charges only $25 for the report. If you also hold an LLC up north, our Wisconsin LLC annual report due date and $25 fee guide explains that anniversary-quarter rule in full.
What Happens If You File Late
Tennessee does not charge a per-month late fee on LLC annual reports. Instead, if you miss the April 1 deadline and the roughly 60-day grace period that follows, the Secretary of State can administratively dissolve your LLC. To get back into good standing you file an Application for Reinstatement (form SS-9410) for $70, pay any past-due annual report fees, and obtain a tax clearance from the Department of Revenue. We cover this in detail in our guide to Tennessee LLC late filing penalties, and the step-by-step filing process in the Tennessee LLC annual report guide. For due dates in every other state, see our roundup of annual report deadlines for every state.
Tennessee Franchise Tax
Tennessee franchise tax applies to LLCs doing business in the state. It is calculated on your LLC's net worth (total assets minus total liabilities) apportioned to Tennessee.
2024 change: Tennessee repealed the old alternative "property measure" of the franchise tax (the rule that taxed the greater of your TN property or net worth). For tax years ending on or after January 1, 2024, franchise tax is based on net worth only.
How It's Calculated
Franchise tax = 0.25% ($0.25 per $100) of Tennessee-apportioned net worth.
Minimum Tax
The minimum franchise tax is $100, payable as long as you are registered to do business in Tennessee — even if the LLC is inactive or the calculation would come out lower. Most small LLCs with little net worth pay only this $100 minimum.
Examples
| TN-Apportioned Net Worth | Franchise Tax (0.25%) |
|---|---|
| $0 - $40,000 | $100 (minimum) |
| $100,000 | $250 |
| $500,000 | $1,250 |
| $1,000,000 | $2,500 |
Tennessee Excise Tax
Tennessee excise tax is 6.5% of Tennessee taxable income (your LLC's net earnings from Tennessee operations). It works much like a state corporate income tax.
How It Works
- Calculated on your LLC's Tennessee taxable income
- Multi-state businesses apportion income based on TN activity
- Losses can be carried forward to offset future income
- Filed with the same return as franchise tax
Examples
| Net Earnings | Excise Tax (6.5%) |
|---|---|
| $0 | $0 |
| $50,000 | $3,250 |
| $100,000 | $6,500 |
| $250,000 | $16,250 |
Note: The excise tax is in addition to franchise tax. You may owe franchise tax even if you have no excise tax due (and vice versa).
How to File Tennessee Business Taxes
Combined Franchise & Excise Tax Return
Franchise and excise taxes are filed together using the Tennessee Franchise & Excise Tax Return.
- Form: FAE170 (the standard franchise & excise return used by LLCs, LPs, and corporations)
- Due date: 15th day of the 4th month after your fiscal year ends
- Calendar year filers: Due April 15
- Filing method: Online through Tennessee Taxpayer Access Point (TNTAP)
Must File Even If No Tax Due
Tennessee requires you to file franchise and excise tax returns even if you owe nothing. Failure to file can result in penalties.
Total Annual Cost Estimate
Here's what a typical Tennessee LLC costs annually:
| Item | Typical Cost |
|---|---|
| Annual Report | $300 |
| Franchise Tax (minimum) | $100 |
| Excise Tax (varies) | $0+ |
| Registered Agent (if using service) | $50-$150 |
| Minimum Annual Total | $400+ |
Comparison: Tennessee's roughly $400/year minimum ($300 annual report + $100 franchise tax) runs higher than many states. If lower ongoing costs matter, see how the math works in our Indiana LLC taxes & fees and North Carolina LLC taxes & fees guides, where the annual filing burden is lighter.
Frequently Asked Questions
Does Tennessee have state income tax for LLCs?
What is Tennessee franchise tax?
What is Tennessee excise tax?
When is the Tennessee LLC annual report due, and what is the fee?
Do I need to file franchise and excise tax even if I have no income?
Official Source
For the most up-to-date information, always verify requirements with the official Tennessee Secretary of State website:
https://sos.tn.gov/business-servicesImportant Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
Related Tennessee LLC Articles
Tennessee LLC Annual Report 2026
Step-by-step on the $300 annual report and April 1 deadline.
Tennessee Registered Agent Requirements 2026
Who can serve as a registered agent for your TN LLC.
Tennessee LLC Late Filing Penalties
What really happens if you miss the annual report deadline.
Nevada LLC Annual Compliance Requirements 2026
Comparing states? See the filing deadlines and fees that keep a Nevada LLC in good standing.
Nevada LLC Taxes & Annual Fees 2026
How Nevada's no-income-tax LLC costs stack up against Tennessee, from formation through renewal.
Can I Be My Own Registered Agent in Nevada?
Weighing Nevada instead? The pros, cons, and rules of serving as your own Nevada registered agent.
Wisconsin LLC Annual Report 2026: $25 Fee and Due Date
A $25 report due in your formation-anniversary quarter — the low-cost contrast to Tennessee's $300.
Complete Tennessee LLC Compliance Guide
View all Tennessee LLC requirements, fees, and deadlines in one place.
View TN State GuideOr compare Tennessee to every state on the annual report deadlines hub.