Cost to Form an LLC in Tennessee (All You Need to Know)
Creating a Tennessee LLC doesn’t just entail the initial filing cost; there are other expenses you should be aware of as well. Though it may seem pricey, we’ve outlined all of your Tennessee LLC costs and also provided a basic guide on how to start your LLC in Tennessee.
Ready to start your own LLC? Let’s get going, but if you don’t know how to start your own LLC by yourself take a look at our easy step-by-step guide on how to start an LLC.
- Hire Professionals to Create a Tennessee LLC (from $0 + state fees)
- Quick Costs for Tennessee LLC Breakdown & Best Options
- Pros and Cons of Starting Your LLC in Tennessee
- How Much Does an LLC Cost in Tennessee?
- Tennessee LLC Filing Fee ($300+)
- Tennessee Annual Report Fee: $300+
- Tennessee Registered Agent Fee ($39 or $125)
- Tennessee Franchise Tax (min. $100)
- Cost to Form a Foreign LLC in Tennessee ($50 per member)
- LLC Operating Agreement Fee ($0)
- LLC EIN Number Fee ($0)
- Tennessee Business License and Permit Fees (varies)
- Limited Liability Company Taxes (varies)
- Cost of Filing Formation Certificates
- Costs Change Often. Where Can I Find the Most Up-to-date Cost & Tax Info?
- How To Start Your Own LLC in Tennessee?
- Hire Professional Help in Forming an LLC in Tennessee
Quick Costs for Tennessee LLC Breakdown & Best Options
|Who forms the LLC?
You form the LLC in Tennessee Yourself
|$600 = ($300 Articles of Organization + $300 annual fee)
|by using ZenBusiness
|$0 + state fees
|by using Northwest Registered Agent
|$39 + state fees
|see our other top-rated LLC service providers
Pros and Cons of Starting Your LLC in Tennessee
Tennessee residents considering starting their own business should consider forming a Limited Liability Company (LLC).
On the flip side, Tennessee LLCs require ongoing paperwork such as annual reports and fee payments to maintain their good standing with the state;
there may also be additional taxes associated with LLCs.
Furthermore, entrepreneurs must decide on an available name unique to Tennessee in order for registration to be approved.
All in all, Tennessee residents looking into starting an LLC need to research thoroughly as there are both pros and cons involved before launching an LLC within Tennessee’s borders.
How Much Does an LLC Cost in Tennessee?
When forming a Tennessee LLC, the $300 Articles of Organization fee must be paid to the Tennessee Secretary of State and your LLC will immediately come into existence. However, bear in mind that there are certain additional costs associated with this process – so make sure you plan accordingly!
Tennessee LLC Filing Fee ($300+)
Starting an LLC requires a minimal payment of over $300 to submit your Tennessee Articles of Organization online with the Tennessee Secretary of State.
Tennessee Annual Report Fee: $300+
The State of Tennessee requires LLCs to file an annual report with the Secretary of State before the first day of April, following their fiscal year. This form can be submitted through the official website and is priced according to each member – $50 per person, totaling a minimum fee of $300 or maximum fee of up to $3000.
Visit the Tennessee Secretary of State today for more information.
Tennessee Registered Agent Fee ($39 or $125)
Tennessee allows you to act as your own registered agent, but using a professional service can be beneficial in ensuring that all of your company’s paperwork and legal documents is up-to-date and compliant. With this type of support, critical filing deadlines are never forgotten and any late fees are avoided.
Here are our recommended Agent service providers:
- Northwest Registered Agent services is the perfect choice for those seeking to establish a new business and gain access to a registered agent, with full LLC creation package starting at only $39 + state fees
- When you only require a professional registered agent service, Northwest is the perfect solution. Their exceptional RA service comes at an unbeatable price of $125/year!
Hiring a Registered Agent service is a good idea if:
- In order to meet Tennessee law requirements, your company must have a Registered Agent with an address situated in the state. Also your agent needs to be present in the office on normal business hours.
- If you’re looking to keep your address confidential, make sure you find a company that offers the ability to use their address instead of yours. This way, your information is kept out of public records.
- Here are the 5 best Registered Agent Services for your new business.
Tennessee Franchise Tax (min. $100)
To comply with franchise tax regulations in Tennessee, LLCs must make a minimum payment of $100 and pay 0.25% of their networth or tangible property value. Additionally, any taxable income generated within the state will be subject to an excise tax rate of 6.5%.
Cost to Form a Foreign LLC in Tennessee ($50 per member)
If your company is registered with an LLC in another state, but you’re looking to grow into Tennessee, registering as a foreign LLC in the Volunteer State is essential.
Registering your Tennessee foreign LLC is a simple process with an affordable fee of $50 per LLC member, ranging from a minimum of $300 to a maximum cost of only $3,000. All you need to do is file the Application for Certificate of Authority (Form SS-4233), and you’ll be ready in no time!
LLC Operating Agreement Fee ($0)
A Tennessee LLC Operating Agreement is a legally binding contract that outlines the details of your LLC’s ownership, management and profit distribution. Whether you own a Single-Member or Multi-Member business, it’s essential to have an agreement in writing for all parties involved; make sure each Member has their own copy as well. You don’t need to spend money unnecessarily either – most websites offer customizable Operating Agreements at rates ranging from just $50-$200!
LLC EIN Number Fee ($0)
Get your Employer Identification Number (EIN) for free – without any fees! Also known as a Federal Tax Identification Number or a Federal Employer Identification Number, the EIN is necessary to file income taxes, open an LLC Business bank account and hire employees (if applicable). An easy online filing with the Internal Revenue Service website will have you up and running in no time. Get started now and obtain your free EIN number quickly.
Tennessee Business License and Permit Fees (varies)
Depending on the locality of your LLC and its industry, you might have to acquire extra Business Licenses or Permits. For instance, you may need a City Business Permit. Although fees fluctuate with area and sector, they tend not to be large in most cases. Some authorizations are regulated at the state level while others are sanctioned by an institution (towns/cities/counties).
Limited Liability Company Taxes (varies)
There are many different types of Tennessee LLC taxes that owners must pay, so this annual cost varies widely.
Some of the taxes LLC owners pay include:
- Federal taxes
- State and Local income tax
- Business taxes
- Franchise tax
- Excise Tax
- Sales and use tax
- Payroll and Property tax (if you have employees)
Every Tennessee LLC is subject to different taxes depending on the type of industry and amount of business activity, so we cannot give a precise estimate. Your individual situation will determine which taxes are applicable to your company.
Cost of Filing Formation Certificates
|Name Reservation fee
|By Mail: Fill out the application form, and send it to Corporation Division, NH Dept. of State, 107 N Main St, Rm 204, Concord, NH 03301-4989.
|By Mail: Fill out the application form, and send it to
Corporation Division, NH Dept. of State, 107 N Main St, Rm 204, Concord, NH 03301-4989.
Costs Change Often. Where Can I Find the Most Up-to-date Cost & Tax Info?
Tennessee offers a professional LLC solution at an affordable cost meaning small business owners don’t have to worry about breaking the bank. Tennessee’s department of state is always here to answer any questions small business owners, or potential small business owners, might have regarding Tennessee LLCs and their associated costs.
Whether you need information on fees and filing costs or just general questions, the Tennessee department of state website has all the answers you need. Don’t hesitate to reach out with your Tennessee LLC cost inquiries.
How To Start Your Own LLC in Tennessee?
Here are the 5 basic steps that you can take to start your own LLC in Tennessee.
Step 1: Choose a Name for Your LLC
According to Tennessee statutes, all LLC names must include the words “Limited Liability Company” or its acronymic variations – L.L.C., LLC – in order for it to be legally recognized by the state. Moreover, your new business’s name should stand apart from other businesses already listed with the Secretary of State; you can verify available names through their online database before registration is finalized.
For up to four months, you can secure the name of your Limited Liability Company by filing an Application for Reservation of LLC Name (Form SS-4228) with the Tennessee Secretary of State. All it takes is a small fee of $20—you can easily submit this request either Online or through postal mail!
Step 2: Appoint a Registered Agent
When considering what it costs to start a business in Tennessee, many LLCs include the cost of hiring a professional Registered Agent in their assessment. This way, they can delegate this time-consuming task to someone outside of the LLC’s principal office. Tennessee demands that all LLCs present an agent for service of process within the state. This is a person or business entity that agrees to receive any legal papers on behalf of the LLC if it ever faces litigation. The registered agent can be either a resident of Tennessee, or an enterprise with permission to do business in Tennessee. But this must come with one condition: they need to have a physical address situated in Tennessee itself.
Step 3: File Articles of Organization
Establishing a Tennessee LLC is as simple as filing Articles of Organization (Form ss-4270) with the Secretary of State.
Step 4: Prepare an Operating Agreement
In Tennessee, an LLC Operating Agreement is not mandatory, but is highly recommended. This internal document sets forth the rights and responsibilities of all its members and managers, including how your LLC will be handled. Not only does it safeguard your limited liability status by illustrating that you have a separate business entity – protecting yourself from any liabilities or claims against the company in case of losses- ,but also ensures that state laws are being followed for operating procedures if no agreement has been made beforehand.
Step 5: File Annual Reports
All LLCs registered in the state of Tennessee and foreign-based LLCs authorized to operate within Tennessee must annually file a report with the Secretary of State, along with a $50 filing fee per member (with no less than $300 and not more than $3,000). Reports are due every fourth month following an LLC’s fiscal year closing. If your company’s year ends June 30th for instance, you should submit your annual reports by October 1st – or April 1st if it is based on a calendar year. You can either choose to do this online or via postal mail.
Hire Professional Help in Forming an LLC in Tennessee
It can be difficult and time-consuming to form a Tennessee LLC all by yourself.
That’s why we decided to give you a few of the best options for professional services that can help you start an LLC in no time & with 0 effort!
#1 – Create an LLC in Tennessee Using Northwest Registered Agent
Northwest has vast experience in creating LLCs and Corporations. They by far have the best support and client satisfaction rate. We’ve used and tested them ourselves and can guarantee that they’ll do an exceptional job for you.
You can read our full & extensive Northwest review here.
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
#2 – ZenBusiness can help you form an LLC in Tennessee
ZenBusiness is one of our top-rated LLC services as well. They have a super value-to-price ratio. And it’s perfect for those who are looking for the cheapest option to form their LLCs. When we tested their service — they’ve done a great job, so we can honestly recommend them.
To know more about them — read our full ZenBusiness review here.
$0 + State Fees
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.