Tennessee LLC vs Mississippi LLC (2026)
Compare Tennessee LLC vs Mississippi LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: August 4, 2026
Verdict: Tennessee wins for most businesses
For most Tennessee-based businesses, forming locally in Tennessee is the smarter choice. You avoid paying fees in two states and managing compliance in both. Mississippi only makes sense if your business genuinely operates there, and even then the total costs deserve a hard look.
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| Factor | Tennessee | Mississippi |
|---|---|---|
| Filing Fee | $300 | $50 |
| Processing Time | Not published by the state | Same day (online) |
| Annual Report Fee | $300 | $0 |
| Annual Report Due | April 1 | April 15 |
| State Income Tax | No | Yes |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $300 + registered agent ~$150/yr |
Full fee breakdown for either state: Tennessee LLC cost and Mississippi LLC cost.
Business Climate: Tennessee vs Mississippi
| Factor | Tennessee | Mississippi |
|---|---|---|
| 5-year business survival rate | 46.4% (#45 of 51) | 53.5% (#15 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +19.9% YoY (#16 of 51 by volume) | +29.5% YoY (#32 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Tennessee vs Mississippi
Tennessee
Mississippi
Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where a state requires publication, and any one-time registration charge a state requires before the LLC may trade. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Montana's annual report is free when filed by April 15 and $35 after, a waiver the Secretary of State applies at its discretion. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Tennessee charges $300 to form an LLC, while Mississippi charges $50. Mississippi is $250 cheaper upfront. The cost that usually gets overlooked: if you form in Mississippi but operate in Tennessee, you must also register as a foreign LLC in Tennessee (a $300 filing) and maintain a registered agent in Mississippi (typically around $150 per year). That puts the realistic first-year cost of the Mississippi route at roughly $500, versus $300 for simply forming in Tennessee. Only one side of this comparison is knowable: Mississippi publishes same day (online), while Tennessee publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: Tennessee vs Mississippi
Tennessee has no personal income tax, while Mississippi taxes individual income. Since pass-through LLC profits are taxed where you live and operate, a Tennessee-based owner keeps Tennessee's no-income-tax benefit either way. Forming in Mississippi adds no tax advantage. Mississippi taxes individual income at a flat 4.0% on taxable income over $10,000 for tax year 2026 (down from 4.4% in 2025); the 2025 'Build Up Mississippi Act' (HB 1) schedules further phase-down toward eventual elimination, subject to revenue triggers. Tennessee imposes a franchise & excise tax on LLCs: $100 minimum franchise tax plus 6.5% excise tax on net earnings. No franchise or privilege tax on LLCs (Mississippi's franchise tax applies to corporations and is being phased out); note the foreign LLC annual report carries a $250 fee while the domestic LLC annual report is $0.
Privacy & Asset Protection
Neither Tennessee nor Mississippi offers anonymous LLC formation: both states require owner or manager information on public filings. The Certificate of Formation doesn't list members, but the mandatory annual report under Miss. Code § 79-29-215 requires the names and business addresses of managers (if manager-managed) or the name and address of at least one member (if member-managed), plus principal officers if any. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Tennessee LLCs file an annual report ($300, due April 1), and Mississippi LLCs file a free annual report (due April 15). If you form in Mississippi while operating in Tennessee, you maintain filings in both states, Mississippi's report plus Tennessee's equivalent for your foreign registration, and pay a Mississippi registered agent roughly $150 per year. That brings ongoing costs of the Mississippi route to roughly $450 per year, versus about $300 to keep a domestic Tennessee LLC in good standing. There are also recurring state taxes to weigh on each side. Tennessee imposes a franchise & excise tax on LLCs: $100 minimum franchise tax plus 6.5% excise tax on net earnings. No franchise or privilege tax on LLCs (Mississippi's franchise tax applies to corporations and is being phased out); note the foreign LLC annual report carries a $250 fee while the domestic LLC annual report is $0.
When Mississippi Actually Makes Sense
Forming in Mississippi makes sense in a few specific situations: your business genuinely operates in Mississippi, with a real office, employees, or property there, or you're relocating to Mississippi in the near future and accept taking on Mississippi's personal income tax, which Tennessee doesn't levy. For a typical small business based in Tennessee, none of these usually apply. Registering a Mississippi LLC to do business back home means $300 in Tennessee foreign-registration fees, on top of Mississippi's $50 formation fee, while Tennessee's own annual report runs $300 a year and is due April 1. When in doubt, form where you actually do business.
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