Is it cheaper to form an LLC in Tennessee than Washington?

No. Tennessee costs more upfront ($300 vs $180), and if you operate in Washington you must also register there as a foreign LLC ($200) plus pay a Tennessee registered agent. Realistic first-year cost is roughly $650 versus $180 for forming locally.

Can I form my Washington business in Tennessee?

Yes. Any Washington business can form its LLC in Tennessee. But if the business operates in Washington, it must also register there as a foreign LLC ($200 filing fee) and maintain a registered agent in Tennessee, so you take on two states' fees and filings instead of one.

Does Tennessee have better asset protection than Washington?

Not meaningfully. Both states provide charging-order protection for LLC members, and neither offers a decisive asset-protection edge for a typical small business. Sound insurance and clean separation of business and personal finances matter more in practice.

State Comparison

Washington LLC vs Tennessee LLC (2026)

Compare Washington LLC vs Tennessee 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

For most businesses, forming an LLC in Washington beats Tennessee. Washington runs $270 in year one and $70/yr after; Tennessee runs $700 and $400/yr. See the full breakdown below.

Verdict: Washington wins for most businesses

For most Washington-based businesses, forming locally in Washington is the smarter choice. You avoid paying fees in two states and managing compliance in both. Tennessee only makes sense if your business genuinely operates there, and even then the total costs deserve a hard look.

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Factor	Washington	Tennessee
Filing Fee	$180	$300
Processing Time	Within 15 business days (paper)	Not published by the state
Annual Report Fee	$70	$300
Annual Report Due	Last day of anniversary month	April 1
State Income Tax	No	No
Anonymous LLC	No	No
Publication Requirement	No	No
Foreign LLC Cost (if forming out-of-state)	N/A, you're in your home state	$200 + registered agent ~$150/yr

Full fee breakdown for either state: Washington LLC cost and Tennessee LLC cost.

Business Climate: Washington vs Tennessee

Factor	Washington	Tennessee
5-year business survival rate	42.2% (#51 of 51)	46.4% (#45 of 51)
Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months))	-25.5% YoY (#15 of 51 by volume)	+19.9% YoY (#16 of 51 by volume)

Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)

See the full 50-state survival ranking.

Compare LLC Costs: Washington vs Tennessee

State A

State B

Washington

✓ Cheaper Upfront✓ Cheaper Long-Term

Formation fee$200

Annual report fee$70

State entity taxNone

Report dueLast day of anniversary month

Processing timeWithin 15 business days (paper)

Late penalty$25

Tennessee

Formation fee$300

Annual report fee$300

State entity tax$100/yr, Franchise and Excise Tax

Report dueApril 1

Processing timeNot published by the state

Late penalty$0

Total Cost

Washington

Tennessee

1 Year

$270

$700

3 Years

$410

$1,500

5 Years

$550

$2,300

Will you operate outside your home state?

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

Washington charges $180 to form an LLC, while Tennessee charges $300. Washington is $120 cheaper upfront. The cost that usually gets overlooked: if you form in Tennessee but operate in Washington, you must also register as a foreign LLC in Washington (a $200 filing) and maintain a registered agent in Tennessee (typically around $150 per year). That puts the realistic first-year cost of the Tennessee route at roughly $650, versus $180 for simply forming in Washington. Only one side of this comparison is knowable: Washington publishes within 15 business days (paper), while Tennessee publishes no standard processing time, so the two can't be ranked against each other on speed.

Taxes: Washington vs Tennessee

Neither Washington nor Tennessee levies a personal income tax, so there's no income-tax advantage to forming in either state. Washington imposes the Business & Occupation (B&O) tax on gross receipts. Tennessee imposes a franchise & excise tax on LLCs: $100 minimum franchise tax plus 6.5% excise tax on net earnings.

Privacy & Asset Protection

Neither Washington nor Tennessee offers anonymous LLC formation: both states require owner or manager information on public filings. Tennessee's annual report (a per-member filing) discloses the LLC's members/managers. 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

Washington LLCs file an annual report ($70, due in the anniversary month), and Tennessee LLCs file an annual report ($300, due April 1). If you form in Tennessee while operating in Washington, you maintain filings in both states, Tennessee's report plus Washington's equivalent for your foreign registration, and pay a Tennessee registered agent roughly $150 per year. That brings ongoing costs of the Tennessee route to roughly $520 per year, versus about $70 to keep a domestic Washington LLC in good standing. There are also recurring state taxes to weigh on each side. Washington imposes the Business & Occupation (B&O) tax on gross receipts. Tennessee imposes a franchise & excise tax on LLCs: $100 minimum franchise tax plus 6.5% excise tax on net earnings.

When Tennessee Actually Makes Sense

Forming in Tennessee makes sense in a few specific situations: your business genuinely operates in Tennessee, with a real office, employees, or property there, or you're relocating to Tennessee in the near future. For a typical small business based in Washington, none of these usually apply. Registering a Tennessee LLC to do business back home means $200 in Washington foreign-registration fees, on top of Tennessee's $300 formation fee, while Washington's own annual report runs $70 a year and is due in the anniversary month. When in doubt, form where you actually do business.

Frequently Asked Questions

: No. Tennessee costs more upfront ($300 vs $180), and if you operate in Washington you must also register there as a foreign LLC ($200) plus pay a Tennessee registered agent. Realistic first-year cost is roughly $650 versus $180 for forming locally.
: Yes. Any Washington business can form its LLC in Tennessee. But if the business operates in Washington, it must also register there as a foreign LLC ($200 filing fee) and maintain a registered agent in Tennessee, so you take on two states' fees and filings instead of one.
: Not meaningfully. Both states provide charging-order protection for LLC members, and neither offers a decisive asset-protection edge for a typical small business. Sound insurance and clean separation of business and personal finances matter more in practice.
: Washington, for most. Forming where you operate keeps costs and compliance simple. Tennessee is worth considering only if you actually do business there or have investor requirements that point there.
: Only one side of this comparison is knowable: Washington publishes within 15 business days (paper), while Tennessee publishes no standard processing time, so the two can't be ranked against each other on speed. Only 19 of the 50 states publish anything about non-expedited turnaround at all. Whichever you pick, remember that forming in Tennessee while operating in Washington means you're not fully set up until the Washington foreign registration is also processed, so the out-of-state route is rarely the faster path end to end. If your timing is genuinely fixed, buy the state's expedite tier rather than relying on a standard turnaround.

Comparison chart of forming an LLC in Washington versus Tennessee, contrasting filing fees, annual report cost and ongoing obligations across 8 factors. On balance this guide favours Washington. — Washington and Tennessee side by side on the factors that decide where to form. Source: MyStateLLC 50-state cost dataset, verified against each Secretary of State's published fee schedule, July 2026.

More State Comparisons

Washington vs Texas →Washington vs Utah →Washington vs Vermont →Washington vs Delaware →Tennessee vs Delaware →

Washington LLC Guide →Tennessee LLC Guide →

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<p style="text-align:center;font-size:.8125rem;color:#6b7280">Source: <a href="https://www.mystatellc.com/llc/compare/washington-llc-vs-tennessee-llc">MyStateLLC, Washington vs Tennessee LLC Comparison</a></p>