State Guide · TN

Tennessee LLC Guide (2026)

Everything you need to form and maintain an LLC in Tennessee, state-specific fees, deadlines, and step-by-step instructions.

By Edmond Hui · Last updated: August 25, 2026

This hub indexes all Tennessee LLC guides in one place, formation, compliance, registered agents, and business structure comparisons. Quick reference: state filing fee $300, standard processing not published by the state, annual report due April 1. For the complete step-by-step formation walkthrough, see the Full Formation Guide below.

Key LLC facts for Tennessee: $700 minimum first-year cost, $400 each year after, an annual state report, and no personal income tax.
First-year cost is the unavoidable minimum to form and stay compliant; the second figure is what recurs annually. Source: Tennessee's published filing fee schedule, verified July 2026, with anonymity and income-tax status from MyStateLLC's 50-state datasets.
Filing fee$300#22 cheapest of 50 states
ProcessingNot publishedTennessee publishes no standard turnaround
Annual reportApril 1

What Are the Mandatory Costs for a Tennessee LLC?

Recurring State ChargeFranchise and Excise Tax: $100/year minimum

A Tennessee LLC owes the Franchise and Excise Tax, a minimum of $100 a year, separate from the $300 filing fee. That brings Tennessee's minimum first-year state cost to $700. Budget for it as a recurring annual obligation before forming.

Excise tax is 6.5% of Tennessee taxable income and franchise tax is 0.25% of Tennessee net worth. The Department of Revenue states the franchise tax minimum is $100, "payable if the LLC is registered with the Secretary of State, whether active or inactive." The return is due the 15th day of the fourth month following the close of the books (April 15 for calendar-year filers), with a seven-month extension available.

Key Finding

71,025 new business applications were filed in Tennessee in the 2026 YTD (Jan to Jul) vs 2025 YTD (same months) window, up 19.9% year over year

Tennessee ranks #16 of 51 jurisdictions by application volume and #28 per capita. For scale, the state counted 150,129 active business establishments as of 2023 (Census County Business Patterns). This monthly BFS series is a leading indicator of formation activity, ahead of the Census's annual establishment counts.

Source: U.S. Census Bureau, Business Formation Statistics (BFS), Jul 2026

Tennessee Small Business Landscape

Small businesses in Tennessee741,196 (99.5% of all Tennessee businesses)
Small business employment1,182,437 workers (41.5% of private-sector employment)

Source: SBA Office of Advocacy, 2025 Small Business Profile

Tennessee Business Survival

5-year survival rate46.4% of new Tennessee businesses survive five years, #45 of 51 nationally

Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics

See how Tennessee’s 5-year survival rate compares nationally in our full state-by-state ranking.

Enterprise LLCs Formed in Tennessee

Entity NameWhy They Chose Tennessee
FedEx Ground Package System LLCTennessee's home-state formation gives Memphis-headquartered FedEx a consolidated structure for its ground parcel operating subsidiaries, Tennessee's no-personal-income-tax policy and its central US logistics position make in-state LLC formation the natural choice for large-scale package delivery networks.

Why Tennessee attracts enterprise LLCs: Tennessee eliminated its personal income tax in 2021, joining only six other states with no income tax. Combined with low business formation costs ($300 for LLCs), Nashville's growing tech hub, and strong logistics infrastructure, it is increasingly popular for technology startups and distribution holding entities.

Entity examples are illustrative and based on publicly available corporate registrations. Reasons reflect general state-level legal and tax advantages, not verified statements of each company's formation rationale. For educational purposes only; consult a licensed attorney before making formation decisions.

Check your business name

See if your domain and social handles are available before you file.

How Do You Start an LLC in Tennessee?

Filing in Tennessee costs $300 in state fees. Tennessee publishes no standard processing time, so plan around the filing itself rather than a promised turnaround. You'll file Articles of Organization, appoint a registered agent, and complete any state-specific requirements before opening for business.

That is the filing fee alone. For the first-year and five-year totals, see Tennessee LLC cost.

Full Formation Guide for TennesseeExact forms, fees & filing instructions

What Are the Ongoing Requirements for a Tennessee LLC?

Tennessee LLCs must file an annual report due April 1 and keep a registered agent on file year-round. Missing deadlines triggers late fees and risks administrative dissolution.

Full Compliance OverviewAnnual report, fees & deadlinesAnnual Report GuideDue dates, forms & filing steps

How Do You Register a Foreign LLC in Tennessee?

If your LLC was formed in another state (Delaware, Wyoming, etc.) but conducts business in Tennessee, you must register as a foreign LLC. This requires a separate filing fee and a registered agent in Tennessee.

Tennessee Foreign LLC Registration GuideForms, fees & registered agent requirements

Does a Tennessee LLC Need a Registered Agent?

Other Tennessee LLC Compliance & Tax Guides

How Does a Tennessee LLC Compare to Other Structures?

Tennessee LLC Operating Agreement Templates

Tennessee LLC Guides by Industry

How Do You Dissolve an LLC in Tennessee?

Does Tennessee Waive LLC Fees for Veterans?

What Does Moving a Rental Into an LLC Cost in Tennessee?

Do You Need an LLC to Sell on eBay in Tennessee?

How Does Tennessee Compare to Other States for LLC Formation?

Side-by-side breakdowns of filing fees, annual costs, taxes and privacy rules, each written for a business owner already operating in Tennessee.

Compare from a different home state →

More Tennessee LLC Resources

Best Bank AccountsBest business bank accounts for a Tennessee LLC →Grants & IncentivesSmall business grants & incentives in Tennessee →Anonymous LLCHow to form an anonymous LLC in Tennessee →
Edmond Hui

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.

Compare Tennessee with Other States

Texas LLC guideFiling fee $300 · See costs and requirements →Alaska LLC guideFiling fee $250 · See costs and requirements →Alabama LLC guideFiling fee $200 · See costs and requirements →How to form an LLCGeneral step-by-step formation guide →Annual report complianceDeadlines and fees for all 50 states →
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