How Much Does an LLC Cost in Tennessee? (2024 Filing Fees)

The filing fee for forming an LLC in Tennessee is $300, and the annual report fee is $300. Though this may seem like a high cost, it’s essential for legally establishing and maintaining your business in the state.

But wait—there’s more!

You’ll also want to budget for things like hiring a registered agent, securing a business name or DBA, and obtaining necessary licenses or permits.

How Much Does an LLC Cost in Tennessee?

Starting an LLC in Tennessee involves several costs. Here’s a breakdown:

• Filing Fee: The initial fee to file the Articles of Organization is $300. This is a one-time payment made to the Tennessee Secretary of State.
• Per Member Fee: For additional members, there is a charge of $50 per member. This amount can raise the total fees depending on the number of members you have.
• Annual Report Fee: Each year, you must file an annual report, which costs $300.
• Registered Agent Fees: If you use a registered agent service, expect to pay $100 to $300 annually.
• DBA Registration: If you choose to operate under a different name, registering as a “Doing Business As” (DBA) can cost $20.
• Business Licenses: All LLCs need a $15 business license in Tennessee. If your business earns between $3,000 and $10,000, get a minimal activity license; if it earns over $10,000, get a standard license, costing $15.
• Certificate of Good Standing: This document costs approximately $20 if needed.
• Taxes: Be aware of state taxes for your LLC, which can vary based on your business type.

LLC Costs in Tennessee (Formation Fees)

Here’s a breakdown of the various costs involved in starting an LLC in Tennessee:

Tennessee LLC Requirements	Cost
LLC Business Name Search	$0
Articles of Organization	$300
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$300/annually
LLC Name Reservation Fee (optional)	$20
Tennessee Certificate of Good Standing (optional)	$20
Foreign LLC Registration (optional)	$300
Fictitious Name (DBA) (optional)	$20
Taxes	Varies
State Business License Fees	$15
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Tennessee	$600 – $1139

Total LLC costs in Tennessee range from $600 to $1,139. If you do everything yourself and skip the optional extras, you might only spend around $600. However, if you decide to pay for additional services and requirements, your costs could go up to between $800 and $1,139.

The first mandatory expense is the $300 fee for filing the Articles of Organization, which is essential for officially establishing your LLC. Additionally, you will need to budget for the annual report, which costs $300 each year.

Now, let’s discuss the optional costs.

Conducting an LLC business name search is free, and obtaining an Employer Identification Number (EIN) is also free from the IRS. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest.

You may also want a Tennessee Certificate of Good Standing, which costs $20. Registering a foreign LLC in Tennessee incurs a fee of $300. Operating under a different name (DBA) costs $20.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300.

Tennessee LLC Business Name Search Cost ($0)

Before forming your LLC, you must choose a name for your business. In Tennessee, checking if your desired name is available doesn’t cost anything. You can search for a business name online through the Tennessee Secretary of State’s website.

This search helps ensure that another business entity doesn’t already use your chosen name. It’s a crucial step, as your LLC’s name must be unique. You must create a different one if someone else has registered the name.

To search, visit the Tennessee official state website. Enter the name you want to use and see if it’s available.

Using this service is straightforward and free. It saves you time and effort later in the registration process. Naming your LLC properly can help with branding and prevent legal issues.

Tennessee Articles of Organization ($300)

You must file the Articles of Organization to form an LLC in Tennessee. This document is essential as it officially registers your LLC with the state. The cost to file these articles is $300.

The Tennessee Secretary of State handles your Articles of Organization submission. This one-time fee covers the processing of your application. The fees can be higher if your LLC has multiple members, but the minimum is always $300.

After filing, the Tennessee LLC processing time depends on the filing method and the state’s workload. If you file online, you will get approval instantly. If you prefer mail filing, approval takes 2-3 weeks.

You can file the Articles of Organization online or by mail. Online filings are usually processed faster, so consider this method if you’re looking to get your LLC up and running quickly.

LLC Operating Agreement Cost in Tennessee ($0 with Northwest)

When starting an LLC in Tennessee, having an operating agreement is important. This document explains how your LLC will function and outlines the roles of its members. It can help prevent misunderstandings later on.

Typically, the cost of an operating agreement can range from $0 to $600, depending on how you create it. If you work with Northwest Registered Agent, you can get your operating agreement for $0.

Using Northwest can save you time and money. They provide a straightforward process for creating a customized operating agreement that meets your needs.

Registered Agent Fee ($0-$300/year)

When forming an LLC in Tennessee, you need a registered agent. This can be you or a professional service, and the fee can vary depending on your choice.

If you choose to be your own registered agent in TN, there is no cost. You just provide your name and address. However, you must be available during business hours to receive legal documents.

Hiring a professional Tennessee registered agent costs between $100 and $300 annually. These services can help manage important mail and keep your information private. For instance, LegalZoom charges around $249 annually, while ZenBusiness offers services for $199 annually.

Consider using Northwest Registered Agent, which is known for its competitive pricing. They offer free services for the first year if you hire them to help form your LLC. After that period, their fee is just $125 annually. This can be a great way to save money while getting reliable support.

EIN Cost in Tennessee ($0 from the IRS website)

Obtaining an Employer Identification Number (EIN) is important when you form an LLC in Tennessee. The great news is that getting an EIN is free of charge through the IRS.

You can complete the form online by visiting the IRS website to apply for your EIN. The process is simple and usually takes just a few minutes.

You can also apply by mail or phone. If you choose to call, ensure you have the necessary information ready.

Remember, having an EIN is crucial for tax purposes and helps you separate your personal and business finances.

Tennessee Annual Report ($300/annually)

In Tennessee, your LLC is required to file an annual report each year. The report helps keep your business information current with the state.

The annual report fee starts at $300 for LLCs with up to six members. If your LLC has more than six members, the fee increases by $50 for each additional member, up to a maximum of $3,000.

You must submit your annual report by the first day of the fourth month after your fiscal year ends. For instance, if your fiscal year ends on June 30, your report is due by October 1. If your fiscal year follows the calendar year, you submit it by April 1.

LLC Name Reservation Fee in Tennessee ($20)

When you want to start an LLC in Tennessee, you might consider reserving your business name first. This step helps ensure that your chosen name is available when you file your Articles of Organization.

The fee to reserve a name is $20. This fee is paid to the Tennessee Secretary of State. By reserving your name, you can secure it for a specific period, which gives you peace of mind as you prepare your LLC documents.

You can apply online or by mail to reserve a name. The reservation lasts four months, allowing you enough time to file the necessary paperwork to form your LLC.

Fictitious Name/DBA Cost in Tennessee ($20)

When you want to operate your business under a name other than your legal name, you must register a fictitious name or DBA (Doing Business As). In Tennessee, the cost for this registration is $20.

The registration process is straightforward. First, check the Tennessee Secretary of State’s website to ensure your chosen name is unique. This will help confirm that no one else is using that name.

Once you have your name, you can apply online or by mail. If applying online, note that an additional service fee may apply. When applying by mail, you must fill out the required forms and send in your payment.

The registration lasts for five years. After that period, you must renew your DBA registration.

Tennessee Certificate of Good Standing ($20)

When running an LLC in Tennessee, you might need a Certificate of Good Standing, especially if you plan to open a foreign LLC outside the state. This certificate shows that your business is legally recognized and compliant with state regulations.

To obtain this certificate, you will need to follow a few simple steps. First, gather your business details, including your legal name and request information. You should also include your contact details.

You can order the certificate online or by mail. The required fee is $20 per request. This fee ensures that your certificate is processed and sent to you.

Tennessee Foreign LLC Registration Fee ($300)

The base fee for registering a foreign LLC in Tennessee is $300. This fee applies to LLCs with up to six members.

Suppose your LLC has more than six members; the fee increases. You will pay an additional $50 for each member above six. This can lead to a maximum registration fee of $3,000.

To start the registration process, you must file an Application for Certificate of Authority, Form SS-4233. This form is critical for legal recognition in Tennessee.

Prepare all necessary documents. Completing the application correctly is essential for the approval of your foreign LLC.

Tennessee State Business License Fee ($15)

In Tennessee, every LLC must obtain a business license, which costs $15.

You will need a minimal activity license if your business earns between $3,000 and $10,000. For businesses making more than $10,000, a standard business license is necessary. Both of these licenses also cost $15.

You can get your business license from your local county or municipal clerk. It’s important to check with your location, as requirements vary by county.

Tennessee LLC Taxes (varies)

An LLC does not pay federal taxes directly. Instead, profits pass through to the members, who report them on their tax returns. As an LLC member, you will pay federal income tax on your share of the profits, and you will also be subject to a self-employment tax rate of 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare.

Tennessee does not have a state income tax, but LLCs are still subject to other taxes, including:

• Franchise Tax
• Excise Tax
• Business Taxes

Depending on your location, you might also face local income taxes. Additionally, you may need to pay:

• Sales and Use Tax
• Payroll Tax (if you have employees)
• Property Tax (if your LLC owns the property)

Your tax situation can vary significantly based on your business activities and industry.

Tennessee LLC Reinstatement Fee ($70)

If your LLC in Tennessee has been administratively dissolved or revoked, you can reinstate it. The cost for reinstatement is $70. This fee must be paid at the time you submit your application.

It’s important to note that this fee applies to the application only. If you have missed any annual report fees, those will need to be paid separately. For example, you might face a $300 fee for each past-due annual report if your LLC had 1-6 members.

You can reinstate your LLC through an online application or by mailing in a printed form. If you file online, a small convenience fee may be added.

Tennessee LLC dissolution fee ($20)

You must know the associated fees when you dissolve your LLC in Tennessee. The fee for filing the dissolution is $20. This straightforward, one-time payment goes directly to the Tennessee Secretary of State.

You’ll need to complete the Article of Dissolution to dissolve your LLC. This document officially informs the state that your LLC is closing. Depending on your preference, you can file this form by mail or online.

Remember that besides the $20 filing fee, you might want to consider other costs. For instance, it’s wise to consult with a lawyer or accountant. This can help ensure you follow all legal steps and manage any tax implications.

Be organized when preparing to dissolve. Gather all necessary information before filling out the forms. Make your payment through a credit card or bank transfer.

Tennessee LLC Change of Registered Agent Fee ($20)

Changing your registered agent in Tennessee costs $20. This fee is essential to keep your business compliant with state laws.

You need to provide specific details when filing for this change. Make sure to include:

• Registered Agent’s Name and Address: This should be the name or business of the person or business who will act as your registered agent.
• Secretary of State Control Number: This is necessary if your new agent is an organization.

You can pay this fee online using a credit card, debit card, or eCheck. If you prefer, you can also submit your request by mail or in person.

What is the Cheapest Way to Start Tennessee LLC?

Starting an LLC in Tennessee can vary in cost, but you have options to keep expenses low. The primary expense you’ll encounter is the $300 state filing fee for the Articles of Organization, a required fee paid to the Tennessee Secretary of State.

You can save money by filing the Articles of Organization yourself.

If you submit them online, you avoid extra costs charged by third-party services. While these services often charge fees ranging from $29 to $150 to help with the formation process, they are unnecessary for every entrepreneur.

Another cost to consider is the business license. Depending on your specific business type, this may add $15 to $30 to your start-up costs. This fee is also state-required but is manageable if planned for.

While DIY filing helps reduce costs, consider the potential downsides. Filing documents yourself means you bear the full responsibility for accuracy. Mistakes can lead to delays or rejections, which could cost you more in the long run.

The cheapest way to start an LLC in Tennessee is to file the Articles of Organization yourself for $300 while accounting for any necessary licenses. This saves you from extra fees while keeping your formation process straightforward.

Should You Use an LLC Formation Service in Tennessee? (here’s why)

Using an LLC formation service can be a smart choice for many. It offers several benefits that make the process easier and less stressful.

• Privacy benefits: Using a service like Northwest Registered Agent keeps your personal information private by providing your address as your registered agent rather than listing your address publicly.
• Peace of mind: With professionals handling your paperwork, you can be confident that everything is completed correctly, reducing the risk of mistakes that could delay your application.
• Staying compliant: An LLC formation service often provides reminders about annual reports and compliance deadlines, helping you avoid missing important dates and potential fines.
• Access to experts: You gain free access to LLC formation experts and attorneys, offering valuable guidance and support, especially if you’re new to starting a business.

Frequently Asked Questions

How much does it cost to have an LLC in Tennessee?

The filing fee for an LLC in Tennessee is $300, and an annual report fee of $300 to maintain the LLC.

Is Tennessee a good state to form an LLC?

Tennessee offers several advantages for forming an LLC, including no state income tax on personal income. This can benefit business owners looking to minimize tax liabilities. Additionally, the process to establish an LLC is straightforward and relatively quick.

How long does it take for LLC approval in Tennessee?

The time to get your Tennessee LLC approved depends on the filing method and the state’s workload. If you file online, you will get approval instantly. If you prefer mail filing, approval takes 2-3 weeks.

Can I make a free LLC in Tennessee?

No, you cannot form an LLC for free in Tennessee. Filing the Articles of Organization is associated with fees, which start at $300. Additional costs for other services, such as a registered agent, may exist.

What are the benefits of an LLC in Tennessee?

Forming an LLC provides personal liability protection for business owners. This means your personal assets are separate from your business debts. Also, LLCs enjoy flexibility in management and tax benefits, which can benefit small business owners.

Do I need a business license for an LLC in Tennessee?

Yes, you typically need a business license to operate legally. However, this can vary depending on your location and business type. Check with your local government to understand specific requirements and any applicable fees.

How much does it cost to reinstate an LLC in Tennessee?

Reinstating an LLC in Tennessee costs $70. This fee is required to restore your LLC to active status if it has been dissolved or administratively revoked.

Do I need to hire an attorney to form an LLC in Tennessee?

Hiring an attorney is not required to form an LLC in Tennessee, but it can be helpful. An attorney can guide you through the paperwork and ensure compliance with state laws. If you feel confident, you can complete the process yourself.

How much does it cost to dissolve an LLC in Tennessee?

Dissolving an LLC in Tennessee costs around $20 for filing the Articles of Dissolution. You may also need to settle debts and file final tax returns before officially dissolving the LLC.

Should I hire an LLC formation service in Tennessee?

Using a formation service can simplify the process of starting an LLC. These services often handle the paperwork and ensure you meet all legal requirements. This may be a good option if you prefer a streamlined process and need assistance.

Are there penalties for paying my fees late in Tennessee?

Yes, there are penalties for late LLC fee payments in Tennessee. If you miss the annual report deadline, your LLC may face a late fee or be administratively dissolved.

What happens if I do not file my Tennessee LLC annual report?

Failing to file the annual report can lead to penalties and administrative dissolution of your LLC. It’s important to keep up with this requirement to maintain your business status and avoid losing liability protection.