What an LLC costs in Tennessee (2026)

Forming an LLC in Tennessee costs $300. After that the state charges Annual Report, $300 a year, and LLCs owe Tennessee franchise tax and Tennessee excise tax.

Cost	Amount	When
Articles of Organization (Form SS-4270)	$300	Once, to form	sos.tn.gov
Annual Report	Annual Report, $300 a year	1st day of the 4th month after fiscal year end (April 1 for calendar year)	sos.tn.gov
Tennessee franchise tax	$6,600 at $150,000 revenue	Yearly	tn.gov
Tennessee excise tax	$6,600 at $150,000 revenue	Yearly	tn.gov

LLC taxes in Tennessee by revenue

Revenue	Tennessee franchise tax	Tennessee excise tax	Total with report fee
$50,000	$100	$2,167	$2,567
$150,000	$100	$6,500	$6,900
$500,000	$100	$21,667	$22,067
$1,000,000	$100	$43,333	$43,733
$3,000,000	$100	$130,000	$130,400

Profit taken as two thirds of revenue where a tax is on net income.

Tennessee franchise tax: Actual tax is 0.25% of Tennessee net worth with a $100 minimum, due even if inactive. The property measure was repealed from 2024, so small businesses usually pay the $100 minimum. Not owed by sole props or general partnerships.

Tennessee excise tax: 6.5% of Tennessee taxable income. This is Tennessee's corporate income tax, and it also hits LLCs and S corps at the entity level. Not owed by sole props or general partnerships.

What else an LLC owner pays

The fees above are what the state charges the LLC. The bigger cost is tax on the profit: a single-member LLC pays the same income tax and self-employment tax as a sole proprietor. At $100,000 of profit that comes to $27,161 a year in Tennessee, fees included. An S corp election can lower it: LLC vs S corp in Tennessee.

Fees are $300 for up to 6 members, plus $50 per member over 6, capped at $3,000.

Questions

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

$300 to file the Articles of Organization (Form SS-4270).

How much does an LLC cost per year in Tennessee?

Annual Report, $300 a year, plus Tennessee franchise tax and Tennessee excise tax: $6,600 for a business with $150,000 of revenue and $100,000 of profit.

When is the Tennessee LLC report due?

1st day of the 4th month after fiscal year end (April 1 for calendar year).

Does an LLC pay Tennessee income tax?

Not by itself, in most cases: a single-member LLC's profit is taxed on the owner's return. Tennessee has no personal income tax on wages or business income.

Other states