Business Formation / LLC Tennessee

How Much Does It Cost to Start an LLC in Tennessee?

🏁 Initial Formation Costs

• Articles of Organization:

  • $300 base fee for up to 6 members.

  • +$50 per additional member beyond 6, up to a $3,000 maximum.
    
    

• Name Reservation (optional): $20 to reserve your LLC name for up to 120 days. 

• DBA / Assumed Name (optional): About $20, filed at the county level. 

• Registered Agent Service (optional): $0 if self-appointed, or $100–$150/year for a commercial provider. 

• Operating Agreement (optional): Typically free DIY; attorney-drafted may cost $200–$500+. 

• EIN (Federal Tax ID): Free, obtained from the IRS.

🔄 Ongoing & Annual Costs

• Annual Report:

  • $300 minimum, plus $50 per additional member beyond 6 (up to $3,000).

  • Due annually, by the first day of the fourth month after the fiscal year end. 

• Franchise & Excise Taxes:

  • Franchise tax is 0.25% of net worth or tangible property, with a $100 minimum. 

• Registered Agent Service (optional): $0–$150/year depending on provider.

• Local Business Licenses / Permits: e.g., state license ($15) or city-level fees like Nashville delivery license ($150+). 

• Certificate of Existence: $20 (optional). 

💰 Estimated Cost Summary

📌 Quick Takeaways

1. Formation: Starting your LLC costs $300 minimum (per-member structure applies). 

2. Annual Report: Same minimum as formation—$300 per year, plus $50 for each member beyond six.

3. Franchise Tax: Minimum $100 per year, based on net worth/property. 

4. Optional Costs: Name reservation ($20), DBA ($20), registered agent ($0–$150), EIN (free), and other local fees.

✅ What to Do Next

• Decide member structure to calculate formation and annual report fees.

• File Articles of Organization with initial fees included.

• Appoint a registered agent (optional service-based).

• Draft an Operating Agreement.

• Obtain your free EIN.

• Prepare to file the annual report each year at minimum cost.

• Budget for franchise/excise tax and any local permit fees.

🛑 What additional costs am I responsible for?

In addition to our fee, you will be potentially responsible for the costs of some or all of the items below if applicable.

1. Licenses 
   
2. Filing Fees
3. Reports
4. Name Reservations
5. Articles of Organization