How much does it cost to start a business in Tennessee?
Doing it yourself, expect about $300 in year one — that's the Tennessee LLC filing fee and the unavoidable state charges. With a registered agent service and a paid operating agreement it's closer to $600. Here's every line item, and what you can skip. Tennessee's LLC fees scale with membership ($50/member, $300 minimum) both to form and every year.
Tennessee LLC filing fee — $300
The one required government charge to create the LLC — filing the Articles of Organization with Tennessee. Processing is immediate online. File directly with the state; a "filing service" just adds a markup on top of this.
Registered agent — $0–$150/yr
$0 if you're your own agent (you need a physical Tennessee street address and to be around during business hours). A service runs about $100–$150/year and keeps your home address off the public record.
EIN (federal tax ID) — $0
Free from the IRS in about 10 minutes online. Anyone charging you for an EIN is reselling a free government service.
Operating agreement — $0–$100
Free with a solid template (you keep it, you don't file it). A lawyer or a formation upsell charges $100+ for the same single-member document.
Ongoing Tennessee report — $300 / annual
An annual filing — $50 per member, $300 minimum, $3,000 max. Miss it and the state can administratively dissolve your LLC.
Local business license — $0–$150
Many cities and counties require a general business or occupational license (often $50–$150/year); some have none. This is separate from the state and depends on where you operate.
Business bank account — $0–$15/mo
Plenty of banks and credit unions offer free small-business checking. Keep business and personal money fully separate — it's what makes the LLC's liability shield hold up.
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Build my planFrequently asked
What's the cheapest way to start a business in Tennessee?
Register as a sole proprietor (no state filing, $0) and get a free EIN. The trade-off is no liability protection — your personal assets are exposed. The cheapest way to get that protection is a DIY LLC: about $300 in year one, filing directly with the state and acting as your own registered agent.
How much is an LLC in Tennessee?
The state charges $300 to file. After that, budget roughly $425/year ongoing — the Tennessee report plus a registered agent if you keep one. An EIN and operating agreement can both be $0.
Do I have to pay LegalZoom or a filing service?
No. Every required step — the state filing, the EIN, the operating agreement — you can do yourself for the government fee alone. Filing services bundle a markup onto the same $$300 state fee. FirstBearing gives you the filled-in forms and the official links so you file direct.
What ongoing costs should I expect in Tennessee?
About $425/year: Tennessee's report fee, a registered agent renewal if you use a service (~$125), and any local business license. That's before taxes on what you actually earn.
Is there a fee to get an EIN in Tennessee?
No. The EIN comes from the IRS, not the state, and it's free. Apply directly at IRS.gov — never pay a third-party site for one.
Official sources
- Tennessee — form your LLC (see the current fee)
- Tennessee — annual / periodic report
- Tennessee — tax registration
- IRS — apply for an EIN (free)
Fees and timelines are commonly-cited figures last reviewed 2025-06 and can change — always confirm on the official site. This is educational information, not legal or tax advice.