Tennessee LLC 2024 Annual Cost and Start-Up Fee Guide

Nicholas Quick,

Welcome to the comprehensive guide on Tennessee LLC 2024 Annual Cost and Start-Up Fees! Whether you’re an aspiring entrepreneur or an existing business owner in the Volunteer State, understanding the financial aspects of establishing and maintaining a Limited Liability Company (LLC) is crucial. This article will provide you with a concise overview of the costs and fees associated with starting and operating an LLC in Tennessee, enabling you to make informed decisions and embark on a successful business journey.

Initial Formation Expenses

A stack of dollar bills.

Initial Formation Expenses for a Tennessee LLC include the cost of filing the Articles of Organization with the Secretary of State, which is $300. Additionally, you may need to hire a registered agent to receive legal documents on behalf of your LLC, which can cost around $100 to $300 per year. Another expense to consider is obtaining an Employer Identification Number (EIN) from the IRS, which is required for tax purposes and is typically free. You may also need to pay for a business license, which can range from $15 to $50 depending on your location. It’s important to budget for these initial expenses to ensure a smooth start for your LLC.

Filing Fees for Articles of Organization

Filing fees for Articles of Organization in Tennessee range from $50 to $300, depending on the type of LLC and the method of filing. These fees are paid to the Secretary of State’s office and are non-refundable. It is important to note that these fees are separate from the annual report filing fee, which is $300 for most LLCs. To complete the filing, you will need to provide information such as the LLC’s name, the registered agent’s name and address, and the purpose of the LLC. Once the Articles of Organization are approved, you will receive a Certificate of Organization from the Secretary of State.

Name Reservation and DBA Costs

When starting an LLC in Tennessee, it is important to consider the costs associated with name reservation and doing business as (DBA).

To reserve a name for your LLC, the fee is $20. This ensures that no other business can use the same name in the state.

If you plan to operate under a different name than your LLC’s legal name, you will need to file a DBA. The cost for filing a DBA is $20.

These costs are essential to establish your LLC’s identity and protect your business name. By reserving a name and filing a DBA, you can confidently operate your business under a name of your choosing.

Registered Agent and Office Expenses

Registered Agent: Every Tennessee LLC is required to have a registered agent, which is a person or entity responsible for receiving legal documents on behalf of the company. This ensures that important notices and legal correspondence are properly delivered and received. The cost of hiring a registered agent can range from $50 to $300 per year, depending on the service provider.

Office Expenses: Operating a physical office or workspace for your Tennessee LLC may incur various expenses. These can include rent, utilities, internet and phone services, office supplies, and maintenance costs. The actual amount will depend on the size and location of your office. It is important to budget for these expenses and factor them into your overall business costs.

Operating Agreement and EIN Acquisition

The operating agreement is a crucial document for a Tennessee LLC, as it outlines the rights and responsibilities of the members and how the company will be managed. This agreement helps establish clear guidelines for decision-making, profit distribution, and dispute resolution.

Acquiring an Employer Identification Number (EIN) is also essential for your LLC. This unique identifier is issued by the Internal Revenue Service and is required for tax purposes, opening a bank account, and hiring employees.

Both the operating agreement and EIN acquisition are important steps in setting up and maintaining a Tennessee LLC. Ensure you have these documents in place to protect your business and comply with legal requirements.

Ongoing Compliance and Annual Report Fees

Fee Type Description Amount
Annual Report Fee Required annual fee to maintain compliance and update company information with the state of Tennessee $50
Registered Agent Fee Cost associated with appointing a registered agent to handle legal and official documents on behalf of the LLC Varies (typically $50-$300 per year)
Late Filing Fee Penalty fee imposed for failing to submit the annual report by the due date $100
Amendment Fee Fee for making changes or amendments to the LLC’s articles of organization or operating agreement $20
Business License Cost to obtain a business license, if required, to operate the LLC in specific cities or counties within Tennessee Varies (depends on the location)
Franchise and Excise Tax Tennessee state tax imposed on LLCs based on their net worth or income Varies (based on the LLC’s financials)

Optional and Miscellaneous LLC Costs

While forming an LLC in Tennessee comes with its own set of costs and fees, there are also optional and miscellaneous costs to consider. These may include obtaining a trade name, which typically requires a separate filing fee. Additionally, depending on your business structure and needs, you may choose to hire a lawyer or accountant for legal and financial advice. Other optional costs may arise if you decide to open a bank account for your LLC or obtain a physical address instead of a post office box. It’s important to carefully consider these additional costs and weigh them against the benefits they may provide for your LLC.

Was this article helpful?
YesNo
LLC Annual Fees