Tennessee vs Texas LLC Cost (2026): $600 vs $300
Side-by-side LLC formation cost comparison for Tennessee and Texas: filing fees, annual report costs, processing time, and tax implications.
Forming an LLC in Texas costs $300 in year one — $300 cheaper than Tennessee ($600).
Tennessee
Texas
Lower CostFull LLC Cost Comparison: Tennessee vs Texas
| Factor | Tennessee | Texas |
|---|---|---|
| State filing fee (one-time) | $300 | $300 |
| Annual report fee | $300 / per year | None |
| Processing time | 1–3 business days | 1–3 business days |
| State income tax | No income tax | No income tax |
| First-year total | $600 | $300 |
Texas saves you $300 in year one compared to Tennessee.
Tennessee LLC Notes
Tennessee's minimum annual report fee is $300, which covers up to 6 members.
Texas LLC Notes
Texas has no personal income tax. LLCs file an annual franchise tax report if revenue exceeds $2.47M.
Which State Should You Actually Use?
For most small businesses, form your LLC where you actually do business — not where the filing fee is cheapest. If you operate in Tennessee, form there. If you operate in Texas, form there.
- Forming in your home state: Simpler compliance, no registered agent needed in another state, no foreign qualification fees.
- Forming in Wyoming or Delaware: Makes sense for investor-backed startups, multi-member LLCs with complex ownership structures, or businesses operating in multiple states.
- Key cost trap: If you form in Tennessee but operate in Texas, you'll pay both states' fees — eliminating any savings.
Compare More LLC Formation Costs
Was this calculator helpful?
Your feedback helps us improve CostCrunch
Thank you for your feedback! ✓
Save Your Results
Download a professional PDF report with your complete analysis, charts, and key insights.
Download Your Report
Enter your email to get your personalized PDF report. We'll also send you useful financial tips.
No spam. Unsubscribe anytime.
More Business Calculators
Break-Even Calculator
Find how many units to sell to cover costs
Employee Cost Calculator
Find the true cost of hiring an employee
Startup Cost Estimator
Estimate one-time and recurring startup costs
Profit Margin Calculator
Calculate gross, operating, and net margins
Self-Employment Tax Calculator
Estimate SE tax and quarterly payments for freelancers
Loan Comparison
Compare loan options side by side
Markup & Margin
Convert between markup and margin percentages
Payroll Tax Calculator
Estimate employer payroll taxes by state
Get notified when tax rates change
We monitor payroll tax rates, SUTA, and cost-of-living data across all 50 states. When rates change, we'll let you know. Free, no spam.
We respect your privacy. Unsubscribe with one click.