Tennessee LLC Annual Report & Franchise/Excise Tax (2026)
The SOS annual report and DOR franchise/excise duties are separate. Individual ownership and federal disregarded status alone do not exempt a Tennessee LLC from franchise and excise tax. Federal disregard carries through under the limited rule for an SMLLC whose sole owner is classified as a corporation for federal tax purposes; its activity is included with that owner. FONCE and other statutory exemptions have separate conditions and application/renewal requirements. Identify the actual classification and applicable filings rather than assuming a general single-member exemption.
The annual report fee is $50 per member, $300 minimum and $3,000 maximum, with April1 due for calendar-year filers. The DOR F&E filing and tax are separate. Individual ownership and federal disregarded status alone do not exempt a Tennessee LLC from franchise and excise tax. Federal disregard carries through under the limited rule for an SMLLC whose sole owner is classified as a corporation for federal tax purposes; its activity is included with that owner. FONCE and other statutory exemptions have separate conditions and application/renewal requirements. Identify the actual classification and applicable filings rather than assuming a general single-member exemption.
- Annual report fee
- $50/member · $300 min · $3,000 max
- Annual report due date
- April 1 (calendar-year filers)
- Grace period
- 60 days
- Franchise tax
- 0.25% net worth · $100 min
- Excise tax
- 6.5% of net earnings
- Single-member exemption
- Yes — must still file to confirm
Two Filings, Two Agencies
This is the single most common point of confusion for Tennessee LLC owners. There are two genuinely separate obligations here, filed with two separate agencies:
The Annual Report — Secretary of State
$50/member ($300 minimum, $3,000 maximum), due April 1 for calendar-year filers, filed through TNCaB. Confirms your basic entity information.
Franchise & Excise Tax — Department of Revenue
Individual ownership and federal disregarded status alone do not exempt a Tennessee LLC from franchise and excise tax. Federal disregard carries through under the limited rule for an SMLLC whose sole owner is classified as a corporation for federal tax purposes; its activity is included with that owner. FONCE and other statutory exemptions have separate conditions and application/renewal requirements. Identify the actual classification and applicable filings rather than assuming a general single-member exemption.
Paying one does not satisfy the other. Founders who only track the $300 annual report and never file (or confirm exemption from) the franchise/excise return can end up with real, unexpected tax liability.
Annual Report Calculator
Tennessee Annual Report Calculator
Enter your member count and filing status
Formula: $50 × members, floor $300, ceiling $3,000. Excludes franchise/excise tax, which is filed separately. Educational estimate — confirm with the Secretary of State.
Specific F&E Exemptions and Corporate-Owner Disregard
Individual ownership and federal disregarded status alone do not exempt a Tennessee LLC from franchise and excise tax. Federal disregard carries through under the limited rule for an SMLLC whose sole owner is classified as a corporation for federal tax purposes; its activity is included with that owner. FONCE and other statutory exemptions have separate conditions and application/renewal requirements. Identify the actual classification and applicable filings rather than assuming a general single-member exemption.
How to File Both
File the annual report via TNCaB
Confirm your registered agent, principal address, and member count; pay the $50/member fee ($300 minimum) by April 1.
Determine your franchise/excise status
Individual ownership and federal disregarded status alone do not exempt a Tennessee LLC from franchise and excise tax. Federal disregard carries through under the limited rule for an SMLLC whose sole owner is classified as a corporation for federal tax purposes; its activity is included with that owner. FONCE and other statutory exemptions have separate conditions and application/renewal requirements. Identify the actual classification and applicable filings rather than assuming a general single-member exemption.
File Form FAE170 via TNTAP if applicable
Confirm the actual tax period, applicable return, payment and estimated-payment requirements with DOR. An annual-report filing or extension does not itself satisfy F&E duties.
If You Miss Either
Missed annual report
A 60-day grace period applies before your LLC drifts toward administrative dissolution.
Missed franchise/excise filing
Even if you owe $0 in tax due to the exemption, failing to file the confirming return can still create compliance issues — file it regardless of whether tax is owed.
Cure
File both overdue obligations as soon as possible through their respective portals — TNCaB for the report, TNTAP for franchise/excise.
Ahmad Adil's Take: if you take away exactly one thing from this Tennessee guide, make it this page. I've watched founders faithfully pay their $300 annual report every year and have no idea a completely separate tax filing existed until a notice arrived. Put both on your calendar as two distinct line items, not one combined "Tennessee fee." Even if you're confident you qualify for the single-member exemption, don't skip the confirming filing — "I thought I was exempt" is not the same as having actually told the Department of Revenue that.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities. Government fee reference: $300 minimum state fee.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities.
- ✓Confirm registered-agent eligibility, coverage, included periods and renewal charges.
- ✓Review address-use rules and privacy policies; a service does not remove all information from public filings.
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Annual report and F&E obligations
Individual ownership and federal disregarded status alone do not exempt a Tennessee LLC from franchise and excise tax. Federal disregard carries through under the limited rule for an SMLLC whose sole owner is classified as a corporation for federal tax purposes; its activity is included with that owner. FONCE and other statutory exemptions have separate conditions and application/renewal requirements. Identify the actual classification and applicable filings rather than assuming a general single-member exemption.
Tennessee LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.
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