"Domestic" = formed in Tennessee. "Foreign" = formed elsewhere, registered to operate in Tennessee. Both owe Tennessee's Annual Report and F&E tax if doing business here. For formation, see how to form a Tennessee LLC.
| Factor | Domestic Tennessee LLC | Foreign LLC in TN |
|---|---|---|
| Formation/registration | $50/member ($300 min, $3,000 max) | $50/member ($300 min, $3,000 max) (same!) |
| Annual Report | $300 (April 1) | $300 (April 1) |
| F&E tax | $300 minimum | $300 minimum (on TN activities) |
| Registered agent | 1 (Tennessee) | 2 (home state + TN) |
| Home state costs | N/A | Home state fees too |
Because Tennessee charges the same $50-per-member fee (minimum $300) for both domestic formation AND foreign registration, there's less incentive to form elsewhere. In most states, foreign registration is a flat $100-$150 — making it reasonable to form in another state and register foreign. Tennessee's per-member foreign fee makes this strategy expensive.
Rarely. You'd pay Tennessee's per-member registration fee ($300 minimum) to register foreign PLUS your home state's fees. The only advantage: your home state may have lower ongoing costs or better legal provisions for specific purposes (Wyoming's Series LLC, asset protection).