Multi-Member Tennessee LLC — Per-Member Costs & Structure
Multi-member Tennessee LLCs face a unique cost: $300 PER MEMBER filing fee at formation. A 3-member LLC costs $900 just to form. Operating agreement is critical. For formation, see how to form a Tennessee LLC. For all types, see overview.
The Per-Member Cost Factor
| Members | Formation Fee | Annual Minimum | Year 1 Total |
|---|---|---|---|
| 2 | $600 | $600 | $1,200 |
| 3 | $900 | $600 | $1,500 |
| 5 | $1,500 | $600 | $2,100 |
| 10 | $3,000 | $600 | $3,600 |
This makes Tennessee one of the most expensive states for multi-member LLC formation.
Operating Agreement — Essential
Given the high costs, your operating agreement must address:
- Capital contributions (who pays the $300/member fee?)
- F&E tax funding ($300+ annually)
- Profit allocation and distributions
- Member additions (no additional state per-member fee after formation, but operating agreement should address economics)
FAQ
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Get StartedDoes adding a member later cost $300?
No. The per-member fee applies only at formation and foreign LLC registration. Adding members later doesn't trigger another per-member state fee (though your operating agreement should address the economics).