Tennessee vs Wyoming LLC — Two No-Income-Tax States Compared
Both Tennessee and Wyoming have zero personal income tax. But their LLC cost structures differ significantly. For formation, see how to form a Tennessee LLC.
Comparison
| Factor | Tennessee LLC | Wyoming LLC |
|---|---|---|
| Personal income tax | None | None |
| Entity-level tax | F&E: $300 min (6.5%+0.25%) | None |
| Formation fee | $300/member | $100 flat |
| Annual fee | $300 report | $60 report |
| Total annual minimum | $600 | $60 |
| Series LLC | Not available | Available |
| Asset protection | Good | Strong (often cited as strongest) |
When Wyoming Wins
- Lower ongoing costs ($60/year vs $600/year)
- No entity-level tax (vs Tennessee's $300+ F&E)
- Series LLC available
- Stronger asset protection reputation
- Better for holding companies with no Tennessee nexus
When Tennessee Wins
Ready to get started?
Get Started- You live/operate in Tennessee (have nexus anyway)
- You benefit from Tennessee's business ecosystem (Nashville healthcare, logistics, etc.)
- You want one-state simplicity (forming in Wyoming and registering foreign in Tennessee adds complexity)
FAQ
If both states have no income tax, why does Tennessee cost more?
Tennessee's F&E tax is an entity-level tax that Wyoming doesn't have. Tennessee relies on entity taxes + sales tax to fund government; Wyoming relies on mineral revenues. Different funding models = different business costs.