The cost to form an LLC for a Memphis business starts with the $300 Tennessee filing fee. Add annual fees, a registered agent, and local Memphis business taxes below.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Tennessee charges a $300 filing fee to form an LLC and a $300 annual report each year. Tennessee has the highest combined state and local sales tax rate in the country, averaging over 9.5% when local taxes are included. However, the state has no income tax, making it favorable for high earners.
| Cost Item | Amount | When Due |
|---|---|---|
| Tennessee Filing Fee | $300 | One-time at formation |
| Annual report | $300 | Annually |
| Registered Agent Service | $49 to $300/year | Annually |
| Local Memphis Business License / Tax | $50/year (est.) | Annually |
| Operating Agreement | $0 to $500 | One-time (recommended) |
| EIN (Federal Tax ID) | Free | One-time (IRS.gov) |
Tennessee does not levy a local business income tax, but the state imposes a business tax on gross receipts that is collected for the state and the local jurisdiction, and Memphis and Shelby County require a business license. Budget for the state and local business tax and the Tennessee LLC fees on top of the state filing fee.
Memphis sits on the Mississippi River and is a global logistics powerhouse, home to the FedEx world hub and Memphis International Airport (one of the busiest cargo airports on earth), along with healthcare, distribution, manufacturing, and a deep music heritage.
| Local Metric | Memphis (2026 estimate) |
|---|---|
| Metro population | 630,000 |
| County / jurisdiction | Shelby County |
| Cost of living index (US avg = 100) | 81 |
| MIT living wage, single adult | $19.00/hour |
| MIT living wage, one earner supporting a family of four | $38.50/hour |
| Applicable minimum wage | $7.25/hour |
| Average rent, 1-bedroom | $1,000/month |
| Average rent, 2-bedroom | $1,250/month |
| Median home price | $175,000 |
| Median household income | $48,000/year |
| Combined sales tax rate | 9.75% |
| Effective property tax rate | 1.3% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The LLC filing fee is set by Tennessee at $300, since LLCs are formed at the state level. Add the $300 annual report (each year), a registered agent (about $49 to $300/year), and any local Memphis business license or tax. Tennessee does not levy a local business income tax, but the state imposes a business tax on gross receipts that is collected for the state and the local jurisdiction, and Memphis and Shelby County require a business license. Budget for the state and local business tax and the Tennessee LLC fees on top of the state filing fee.
Tennessee does not levy a local business income tax, but the state imposes a business tax on gross receipts that is collected for the state and the local jurisdiction, and Memphis and Shelby County require a business license. Budget for the state and local business tax and the Tennessee LLC fees on top of the state filing fee.
Plan for the $300 annual report, registered agent renewal (about $49/year), and any local Memphis business license or tax. The calculator above totals these for you.
LLCs are registered with the Tennessee Department of Revenue at the state level, not the city. You then comply with local Memphis requirements such as a business license, zoning, and any city business tax. There is no separate city-level LLC filing.
If your business actually operates in Memphis, forming in Tennessee is usually simplest. Forming in Delaware or Wyoming while operating in Memphis typically forces you to register as a foreign LLC in Tennessee anyway, paying fees in both states.