Is it cheaper to form an LLC in Tennessee or Wisconsin?

Wisconsin is cheaper at formation ($130) than Tennessee ($300). Ongoing costs are also different: $125 vs $500 per year. Total over three years: $505 vs $1,800.

Can I form an LLC in Tennessee if I live in Wisconsin?

Yes, but your Wisconsin business will almost certainly need to register as a foreign LLC in Wisconsin too, which means paying Wisconsin's foreign registration fee and any ongoing Wisconsin obligations on top of the Tennessee ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Tennessee vs Wisconsin?

Tennessee online: 1 business day; Wisconsin online: 1 business day. Tennessee does not offer paid expedite. Wisconsin offers paid expedite from $25.

Which state has lower taxes for an LLC, Tennessee or Wisconsin?

Tennessee: no state income tax, plus a $100 minimum entity-level tax. Wisconsin: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Tennessee and Wisconsin both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Tennessee or Wisconsin to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Tennessee vs Wisconsin LLC comparison

Tennessee charges $300 to form an LLC; Wisconsin charges $130. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Wisconsin runs about $1,295 less in total state fees than Tennessee. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

Tennessee imposes an entity-level annual tax on every LLC ($100 minimum). Wisconsin does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Tennessee $300

Wisconsin $130

Wisconsin saves $170

Year 1 total estimate

Tennessee $800

Wisconsin $255

Wisconsin saves $545

Ongoing per year

Tennessee $500

Wisconsin $125

Wisconsin saves $375

3-year total

Tennessee $1,800

Wisconsin $505

Wisconsin saves $1,295

Key differences at a glance

Wisconsin costs $170 less to form ($130 vs $300).
Wisconsin is $375 per year cheaper to maintain ($125 vs $500).
Tennessee has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Tennessee imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Wisconsin does not.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Tennessee

No state income tax

Only Wisconsin

Paid expedited tier
No entity-level franchise or LLC tax

Both states

Online filing
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Tennessee Wisconsin

Year 1

$800

$255

Year 2

$1,300

$380

Year 3

$1,800

$505

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Tennessee, business operates there No foreign LLC registration needed. You pay Tennessee fees only.	$800	$500	$1,800
You live in Wisconsin, business operates there No foreign LLC registration needed. You pay Wisconsin fees only.	$255	$125	$505
Non-resident forming in Tennessee with operations elsewhere You pay Tennessee's fees plus a typical home-state foreign LLC registration of about $200 per year.	$1,000	$700	$2,400
Non-resident forming in Wisconsin with operations elsewhere You pay Wisconsin's fees plus a typical home-state foreign LLC registration of about $200 per year.	$455	$325	$1,105

Tennessee vs Wisconsin: full comparison

Dimension	Tennessee	Wisconsin
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	1 business day	1 business day
Expedited option Paid fast-track filing	Not offered	$25
Annual report Required in addition to tax	Required, $300	Required, $25
State-imposed annual tax Franchise, privilege, or LLC tax minimum	$100 minimum	None
State income tax On pass-through LLC income at member level	No	Yes
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$300	$100
State sales tax General statewide rate	7.0%	5.0%

Taxes in Tennessee and Wisconsin

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Tennessee tax

$100 minimum annual tax (net-worth basis). No state income tax. Corporate rate 6.5%.

Wisconsin tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 7.9%.

Ongoing compliance

The recurring filings each state requires after formation.

Tennessee

Annual report $300, due on your anniversary month. Registered agent required in Tennessee.

Wisconsin

Annual report $25, due on your anniversary month. Registered agent required in Wisconsin.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Tennessee

Check business-name availability on the Tennessee entity search.
Appoint a registered agent with a physical Tennessee street address.
File Articles of Organization – Limited Liability Company (Form SS-4270) for $300.
Wait for approval. Online typically 1 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Tennessee statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $300 when it comes due.

Wisconsin

Check business-name availability on the Wisconsin entity search.
Appoint a registered agent with a physical Wisconsin street address.
File Articles of Organization, Limited Liability Company (Form DFI/CORP/502) for $130.
Wait for approval. Online typically 1 business days. Paid expedite from $25.
Adopt an operating agreement (recommended, not required by Wisconsin statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $25 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Tennessee and Wisconsin (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Tennessee or Wisconsin does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Tennessee Secretary of State, Business Services Division

Website: sos.tn.gov/business-services
Phone: (615) 741-2286
Email: TNSOS.CORPINFO@tn.gov
Mail: 312 Rosa L. Parks Avenue, Snodgrass Tower 6th Floor, Nashville, TN 37243
Office: 312 Rosa L. Parks Avenue, Snodgrass Tower, Nashville, TN 37243
Hours: 8:00 AM to 4:30 PM Central, Monday to Friday

Wisconsin Department of Financial Institutions, Division of Corporate and Consumer Services

Website: dfi.wi.gov/Pages/BusinessServices/BusinessEntities/Default.aspx
Phone: (608) 261-7577
Email: DFICorporations@dfi.wisconsin.gov
Mail: Department of Financial Institutions, Division of Corporate and Consumer Services, P.O. Box 93348, Milwaukee, WI 53293-0348
Office: 4822 Madison Yards Way, North Tower, Madison, WI 53705
Hours: 7:45 AM to 4:30 PM Central, Monday to Friday

Tennessee Department of Revenue

Website: www.tn.gov/revenue.html
Phone: (615) 253-0600
Mail: 500 Deaderick Street, Nashville, TN 37242
Hours: 8:00 AM to 4:30 PM Central, Monday to Friday

Wisconsin Department of Revenue

Website: www.revenue.wi.gov
Phone: (608) 266-2776
Mail: Wisconsin Department of Revenue, P.O. Box 268, Madison, WI 53790-0001
Office: 2135 Rimrock Road, Madison, WI 53713
Hours: 7:45 AM to 4:30 PM Central, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Tennessee or Wisconsin?

Wisconsin is cheaper at formation ($130) than Tennessee ($300). Ongoing costs are also different: $125 vs $500 per year. Total over three years: $505 vs $1,800.
Can I form an LLC in Tennessee if I live in Wisconsin?

Yes, but your Wisconsin business will almost certainly need to register as a foreign LLC in Wisconsin too, which means paying Wisconsin's foreign registration fee and any ongoing Wisconsin obligations on top of the Tennessee ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Tennessee vs Wisconsin?

Tennessee online: 1 business day; Wisconsin online: 1 business day. Tennessee does not offer paid expedite. Wisconsin offers paid expedite from $25.
Which state has lower taxes for an LLC, Tennessee or Wisconsin?

Tennessee: no state income tax, plus a $100 minimum entity-level tax. Wisconsin: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Tennessee and Wisconsin both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Tennessee or Wisconsin to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

TennesseeOpen Tennessee LLC guide →
WisconsinOpen Wisconsin LLC guide →

More Tennessee and Wisconsin comparisons

More Tennessee vs ...

More Wisconsin vs ...

Sources

Filing fee: law.justia.com/codes/tennessee/title-48/limited-liability-companies/ch… · verified April 21, 2026
Tenn. Code Ann. §48-249-1007(a)(1): Initial filing fee = $50 × number of members, minimum $300, maximum $3,000. The default reported value is the $300 statutory minimum (applies to LLCs with 1-6 members). Justia mirror used because sos.tn.gov PDFs and some tn.gov pages returned 403/timeouts; language matches the SOS Form SS-4270 fee instructions.
Filing fee: sos-prod.tnsosgovfiles.com/s3fs-public/document/SS-4270%20LLC_0.pdf · verified April 21, 2026
Tennessee SOS Form SS-4270 (Rev. 01/25) Articles of Organization instructions confirm $50/member with $300 minimum, $3,000 maximum. If the articles prohibit the LLC from doing business in Tennessee, the flat fee is $300 regardless of member count.
Expedited filing: sos.tn.gov/businesses/faqs · verified April 21, 2026
Tennessee Secretary of State does not offer paid expedited processing for LLC Articles of Organization. Online filings through TNBear/TNCaB typically complete within 1 business day, which serves as the de facto expedited pathway. Recorded as 'offered: false'.
Annual report fee: law.justia.com/codes/tennessee/title-48/limited-liability-companies/ch… · verified April 21, 2026
Tenn. Code Ann. §48-249-1007(a)(2): Annual filing fee = $50 × number of members as of the annual report date, minimum $300, maximum $3,000. Due the first day of the fourth month after fiscal year close. Reported value is the $300 statutory minimum.
Franchise tax: www.tn.gov/revenue/taxes/franchise---excise-tax.html · verified April 21, 2026
Tennessee Department of Revenue Franchise & Excise Tax page. LLCs are subject to both taxes. Franchise tax: 0.25% of Tennessee apportioned net worth with $100 minimum (property-measure alternative repealed by Public Chapter 950, effective tax years ending on/after Jan. 1, 2024). Excise tax: 6.5% of Tennessee-sourced net earnings. Tenn. Code Ann. §67-4-2007 (excise), §67-4-2105 (franchise).
Operating agreement requirement: law.justia.com/codes/tennessee/title-48/limited-liability-companies/ch… · verified April 21, 2026
Tenn. Code Ann. §48-249-203: An operating agreement need not be in writing (except as articles or a prior operating agreement provision require). Tennessee law permits but does not require adoption of a written operating agreement.
Foreign LLC registration fee: sos-prod.tnsosgovfiles.com/s3fs-public/document/SS-4233%20COA%20LLC.pd… · verified April 21, 2026
Tennessee SOS Form SS-4233 Application for Certificate of Authority (Foreign LLC). Fee = $50 × number of members, minimum $300, maximum $3,000 (same statutory formula as domestic filing fee). Recorded $300 minimum.
Publication requirement: sos.tn.gov/businesses/faqs · verified April 21, 2026
Tennessee does not require newspaper publication of LLC formation. Confirmed by absence of such requirement in Tenn. Code Ann. §48-249-202 (Articles of organization) and SOS FAQ.
Business name search: tnbear.tn.gov/Ecommerce/NameAvailability.aspx · verified April 21, 2026
Tennessee Business Information Search (TNBear). Use before filing Articles of Organization to confirm name availability.
Sales tax rate: www.tn.gov/revenue/taxes/sales-and-use-tax.html · verified April 21, 2026
Tennessee Department of Revenue: statewide sales and use tax rate is 7% (general rate); 4% state rate on food and food ingredients. Local option adds up to 2.75%, for combined rates up to 9.75%.
Corporate income tax rate: www.tn.gov/revenue/taxes/franchise---excise-tax.html · verified April 21, 2026
Tennessee excise tax rate is 6.5% of Tennessee-sourced net earnings. Reported here as the state's functional corporate income tax rate; applies to C-corps, LLCs taxed as corporations, and (for entity-level excise only) to default-classified LLCs.
Filing fee: dfi.wi.gov/Pages/BusinessServices/BusinessEntities/Fees.aspx · verified April 21, 2026
Wisconsin DFI Corporation Fee Schedule: Articles of Organization $170 paper, $130 online. Online fee recorded as the default filingFee. Authority: Wis. Stat. 183.0114.
Expedited filing: dfi.wi.gov/Pages/BusinessServices/BusinessEntities/Fees.aspx · verified April 21, 2026
Wisconsin DFI expedited service: $25 for next business day processing (paper filings), $250 for 4-hour in-person, $500 for 1-hour in-person. Online filings are typically processed within one business day without extra expedite fee; $25 next-day tier recorded.
Annual report fee: dfi.wi.gov/Pages/BusinessServices/BusinessEntities/Fees.aspx · verified April 21, 2026
Wisconsin domestic LLC annual report: $25 online, $40 by mail. Foreign LLC annual report: $65 online, $80 by mail. Online fee recorded. Authority: Wis. Stat. 183.0212 (2023 WULLCL) for reporting requirement, DFI fee schedule for fee amounts.
Franchise tax: www.revenue.wi.gov/Pages/FAQS/ise-crpginfo.aspx · verified April 21, 2026
Wisconsin DOR Corporation Income/Franchise Tax FAQ: corporations and LLCs treated as corporations pay franchise or income tax at 7.9%. Standard LLCs (partnerships or disregarded entities) are not subject to the entity-level franchise tax. There is no flat minimum LLC tax in Wisconsin.
Corporate income tax rate: www.revenue.wi.gov/Pages/FAQS/ise-crpginfo.aspx · verified April 21, 2026
Wisconsin corporate franchise/income tax rate is a flat 7.9% under Wis. Stat. 71.27. Applies to C corps and LLCs taxed as C corps.
Sales tax rate: www.revenue.wi.gov/Pages/FAQS/pcs-taxrates.aspx · verified April 21, 2026
Wisconsin statewide sales and use tax is 5%. County tax adds 0.5% in most counties; premier resort area taxes apply in a few localities. Statewide base rate recorded here.
Foreign LLC registration fee: dfi.wi.gov/Pages/BusinessServices/BusinessEntities/Fees.aspx · verified April 21, 2026
Wisconsin DFI fee schedule: Foreign LLC Application for Certificate of Registration $100. Authority: Wis. Stat. 183.1002.
Operating agreement requirement: docs.legis.wisconsin.gov/statutes/statutes/183/i/0105 · verified April 21, 2026
Wis. Stat. 183.0105 (Wisconsin Uniform Limited Liability Company Law, effective Jan. 1, 2023): operating agreement may be oral, written, implied, or a combination. Not required for LLC validity. Default statutory rules under Chapter 183 apply when no operating agreement is adopted.
Publication requirement: docs.legis.wisconsin.gov/statutes/statutes/183 · verified April 21, 2026
Wisconsin Chapter 183 contains no publication or newspaper notice requirement for LLC formation.
Business name search: www.wdfi.org/apps/CorpSearch/Search.aspx · verified April 21, 2026
Wisconsin DFI CorpSearch. Used to confirm name availability before filing Form 502.

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