Tennessee LLC vs Partnership

A Tennessee general partnership provides zero liability protection. A Tennessee LLC costs $300 to form but protects all members under the Tennessee Revised LLC Act. Tax treatment is identical. For formation, see how to form a Tennessee LLC.

The $300 Question

The cost differential in Tennessee is higher than cheap states:

• Partnership: $0 formation, $0 annual
• LLC: $300 formation + $600/year ($300 report + $300 F&E)

But the liability protection is equally critical. One lawsuit from a partner's actions can cost every other partner their personal assets.

FAQ

Is $600/year worth the protection?

Absolutely, if your business has any liability exposure. The minimum $600/year is still far less than one lawsuit's cost.