Tennessee vs Wyoming LLC — Two No-Income-Tax States Compared

Name: LLC Tennessee.org
Price range: $$

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.