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?
$199 + $300 Tennessee state filing fee = $499 due today
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.