We’ll cover all the steps and even tell you about more things you’ll need to do after your LLC filing in Tennessee.
Are you thinking about forming a limited liability company (LLC) in Tennessee? We’ll cover all the steps and even tell you about more things you’ll need to do after your LLC filing. If you have more questions, you can always ask a lawyer for small business advice.
Tennessee’s business climate is favorable. The Volunteer State doesn’t have a personal income tax, and its state and local taxes are some of the nation’s lowest. The cost of living is lower than the national average. It’s also a right-to-work state. Tennessee’s location is a plus, with major interstates running through it.
As a Tennessee LLC owner, you’ll enjoy very strong personal liability protections. If you are ready, let’s find out how to start an LLC in Tennessee.
The first step for forming your Tennessee LLC is choosing a name. That might sound simple, but you have to follow the Secretary of State’s naming rules. You always have to include “Limited Liability Company” or “LLC” in the name. You also have to be sure the name you choose is distinguishable from other active or reserved business names in the state.
To find out if the name you want to use is already taken, just follow these simple steps:
Helpful tip: You’ll probably want a website for your new business, and you may want social media accounts for advertising. When you’re thinking about a name for your LLC, also check domain names and social media platforms for availability.
An LLC’s registered agent is a person or company that’s the official point of contact between the state and the business. They might receive tax forms, legal notices, and other government mail. Your LLC has to have a registered agent who meets certain requirements, which are:
One of the LLC’s owners can be its registered agent, or you might hire another person or company for the position. Let’s look at the pros and cons of those choices.
Now, you’re ready to file your Articles of Organization with the Tennessee Secretary of State. You can check online for up-to-date business forms.
Tennessee has an Articles of Organization for LLCs fillable form (SS-4270) online. LegalShield members can ask a provider lawyer to review the document before submitting it.
When you get ready to file, you have to pay a filing fee. The minimum fee is $300, with each additional member (LLC owner) adding another $50; $3,000 is the maximum filing fee to start an LLC in Tennessee.
You can file your Articles of Organization online, by mail, or in person.
You’ll have to say in your Articles of Organization whether your LLC is member-managed or manager-managed. Let’s look at the differences between these operational structures.
Tennessee doesn’t require LLCs to have operating agreements, but they’re still recommended because they help to protect your limited liability status. This document is like a handbook for your LLC — it explains how you operate and lays out the LLC’s rules and financial structure. If questions or arguments come up, just refer to your operating agreement.
You can customize your operating agreement as much as you want, but most include:
Banks and lenders will probably ask for a signed operating agreement. You might not be able to open accounts or apply for a loan without it.
Every LLC is different. Yours may have specific needs. A lawyer can give you advice about how to customize your operating agreement and review it when you’re done. You do not have to pay expensive consultation fees if you’re a LegalShield Small Business Plan member. Your membership includes consultations, document reviews, and more.
A federal Employer Identification Number (EIN) is a nine-digit number that identifies your business. You’ll use it when you file taxes, open business bank accounts, hire employees, and apply for business licenses.
You can get your EIN in minutes using the IRS EIN Assistant tool. It’s free, and the IRS will issue your EIN immediately, if approved. All you have to do is answer a few questions and submit your application.
Tennessee LLCs have to pay different kinds of taxes. Review your requirements and, if needed, register with the county and state governments to open accounts. The Tennessee Department of Revenue handles tax accounts for the state:
At the county level, you may have to pay tangible personal property tax.
You may also need business licenses. Counties require them, and some cities do, too. You can apply for them with your county clerk, and it's recommended that you check with your city government to see if you need a city business license. Depending on your industry or profession, you might need more licenses or permits. Construction contractors, medical providers, and retail alcohol sellers are examples.
You’ll need to pay your taxes and renew your licenses regularly. Check the requirements for each of your accounts carefully. Track the reporting and renewal deadlines and be ready to pay fees.
All this may seem overwhelming, and that’s understandable. A lawyer or CPA can be of assistance when you are figuring out which accounts you need to open.
Now that you’ve formed and registered your LLC, you may have a few additional things to do before you begin operations. Your needs are as unique as your business is, so you can make changes to this checklist. It’s a good place to start, though:
If you hire employees, be ready to report and pay employment taxes to the IRS.
Congratulations on deciding to form your LLC in Tennessee! Of course, you’ll have plenty of legal questions as your small business grows. With a LegalShield membership, you’ll get the legal guidance you need at a price you can afford.
Our members get access to a provider law firm for document reviews, tax advice, debt collection assistance, and consultations. Choose your LegalShield Small Business Plan today.
The Articles of Organization filing fee for Tennessee LLCs is a minimum of $300. You’ll pay $50 more for each additional member, up to the $3,000 maximum. You may have fees for a third-party registered agent, if you choose, and fees for business licenses and permits.
You can form a Tennessee LLC without a lawyer, but it’s a good idea to ask one to help you do research and review your LLC documents. That way, you know you’re doing things the right way.
Time can vary, but if you file online, the state may approve your Articles of Organization in just a few business days. Filing by mail or in person means you’ll have a longer wait.
Yes, Tennessee allows single-member LLCs. You’ll still have to complete the same registration steps that multiple-member LLCs do. Forming an LLC instead of a sole proprietorship gives you limited personal liability for business finances.
Pre-Paid Legal Services, Inc. (“LegalShield”) provides access to legal services offered by a network of provider law firms to LegalShield members through membership-based participation. Neither LegalShield nor its officers, employees or sales associates directly or indirectly provide legal services, representation, or advice. Small Business Legal Plans and certain benefits are not available in all states. See a Small Business Legal Plan contract for a specific state for complete terms, coverage, amounts, and conditions. The information made available in this blog is meant to provide general information and is not intended to provide legal advice, render an opinion, or provide a recommendation as to a specific matter. The blog post is not a substitute for competent legal counsel from a licensed professional lawyer in the state or province where your legal issues exist, and you should seek legal counsel for your specific legal matter. Information contained in the blog may be provided by authors who could be a third-party paid contributor. All information by authors is accepted in good faith, however, LegalShield makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information.
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Your LLC won’t officially exist until the state accepts your Articles of Organization. You’ll need the filed document to open LLC bank accounts, apply for business licenses, and sign contracts.
While this guide gives you useful information about paying yourself from an LLC, it is recommended that you consult with a CPA or an accountant so your LLC is set up with the best tax classification to meet your needs and maintain compliance with IRS regulations.
Running a corporation, no matter how small, requires ongoing documentation. Without a comprehensive record book, it’s harder to find and follow your corporate rules and meet reporting requirements.
Before you start ordering business cards or designing your logo, you need to find out if the business name you want to use is actually available.
The total cost to trademark a name can increase based on how many trademark classes you want to enter and whether you get professional advice.
One of the first big paperwork steps is filing Articles of Incorporation. In this guide, we’ll walk through what Articles of Incorporation are, what to include, how to file them, and a few common mistakes to avoid along the way.
