How to Start an LLC in Tennessee: 2024 Essential Startup Guide

How to Start an LLC in Tennessee

If you’re an entrepreneur looking to start a business in Tennessee, choosing the right business entity is one of the most important decisions you must make. Starting an LLC in Tennessee (Limited Liability Company) is popular for business owners due to its flexibility, tax benefits, and limited liability protection. This comprehensive guide will walk you through the steps to form an LLC in Tennessee and provide helpful tips to make the process as smooth as possible.

Embarking on a new business venture in Tennessee, also known as The Volunteer State, requires careful consideration of various factors, with the selection of the best Tennessee LLC formation services being a crucial decision. At LLCBase, we aim to simplify starting an LLC in Tennessee by outlining the essential steps and providing valuable insights to ensure a seamless experience for aspiring business owners.

What is an LLC

Tennessee LLC is a hybrid business structure that has gained popularity among entrepreneurs due to its unique blend of benefits from corporations and partnerships. It offers the best of both worlds by providing limited liability protection to its owners, known as members, while allowing for flexible tax treatment and simpler management structures.

  • Limited Liability Protection: One of the primary advantages of Tennessee LLC is that it shields its members from personal liability for the company’s debts, obligations, and liabilities. Suppose the company faces a lawsuit or incurs debt. In that case, the member’s personal assets, such as their homes, vehicles, and bank accounts, are generally protected and cannot be seized to satisfy their obligations. This protection is similar to a corporation, where shareholders are not held personally responsible for the company’s liabilities.
  • Pass-Through Taxation: Tennessee LLC enjoys pass-through taxation, unlike a traditional corporation, which is subject to double taxation (taxes are levied on the corporation’s profits and the shareholders’ dividends). This means that the profits and losses of the LLC are reported on the member’s individual tax returns, and taxes are paid at their personal income tax rates. This eliminates the need for the LLC to pay corporate income tax and helps members avoid double taxation.
  • Flexible Management Structure: Tennessee LLC provides flexibility in its management structure compared to a corporation. While corporations require a board of directors and officers to make decisions and manage the company, LLCs can be managed by the members or appointed managers. This flexibility allows the members to tailor the management structure to best suit the needs of the company and its operations.
  • Simplified Recordkeeping and Formalities: Tennessee LLCs are not subject to the same stringent recordkeeping and formalities as corporations. For example, LLCs are not required to hold annual meetings or maintain extensive records, such as meeting minutes and bylaws. This streamlined approach can save time and resources and simplify managing the business.

Tennessee LLC is a versatile and advantageous business structure that offers limited liability protection, pass-through taxation, flexibility in management, and simplified recordkeeping. These benefits make it an attractive option for entrepreneurs starting and growing their LLCs in Tennessee.

To support you, we have compiled a list of the best LLC formation services in Tennessee who can help you with business formation and handle other business requirements!

7 Steps to Form an LLC in Tennessee

Forming an LLC in Tennessee involves several steps. Follow them closely to ensure your Tennessee LLC is set up correctly and legally.

Step 1: Choose a Name for Your Tennessee LLC

Choosing the right name for your Tennessee LLC is crucial, representing your brand and setting the tone for your company. To ensure your chosen name is legally compliant and available for use, follow these Tennessee LLC naming guidelines:

  • Include Required Designators: As mentioned, your Tennessee LLC’s name must contain the words “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.” This requirement ensures that the public can quickly identify your business as a Limited Liability Company.
  • Avoid Prohibited Words and Phrases: Certain words and phrases are restricted or prohibited in Tennessee LLC’s name. These include terms like “bank,” “trust,” “insurance,” and any words that imply the company is affiliated with a government agency or performing services that require special licensing or approval. When choosing your business name, consult the Tennessee Secretary of State’s restricted words and phrases guidelines.
  • Ensure Uniqueness: Your chosen LLC name must be distinguishable from other registered businesses in Tennessee. This means it cannot be too similar to an existing business’s name, as it may cause confusion. Use the Tennessee Secretary of State’s business name search tool to check if your desired name is available. Remember that even if a name appears available, the Tennessee Secretary of State has the final say on its acceptability.
  • Consider Domain Availability: In today’s digital age, having a strong online presence is essential for most businesses. Before finalizing your Tennessee LLC’s name, check if the corresponding domain name is available for purchase. This will help ensure a cohesive brand identity and make it easier for customers to find your business online.
  • Trademark Search: To avoid potential legal issues, a trademark search is a good idea to ensure your chosen business name doesn’t infringe on any existing trademarks. You can search the United States Patent and Trademark Office’s (USPTO) database to see if any registered trademarks conflict with your desired name.

Once you have chosen a unique and compliant name for your Tennessee LLC, you can proceed with the registration process. It’s important to note that reserving a name with the Tennessee Secretary of State is not required to form an LLC. Still, it’s an option to secure the name before filing the Articles of Organization in Tennessee. To reserve a name, you can submit a Name Reservation Request along with a fee of $20 by mail or $20 online. The name reservation will be valid for 60 days, giving you ample time to prepare and file your LLC’s formation documents.

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Step 2: Appoint Registered Agent

Appointing Registered Agent is crucial in forming your Tennessee LLC, as they are the primary point of contact between your business and the state. The Registered Agent’s role is to ensure that your LLC complies with state regulations by receiving and forwarding important legal documents, such as lawsuits, government notices, and tax notifications. When selecting Registered Agent, consider the following:

  • Eligibility: Registered Agent must be either an individual who is Tennessee resident or a business entity registered with the Tennessee Secretary of State to provide Registered Agent services. The agent must have a physical address within the state (a P.O. box is insufficient) and be available during regular business hours to receive important documents.
  • Self-Appointment: As the business owner or one of the LLC members, you can act as your Tennessee LLC’s Registered Agent. This option can save you money on professional Registered Agent fees. However, remember that being your Registered Agent means you must be available during regular business hours at the designated address, and you must ensure that you stay up-to-date with any legal notices and deadlines.
  • Appointing a Friend or Family Member: Another option is to appoint a friend or family member as your Tennessee LLC’s Registered Agent. This person must also be Tennessee resident with a physical address in the state and be available during regular business hours. Before selecting a friend or family member as your Registered Agent, be sure they understand the responsibilities and can reliably fulfill their duties.
  • Professional Registered Agent Services: Many business owners use a professional Registered Agent service in Tennessee for their LLC. These services provide a physical address, accept and forward important documents on your behalf, and ensure compliance with state regulations. Using a professional service can offer peace of mind and save time, as they will expertly manage and track deadlines and requirements for your LLC.

Once you have appointed Registered Agent for your Tennessee LLC, their information, including their name and address, must be included in your Articles of Organization when you file with the Tennessee Secretary of State. It’s essential to regularly update your Registered Agent’s information with the state if there are any changes to ensure your business complies with Tennessee law.

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Step 3: File the Articles of Organization

Filing the Articles of Organization is critical in forming your Tennessee LLC, as it officially registers your business with the state. To ensure a smooth filing process, be prepared to provide the following information:

  • LLC Name
  • Registered Agent Information
  • Management Structure
  • Purpose of the Business
  • Organizer Information
  • Signature

Once you have gathered the necessary information, you can file the Tennessee Articles of Organization with the Tennessee Secretary of State using one of the following methods:

  • Online: The Tennessee Secretary of State offers an online filing portal known as Bizfile, which allows for a quicker and more convenient filing experience.
  • By Mail: You can mail the completed Articles of Organization and a check or money order for the Tennessee Department of Revenue filing fee to the Tennessee Secretary of State’s office.
  • In Person: If you prefer to file in person, you can submit the Articles of Organization and the filing fee at the Tennessee Secretary of State office. Note that expedited processing services are available for an additional fee.

Processing times for your LLC formation may vary depending on the submission method and the current workload of the Tennessee Secretary of State’s office. Once your Articles of Organization has been approved, you will receive a stamped copy confirming the formation of your Tennessee LLC.

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Step 4: Create an Operating Agreement

Although not required by Tennessee law, it is highly recommended for LLCs to have an operating agreement in place. This document outlines the ownership structure, member roles, and business operating rules. Tennessee LLC operating agreement can help prevent future member disputes and guide how the business should be run.

Here are some key components to consider when drafting your Operating Agreement:

  • Ownership Structure: Clearly define the ownership interests of each member in the LLC, including their percentage of ownership and capital contributions.
  • Management Structure: Specify whether your LLC will be member-managed or manager-managed.
  • Voting Rights and Decision-Making: Establish the voting rights of each member based on their ownership interest and set procedures for making business decisions.
  • Profit and Loss Allocation: Detail how profits and losses will be allocated among the members.
  • Distributions: Establish the process and frequency for distributing profits to the LLC’s members.
  • Membership Changes: Outline the procedures for adding or removing members, transferring ownership interests, and handling the death or incapacity of a member.
  • Dissolution: Specify the circumstances under which the LLC may be dissolved, as well as the process for winding down the business, selling assets, and distributing the remaining funds to the members.
  • Amendment Process: Establish a process for making changes to the Operating Agreement, including the required notice and voting requirements for amendments.

While creating an Operating Agreement may seem daunting, numerous resources are available to help you draft a comprehensive document tailored to your Tennessee LLC’s specific needs. Professional services can provide guidance and templates to ensure your Operating Agreement covers all essential aspects of your business. Once completed, all members must review, agree upon, and sign the Operating Agreement and keep a copy on file for future reference.

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Step 5: Obtain an EIN

An Employer Identification Number (EIN) is a unique nine-digit number the Internal Revenue Service (IRS) assigns to businesses in the United States. It is used to identify your Tennessee LLC for tax and reporting purposes, open a bank account, hire employees, and apply for specific licenses and permits. Here is a step-by-step guide on how to obtain an EIN for your Tennessee LLC:

  1. Determine Eligibility: Your Tennessee LLC must be in the United States or its territories to apply for an EIN. Moreover, the person applying for the EIN (known as the responsible party) must have a valid Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN).
  2. Apply Online: The easiest and fastest method to obtain an EIN for your Tennessee LLC is through the IRS’s online application process. Follow the step-by-step instructions provided by the EIN Assistant and submit your application. Once completed, you will receive your EIN immediately.
  3. Apply by Mail: If you prefer to apply for an EIN by mail, download and complete Form SS-4, “Application for Employer Identification Number.” Be sure to provide accurate and complete information about your Tennessee LLC, including its legal name, address, and responsible party. Once completed, mail the form to the address indicated in the form’s instructions. It typically takes five weeks to receive your EIN by mail.
  4. Apply by Fax: You can also obtain an EIN for your Tennessee LLC by faxing a completed Form SS-4 to the IRS at (855) 641-6935. If you provide a return fax number, you should receive your EIN within four business days.
  5. Apply by Phone (International Applicants Only): If your Tennessee LLC’s responsible party does not have an SSN, ITIN, or EIN and is located outside the United States or its territories, you can apply for an EIN by calling the IRS at (267) 941-1099.

Once you have obtained an EIN for your Tennessee LLC, keep the number secure and readily available for tax filings, business transactions, and other necessary documentation. Remember that your EIN is specific to your LLC, and you will need to obtain a new EIN if you form additional business entities or make significant changes to your LLC’s structure.

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Step 6: Register for State Taxes and Permits

Registering for applicable state taxes and obtaining necessary permits or licenses is crucial to ensure your Tennessee LLC remains compliant with state and local regulations. The requirements will vary depending on your business’s nature, location, and industry. Here are some common taxes and permits/licenses that your Tennessee LLC may need to register for or obtain:

  • Sales and Use Tax: If your Tennessee LLC sells tangible goods or provides taxable services, you may need to register for a sales tax permit with the Tennessee Tennessee Department of Revenue. This permit allows your LLC to collect customer sales tax and remit it to the state.
  • Employment Taxes: If your Tennessee LLC plans to hire employees, you must register with the Tennessee Tennessee Department of Labor and Workforce Development for employment taxes.
  • Franchise Tax: All Tennessee LLCs are subject to an annual minimum franchise tax of $100 minimum, payable to the Tennessee Department of Revenue. This tax is due even if your LLC did not conduct business or generate income during the tax year.
  • State Business Licenses and Permits: Depending on your Tennessee LLC’s industry, you may need to obtain specific business licenses or permits in Tennessee. Examples include licenses for professional services (e.g., contractors, accountants, or real estate agents), health and safety permits, and environmental permits.
  • Local Business Licenses and Permits: In addition to state requirements, your Tennessee LLC may also need to obtain business licenses or permits at the county or city level. This may include a general business license, zoning permits, or specialized licenses for specific business activities. Contact your local city or county government office to determine the necessary licenses and permits for your LLC.
  • Fictitious Business Name (DBA): If your Tennessee LLC plans to operate under a different name than the one registered with the Tennessee Secretary of State, you may need to file a Fictitious Business Name (also known as a “Doing Business As” or DBA) with the county clerk’s office in the county where your business is located.

To ensure your Tennessee LLC remains in compliance with all applicable taxes, licenses, and permits, it is essential to conduct thorough research based on your specific industry, location, and business activities. Consulting with a professional service or speaking with an attorney or accountant familiar with your industry can provide valuable guidance and assistance in navigating these requirements.

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Step 7: Open a Business Bank Account

Opening a business bank account for your Tennessee LLC is essential in establishing and maintaining a clear separation between your personal and business finances. This separation, also known as maintaining the “corporate veil,” helps ensure that the limited liability protection provided to LLC members remains intact. Here are some tips and considerations for opening a business bank account for your Tennessee LLC:

  1. Choose the Right Bank: Research various banks and credit unions in your area, comparing their business banking products, services, and fees. Look for a bank that offers business checking and savings accounts and additional services such as credit cards, lines of credit, and merchant services, if needed.
  2. Gather Required Documentation: When opening a business bank account, you will typically need to provide the following documentation:
  • A copy of your Tennessee LLC’s Articles of Organization
  • Your LLC’s Operating Agreement
  • Your LLC’s EIN (Employer Identification Number)
  • A valid government-issued photo ID for each account signer (e.g., driver’s license, passport)
  1. Open the Account: Once you have chosen a bank and gathered the necessary documentation, visit a local branch to open the account. Some banks may also offer online account opening options. Be prepared to make an initial deposit, as most banks require a minimum deposit to open a business checking or savings account.
  2. Establish Authorized Signers: Determine who must sign authority on your Tennessee LLC’s bank account. This can include LLC members, managers, or other authorized individuals. These signers will have the authority to make transactions, sign checks, and access account information on behalf of the LLC.
  3. Maintain Accurate Records: Keep detailed records of all transactions and financial activities related to your Tennessee LLC’s bank account. This will make managing your business finances more manageable and help maintain the separation between personal and business assets, ensuring the continued protection of the corporate veil.

By opening and maintaining a dedicated business bank account for your Tennessee LLC, you are taking an essential step in protecting your personal assets, simplifying financial management, and creating a solid foundation for your business’s future growth and success.

Cost of Starting an LLC in Tennessee

Here are the fees associated when starting an LLC in Tennessee:

1. Secretary of State filing fee

To form an LLC in Tennessee, you must file Articles of Organization with the Tennessee Secretary of State. The regular filing fee is $300; if you need expedited processing, it will cost an additional $100.

Tennessee Domestic LLC

  • Online Filing: $300 + $100 minimum Franchise Tax.
  • Filing Statement of Information within 1 year of registration: $50 per member.
  • By Mail: Complete the application form and mail it to Corporate Filings, 312 Rosa L. Parks Avenue, 6th Floor, William R. Snodgrass Tower, Nashville, Tennessee 37243. This costs $300 + expedited processing fee for counter drop off (non-refundable).

Tennessee Foreign LLC

  • Online Filing: $300 + $100 minimum Franchise Tax.
  • Filing Statement of Information within 1 year of registration: $50 per member.
  • By Mail: Complete the application form and mail it to Corporate Filings, 312 Rosa L. Parks Avenue, 6th Floor, William R. Snodgrass Tower, Nashville, Tennessee 37243. This costs $300.
2. Name Reservation fee

If you want to reserve your desired LLC name before filing the Articles of Organization, you can do so for a $20 (online) and $20 (offline) fee. The name reservation is valid for 4 months, giving you ample time to prepare and submit your Articles of Organization. To reserve a name, you must submit a Name Reservation Request form to the Secretary of State by mail or in person, along with the required fee.

3. Registered Agent fee

Tennessee requires all LLCs to have Registered Agent for the service of process. Registered Agent services typically cost between $50 – $150 per year, depending on the provider. Some popular Registered Agent service providers in Tennessee include Northwest Registered Agent, LegalZoom, and Incfile. Besides the annual fee, these providers offer additional services such as mail forwarding and compliance notifications.

4. Business licenses and permits

Depending on your business type and location, you may need to obtain various licenses and permits. The costs for these can vary widely, so it’s essential to research your specific business requirements. To identify the licenses and permits applicable to your business, you can use the Business Opp (https://www.tn.gov/businessopp.html) website.

5. Operating Agreement

Although not required by law, having an operating agreement for your LLC is a good idea. You can draft one yourself or enlist the help of an attorney, which can cost anywhere from $1,000 or more. The operating agreement outlines your LLC’s ownership structure, management, and procedures. It can help prevent member disputes and provide clear decision-making and profit distribution guidelines.

6. Employer Identification Number (EIN)

Most LLCs need an EIN for tax purposes, bank account opening, and hiring employees. You can obtain an EIN free from the Internal Revenue Service (IRS) by submitting an online application or mailing Form SS-4. The online application is the fastest method; you will receive your EIN immediately upon completion. If you choose to mail the form, the processing time can take up to four weeks

Ongoing Maintenance for Your Tennessee LLC

Maintaining your Tennessee LLC’s good standing with the state is crucial for avoiding penalties and ensuring the continued protection of your limited liability status. Here are the ongoing maintenance tasks and filing requirements for your Tennessee LLC:

  • Annual Franchise Tax: All Tennessee LLCs are required to pay an annual franchise tax of $100 minimum. This tax can be paid using Tennessee’s online tax portal or by mail. Failure to pay the annual franchise tax can result in penalties, interest, and suspension or forfeiture of your LLC’s good standing with the state.
  • Annual Report: Every two years, your Tennessee LLC must file an annual report with the Tennessee Secretary of State, updating the company’s information, such as Registered Agent, address, management structure, and a brief description of the business. The Biennial Report filing fee is $50 per member; the form can be filed online, by mail, or in person. The Statement of Information is due within 1 year of the initial registration of your Tennessee LLC and every two years after that. Failure to file the Statement of Information on time can result in penalties and possible suspension of your LLC’s good standing with the state.
  • Business Licenses and Permits: Ensure your Tennessee LLC maintains compliance with any necessary business licenses and permits at the state, county, or city level. This may include renewing or updating licenses and permits and adhering to reporting or inspection requirements.
  • Tax Filings: Besides the annual franchise tax, your Tennessee LLC may be subject to other state tax filings, such as sales tax, employment tax, or income tax, depending on your business activities. Stay current with all tax filing and payment deadlines to avoid penalties and maintain good standing with the state.
  • Registered Agent and Business Address: If there are any changes to your Tennessee LLC’s Registered Agent or business address, update this information promptly with the Tennessee Secretary of State. This ensures your LLC receives important legal and tax-related notices, maintaining compliance with Tennessee law.
  • Operating Agreement Updates: Periodically review and update your Tennessee LLC’s Operating Agreement to reflect any changes in the business, such as new members, changes in ownership percentages, or management structure adjustments. Keeping your Operating Agreement current helps prevent future disputes and ensures a clear understanding of the business’s rules and procedures.

By staying on top of these ongoing maintenance tasks and filing requirements, you can ensure your Tennessee LLC remains in good standing with the state, protecting your limited liability status and fostering a successful business environment.

FAQs

What is an LLC and how is it different from a corporation?
An LLC, or limited liability company, is a type of business entity that protects its owners from personal liability for the company’s debts and lawsuits. It is different from a corporation in that it has a flexible management structure and has pass-through taxation.
What does it take to start an LLC in Tennessee?
To start an LLC in Tennessee, you must file an Application for Reservation of Name with the Tennessee Secretary of State and then file Articles of Organization with the same office.
What is the filing fee to start an LLC in Tennessee?
The filing fee to start an LLC in Tennessee is $300.
Can anyone start an LLC in Tennessee?
Generally, anyone can start an LLC in Tennessee as long as they are at least 18 years old and not disqualified from doing business in the state.
Do I need an attorney to start an LLC in Tennessee?
You do not need an attorney to start an LLC in Tennessee, but some people choose to hire one to help with the formation process.
Do I need an accountant to start an LLC in Tennessee?
You do not need an accountant to start an LLC in Tennessee, but some people choose to hire one to help with tax planning and other financial aspects of their business.
How long does it take to start an LLC in Tennessee?
The processing time for LLC formation in Tennessee can vary, but it generally takes a few business days to a week for the Secretary of State’s office to process your filing.
Can I use a business name that is already taken in Tennessee?
No, you cannot use a business name that is already taken in Tennessee. You will need to choose a unique name that is not already in use.
How do I check if a business name is available in Tennessee?
You can check if a name is available for use in Tennessee by searching the online business name database maintained by the Secretary of State’s office.
Can a non-US resident start an LLC in Tennessee?
Yes, a non-US resident can start an LLC in Tennessee as long as they meet the eligibility requirements and have a valid mailing address in the state.
What are the tax implications of starting an LLC in Tennessee?
Tennessee LLCs are generally subject to state and federal income taxes, but may be eligible for certain tax incentives or exemptions depending on their industry and location.
Do I need a business license to start an LLC in Tennessee?
Some LLCs may need a business license or registration with their local government depending on their industry or location. You should check with your local government to see if this applies to you.
How many members are required for an LLC in Tennessee?
Tennessee LLCs can be owned by one or more members.
Can Tennessee LLCs have unlimited members?
Yes, Tennessee LLCs can have unlimited members.
Can Tennessee LLCs be managed by members?
Yes, Tennessee LLCs can be managed by either their members or by a designated manager.
Can Tennessee LLCs be managed by non-residents of the state?
Yes, Tennessee LLCs can be managed by non-residents of the state.
Can a single-member LLC be treated as a disregarded entity for tax purposes in Tennessee?
Yes, a single-member LLC in Tennessee can elect to be taxed as a sole proprietorship or a corporation. This is known as a disregarded entity for tax purposes.
Will I need to register my LLC in other states if I do business outside of Tennessee?
If you plan on doing business outside of Tennessee, you will need to comply with the business registration requirements of other states where you operate.
Does Tennessee have any specific laws or regulations regarding the management of LLCs?
Tennessee has specific laws that govern the management and operation of LLCs within the state. These laws are detailed in the Tennessee Limited Liability Company Act.
What annual reporting requirements do LLCs in Tennessee have?
LLCs in Tennessee are required to file an Annual Report with the Secretary of State’s office and pay a $50 fee by the end of each calendar year.
Are there any ongoing fees or taxes for LLCs in Tennessee?
Tennessee LLCs are not subject to an annual franchise tax like corporations, but they may be subject to state and local taxes in the same way as any other business entity.
Can I change the name of my Tennessee LLC after formation?
Yes, you can change the name of your Tennessee LLC after formation by filing a Certificate of Amendment with the Secretary of State’s office.
Can I change the management structure of my Tennessee LLC after formation?
Yes, you can change the management structure of your Tennessee LLC after formation by filing a Certificate of Amendment with the Secretary of State’s office.
Can Tennessee LLCs convert to other business entities, such as corporations or partnerships?
Yes, Tennessee LLCs can convert to other business entities by filing the appropriate paperwork and meeting any additional eligibility requirements.
Do Tennessee LLCs have limited liability protection outside of the state?
The limited liability protection of a Tennessee LLC may be recognized in other states, but it is not guaranteed. You should consult with an attorney to determine the liability protection of your LLC outside of Tennessee.
Are there any restrictions on the types of businesses that can form an LLC in Tennessee?
Tennessee LLCs can generally be formed by any type of business, with the exception of certain licensed professionals like lawyers, doctors, and accountants.
Does Tennessee allow series LLCs?
Yes, Tennessee allows series LLCs, which allow business owners to create separate series within a single LLC for different lines of business or projects.
How do I dissolve an LLC in Tennessee?
To dissolve an LLC in Tennessee, you will need to file Articles of Dissolution with the Secretary of State’s office along with any necessary property tax clearance certificates.
What is an LLC in Tennessee?
An LLC, or limited liability company, is a business structure that combines the simplicity and tax efficiencies of a partnership with the limited liability protection of a corporation in Tennessee.
How do I start an LLC in Tennessee?
To form an LLC in Tennessee, you’ll need to file Articles of Organization with the Tennessee Secretary of State’s office.
Can I start an LLC in Tennessee without a lawyer?
Yes, you can start an LLC in Tennessee without a lawyer. You can file the Articles of Organization yourself or use an online filing service.
How much does it cost to start an LLC in Tennessee?
The filing fee to start an LLC in Tennessee is $300.
What is the filing fee for the Tennessee LLC articles of organization?
The filing fee for the Tennessee LLC Articles of Organization is $300 online and $50 for paper filings.
How do I check if my LLC name is available in Tennessee?
You can check if your LLC name is available in Tennessee by using the name search tool on the Tennessee Secretary of State website.
Can my LLC have a name with “Tennessee” in it?
Yes, your LLC can include the name “Tennessee” as long as it is not misleading to the public.
Can my LLC have multiple names or a DBA in Tennessee?
Yes, your LLC in Tennessee can have multiple names or a “Doing Business As” (DBA) name.
Can I have an LLC in Tennessee if I’m not in the state?
Yes, you can have an LLC in Tennessee even if you are not a resident or in the state.
Do I need a registered agent in Tennessee to start an LLC?
Yes, you need a registered agent in Tennessee when forming an LLC.
Can I be my own registered agent in Tennessee?
Yes, you can be your own registered agent for your LLC in Tennessee, but it is recommended to use a professional registered agent service.
What are the requirements to be a registered agent in Tennessee?
The requirements to be a registered agent in Tennessee include being a resident of the state, having a physical street address, and being available during normal business hours.
What types of businesses can form an LLC in Tennessee?
Any type of business, including for-profit and non-profit, can form an LLC in Tennessee.
What are the advantages of an LLC in Tennessee?
The advantages of an LLC in Tennessee include limited liability protection, flexibility in management, and pass-through taxation.
Do I need an operating agreement for my LLC in Tennessee?
While Tennessee does not require an operating agreement for an LLC, it is highly recommended to have one.
Can I use a PO Box as my LLC’s address in Tennessee?
No, a PO Box cannot be used as the primary address of your LLC in Tennessee.
Can I be the only member of my LLC in Tennessee?
Yes, you can be the only member of your LLC in Tennessee.
Do I need an EIN for my LLC in Tennessee?
Yes, you need an EIN (Employer Identification Number) for your LLC in Tennessee if you have employees or if you plan to open a bank account.
How do I apply for an EIN in Tennessee?
You can apply for an EIN for your LLC in Tennessee through the IRS website.
Do I need business licenses or permits to operate my LLC in Tennessee?
Depending on the nature of your LLC’s business, you may need to apply for business licenses or permits to operate in Tennessee.
What taxes does my LLC need to pay in Tennessee?
Your LLC in Tennessee may need to pay state taxes, federal taxes such as income tax, and sales taxes if applicable.
Can out-of-state LLCs do business in Tennessee?
Yes, out-of-state LLCs can do business in Tennessee, but they need to be registered as a foreign LLC with the state.
What happens if I don’t file an annual report for my LLC in Tennessee?
If you don’t file an annual report for your LLC in Tennessee, your LLC will be administratively dissolved.
When is the deadline for filing an annual report for my LLC in Tennessee?
The deadline for filing an annual report for your LLC in Tennessee is the first day of the fourth month after the end of your fiscal year.
Can I change the name of my LLC in Tennessee?
Yes, you can change the name of your LLC in Tennessee by amending your Articles of Organization.
Can I dissolve my LLC in Tennessee?
Yes, you can dissolve your LLC in Tennessee by filing Articles of Dissolution with the Secretary of State’s office.
Can I reinstate an administratively dissolved LLC in Tennessee?
Yes, you can reinstate an administratively dissolved LLC in Tennessee by filing an Application for Reinstatement and paying the fee.

Also Read

How Fast Can I Form an LLC in Tennessee

Forming an LLC in Tennessee is an exciting venture for many entrepreneurs looking to establish their business in the state. With its business-friendly environment and low tax rates, Tennessee has become a popular destination for startups and small businesses alike. However, one of the most pressing questions that prospective business owners often ask is, “How fast can I form an LLC in Tennessee?”

The good news is that forming an LLC in Tennessee can be a relatively quick and straightforward process compared to other states. The state has streamlined the process in recent years to make it more efficient and user-friendly for business owners. However, the exact timeline for forming an LLC in Tennessee can vary depending on several factors, such as the complexity of your business structure and the number of applications being processed at the time.

The first step in forming an LLC in Tennessee is choosing a suitable name for your business. The name must be unique and not already in use by another entity in the state. Once you have selected a name, you must file Articles of Organization with the Tennessee Secretary of State’s office. This document officially establishes your LLC and includes important information such as the name of your business, its address, and the names of its members.

After filing the Articles of Organization, you must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is a unique nine-digit number that identifies your business for tax purposes. You will need this number to open a business bank account, hire employees, and file taxes at the federal level.

Once you have obtained your EIN, you can then file for any necessary business licenses and permits at the state and local levels. Tennessee does not have a statewide business license requirement, but certain industries, such as healthcare and construction, may require additional permits or certifications to operate legally.

Overall, the process of forming an LLC in Tennessee can take anywhere from a few days to a few weeks, depending on the complexity of your business structure and the accuracy of your paperwork. It is essential to make sure that all information provided in your Articles of Organization is correct and up-to-date to avoid any delays in the approval process.

In conclusion, forming an LLC in Tennessee can be a relatively quick and straightforward process for many entrepreneurs. By following the necessary steps and ensuring that all paperwork is accurate, you can establish your business in the state and start pursuing your entrepreneurial dreams as soon as possible. With its business-friendly environment and supportive infrastructure, Tennessee is a great place to launch and grow a successful business.

Conclusion

Starting Tennessee LLC can be seamless and efficient when adhering to the steps outlined in this comprehensive guide. By carefully selecting the appropriate business entity and diligently taking the necessary steps to form an LLC in Tennessee, you set a strong foundation for your enterprise. Furthermore, ensuring ongoing compliance with state regulations, including timely filing of required documents and payment of associated fees, will help maintain the good standing of your LLC. We recommend a professional LLC formation service, ZenBusiness that offers hassle-free LLC formation at $0.

By following these guidelines, entrepreneurs can confidently embark on their journey of building a thriving business in The Volunteer State. Visit LLCBase for more valuable information about successfully starting an LLC in Tennessee.

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