Want to start an LLC in Tennessee? Check out this handy guide.
Ready to start your business? Plans start at $0 + filing fees.
updated November 21, 2023 · 6min read
A limited liability company (LLC) offers liability protection and tax advantages, among other benefits for small businesses.
LLC formation in Tennessee is easy. Just follow these six steps, and you'll be on your way.
You'll need to choose a name to include in your articles before you can register your LLC.
Names must comply with Tennessee's naming requirements. The following are the most important requirements to keep in mind:
See a complete listing of Tennessee's naming rules.
Tennessee requires you to appoint a registered agent for your LLC.
A registered agent is the person or entity authorized to receive service of process and other official legal documents and notices on behalf of your LLC.
A registered agent can be a person (including yourself or an employee of your LLC) or an entity that offers a registered agent service. They must meet the following criteria:
The articles of organization is a document that officially establishes your LLC by laying out basic information about it.
Prepare articles of organization and file them with the Tennessee Secretary of State to register your Tennessee LLC properly. Though it sounds like a big job, that simply means filling out a relatively simple online form and submitting it. You can also send it by mail.
To prepare your articles, you'll usually need the following information:
Once you file your articles, the secretary of state will review the filing. If the articles are approved, the LLC becomes a legal business entity.
The state will issue you a certificate that confirms the LLC formally exists after the LLC's formation documents are filed and approved.
This certificate will allow the LLC to obtain an Employer Identification Number (EIN), business licenses, and business bank account.
An operating agreement is a document that outlines the way your LLC will conduct business.
Whether or not your state requires it, an operating agreement is an essential component of your business. Having a readily accessible, written operating agreement is helpful for various reasons, including settling disputes that may arise over financial agreements and other potential litigation. Without an agreement in place, the courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members.
The operating agreement can include, but is not limited to, the following:
The nine-digit Employer Identification Number (EIN) is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS.
The purpose of an EIN is to assist with the following:
Registering your LLC gives you a legal foundation to conduct business. Plan to keep your LLC compliant and in active status on the state's website.
All Tennessee LLCs must file an annual report. The annual report is due on the first day of the fourth month following the LLC's fiscal year closing.
Tennessee's LLCs may be required to make quarterly tax payments. If you are selling goods, you will have to register with the Tennessee Department of Revenue. LLCs in Tennessee are also required to pay franchise and excise taxes annually. These taxes are paid every year to the Department of Revenue. They are due on or before the 15th day of the fourth month following closing of the LLC's books. You also need to maintain a registered agent for your business.
A registered LLC also makes it possible for you to do the following:
by Rudri Bhatt Patel
Rudri Bhatt Patel is a former attorney turned writer and editor. Prior to attending law school, she graduat...
'Inc.' in a company name means the business is incorporated, but what does that entail, exactly? Here's everything you need to know about incorporating your business.
November 21, 2023 · 10min read
Want to talk to your parents or grandparents about estate planning, but feel like the topic is taboo? You're not alone. Discussions about estate planning are difficult for many families. Use our tips to broach the subject with sensitivity.
November 28, 2023 · 2min read
Writing a will is one of the most important things you can do for yourself and for your loved ones, and it can be done in just minutes. Are you ready to get started?
November 21, 2023 · 4min read