How to Form an LLC in Tennessee: Starting an LLC in TN
How to Form an LLC in Tennessee: Starting an LLC in TN
Blog Article
Establishing an Limited Liability Company in Tennessee|Setting up an business in Tennessee may appear difficult, but it does not need to be overwhelming. It's best to cover all necessary actions, from securing the perfect business title to ensuring you're compliant with government rules. Knowing the necessary paperwork and protecting your assets early can prevent issues in the future. Prior to paperwork, though, there’s a critical first decision that sets the groundwork for what comes next.
Choosing a Name for Your Tennessee LLC
Before you can officially form your LLC in Tennessee, you'll need to choose a unique name that complies with state requirements. Your name must include "Limited Liability Company" or an abbreviation like "LLC."
Ensure the name isn’t already taken or too similar to another company by searching the Tennessee Secretary of State’s online database. Avoid restricted words that could cause confusion with government agencies, such as “bank” or “trust,” unless you get special permission.
To secure your name during the process, file a reservation request and pay the applicable fee, holding it for up to 120 days.
Appointing a Registered Agent
Your LLC needs a registered agent in Tennessee to handle legal notices and official correspondence.
The registered agent must have a physical street address in Tennessee, no P.O. boxes. You can serve as your own agent, hire a professional service, or designate another trusted individual or company.
Make sure your agent is dependable and available during regular hours to prevent missing critical notices.
Submitting Your Tennessee LLC Formation Document
Start by submitting the Articles of Organization to Tennessee to officially create your LLC.
Fill website out Form SS-4220 online or send a paper copy to the Tennessee Secretary of State’s office. It requires your LLC name, address, registered agent info, management structure, and intended duration.
Ensure accuracy when submitting; the fee of $300 must be paid, either online or via check. After approval, you’ll receive confirmation, and your LLC is officially recognized in Tennessee.
Creating an Operating Agreement
Though optional, having an operating agreement is a smart move to define management and ownership specifics. This document should outline management responsibilities, profit distribution, member duties, and procedures for decision-making or dissolving the LLC.
A well-drafted operating agreement can prevent disputes and show professionalism. It’s especially important if your LLC has multiple members. All members should review and sign the document, and keep it with your business records.
Meeting Ongoing Requirements and Remaining Compliant
After formation, you need to stay up-to-date with Tennessee’s annual requirements to avoid penalties.
You’ll need to file an annual report along with a fee each year to maintain active status in Tennessee.
Keep accurate financial records, and update your registered agent info if it changes. Stay aware of deadlines to file reports and pay taxes.
Final Tips
Getting your LLC up and running in Tennessee is simple with these steps: pick a unique name, choose a good registered agent, file the formation documents, and create an operating agreement. Keep up with annual reports and licenses to stay compliant, and you’re ready for business growth! Report this page