If you’re considering starting an LLC in Tennessee, you’re in luck! Tennessee offers a business-friendly environment, making getting your business up and running smoothly easy. With many new companies registered recently, Tennessee consistently ranks among the top states for starting a business. And the absence of personal income tax is a bonus. Rest assured, this guide will cover everything you need to know about how to start an LLC in Tennessee, from requirements and steps to tax considerations.
Step 1: Name your Tennessee LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Obtain an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Tennessee LLC
Checking if your chosen business name is available is crucial when starting your business. You can do this through the Name Availability Search Engine on the Secretary of State’s Division of Business Services website or by calling 615-741-2286. Your business name must be unique and distinguishable from other registered entities in the state. Also, ensure your company name includes “limited liability company” or an accepted abbreviation like “LLC” or “L.L.C.” If you plan to use certain words like “bank” or “trust,” you’ll need permission from the Tennessee Department of Financial Institutions.
Here’s a complete listing of Tennessee’s naming rules.
Additional considerations:
Reserve your name: If you’ve confirmed your name is available, you can reserve it for 120 days by submitting Form SS-9425, the Application for Name Reservation. The fee is $20 and should be payable to the Tennessee Secretary of State. You can send your payment via cashier’s check or money order. Deliver your completed form in person or mail it to 312 Rosa L. Parks Ave. FL 6, Nashville, TN 37243.
If mailing, include the form and payment in the same envelope and write “Tennessee Secretary of State, ATTN: Corporate Filing” above the address.
Website domain: Securing your website domain early on is wise, even if you plan to create a webpage later. Checking the availability of your desired domain name before finalizing your LLC name ensures you have the option for future use.
Step 2: Choose a Registered Agent
In Tennessee, LLCs must choose a registered agent to receive legal documents on the business’s behalf and forward them accordingly. Registered Agents can be you, another LLC member, or an employee, as long as they’re at least 18 years old and have a physical address (referred to as the “registered office”) within Tennessee.
You can hire a registered agent for added privacy and reliability, primarily if you operate in multiple states. These typically cost between $100 and $300 annually, so evaluate your options carefully to ensure you’re getting value for your money.
Step 3: File an Articles of Organization
When filing an LLC in Tennessee, the key document to understand is the “Articles of Organization.” This document requires details such as:
- The LLC’s name,
- Principal in-state office address,
- Number of members,
- Registered agent’s information,
- The effective date of the articles,
- Details about the LLC’s business operation and duration
- Whether forming a single-member or multiple-member LLC,
You must file this paperwork via mail or the state’s online system. The filing fee is $50 per LLC member, and a minimum of $300 and a maximum of $3,000.
Foreign LLCs can obtain authority to transact business in Tennessee by filing Form SS-4233, Application for Certificate of Authority. The fees and procedures for new Tennessee LLCs are the same.
Step 4: Received a Certificate From the State
Once the state approves your LLC’s formation documents, you’ll receive a certificate affirming the official existence of your LLC. This certificate enables your LLC to acquire an Employer Identification Number (EIN), open a business bank account, and obtain a business license.
Step 5: Obtain an Operating Agreement
Creating an operating agreement is highly advisable when starting an LLC in Tennessee. This document secures LLC members from personal liability and documents crucial decisions. Your operating agreement should include the following:
- The business structure
- Member responsibilities and LLC operations.
- Profit and loss-sharing mechanisms
- Procedures for addressing member changes
- Voting protocols and conflict resolution procedures in case of tie votes.
Step 6: Get an Employer Identification Number
LLC must obtain an IRS employer identification number (EIN) unless you form a single-member LLC. This number is necessary for business activities like filing employment tax returns, establishing business credit, and opening a business bank account.
The person filling out the paperwork requires a valid taxpayer identification number, an individual taxpayer identification number, or an EIN. They must be a natural person and either own or control the LLC.
You can apply online, and upon completion, you’ll receive a valid EIN for your business.
Following these steps, start your LLC in Tennessee and begin operating your business.
LLC State Guides
FAQs:
What is The Cost of Starting an LLC in Tennessee?
Starting your LLC in Tennessee incurs a state fee of $50 per existing member, with a minimum total cost of $300 and a maximum of $3,000.
What is The Process For Updating an LLC Address in Tennessee?
To update the principal address of your Tennessee LLC, complete the articles of amendment form provided by the Tennessee Secretary of State and submit it along with a $20 fee. You can do this by mail or at the Secretary of State’s office.
Is it Possible To File an LLC Online in Tennessee?
Yes. You can submit your LLC filing online in Tennessee through the Secretary of State’s website and pay the fee using a credit card. Please note that an additional convenience fee may be for credit card processing and online transactions.
