How to Form a Limited Liability Company (LLC) in Tennessee
If you’re ready to start a business in Tennessee, an LLC in Tennessee may be the perfect choice. This type of entity offers flexibility in how profits are distributed among members and provides liability protection to the owner’s personal assets. To form an LLC, you’ll need to register your business with the state and obtain an EIN (tax ID number). There are also a variety of fees associated with starting an LLC, including those for publishing a notice in the newspaper, obtaining a tax registration certificate from local government agencies, and maintaining a registered agent who receives legal documents on behalf of the business.
Choosing a Name
You’ll need to pick a name that’s unique and memorable. You’ll also need to ensure the name complies with TN state law. For example, it must contain the phrase “limited liability company” or the abbreviation “LLC.” You can check the availability of a business name through a public database before filing your articles of organization.
Operating Agreement
You should create an operating agreement that details how your LLC will be run. This is an internal document that doesn’t need to be filed with the state, but it’s important for setting out how voting will work, how membership transfers occur, and other key issues. You can use a free operating agreement template or contact a lawyer for help.
Keeping your LLC in good standing with the state is an ongoing responsibility. You’ll need to file annual reports and pay state taxes. In addition, you may need to submit other federal and state paperwork, such as an Employee Withholding Tax (EWT) report and a Beneficial Ownership Information Report (BOI).