LLC in TN: Everything You Need to Know
Creating an LLC in TN is an easy process that yields the tax benefits of a partnership combined with the corporate umbrella of personal asset protection.3 min read
2. Articles of Organization
3. Creating Your Name
4. Registered Agent
5. Tax Regulations
6. Dividing Assets
When creating an LLC in TN, it is an easy process that yields the tax benefits of a partnership combined with the corporate umbrella of personal asset protection. Tennessee has certain LLC requirements that are unique when compared to other states. First, you must do the following:
- Register with the TN Secretary of State with the necessary paperwork
- Pay fees
- Adhere to all formation and naming mandates
What Kind of Documentation Do I Need to Manage my LLC?
- Operating Agreement
- LLC Membership Certificate
- LLC Membership Interest Bill of Sale
- LLC Meeting Minutes
Before starting, you need to provide basic information to complete the LLC process. You need to know:
- The name of your LLC
- Your business address
- The person who formed and will manage the LLC
- Your specific industry
- Your business Statement of Purpose
Articles of Organization
All applicants must file articles of organization with the secretary of state office. This is the document that registers and manifests your LLC into existence. Your articles of organization requires the following information:
- LLC Name and Primary Business Address
- Name of Registered Agent and Agent Address
- Added Designation (Ex. Professional LLC)
- Fiscal Year Close Month
- Effective Date
- Management Structure: Member-Managed, Director-Managed or Manager-Managed
- Member Numbers During Registration Time
- Duration of LLC if the Business Has a Limited Lifespan
Once you submit all documentation, you must pay the filing fee. The filing fee depends on a number of factors, but the minimum fee is $300 and the maximum is $3,000. Each member costs $50 for registration. The processing times vary from three to five business days, and no expedited service is available.
Creating Your Name
Under state law, your LLC must include words such as “Limited Liability Company” or abbreviations in the form of “LLC” or “L.L.C.” The requirements for naming your LLC may be confusing, but the best way to get through the process is to ensure your LLC name is unique from other business names.
Further, you should include specific words used in the industry your business is part of, so you can attract the right type of clientele to your business. When choosing, keep in mind that there are certain words that are restricted and may require additional licensure. The following words are usually restricted:
Further, an LLC created by doctors or attorneys will require additional state certification to conduct business in TN. Also, other words are entirely forbidden, such as:
- Secret Service
State authorities will reject any name that associates a business with a state or federal agency. You may also register your name for up to four months by filing an Application for Reservation of Limited Liability Company Name with the secretary of state office. The reservation application must be sent via mail, and you must pay a filing fee of $20.
All LLCs in TN must have a registered agent in place. A registered agent is an individual or entity that accepts any legal paperwork on behalf of your LLC in the event of litigation. An agent must be a person who resides in TN or a business that is authorized to conduct business in the state. In addition, the agent must have a physical street address in TN.
Your LLC must comply with certain tax guidelines. For example, you will need an employer identification number (EIN), which is a number that the IRS uses to identify and tax your business. You will need an EIN if your business has more than a single member, even if there are no employees. For sole members, you must get an EIN if you intend to hire employees or choose to have your LLC taxed as a corporation.
In certain cases, you will need to collect sales taxes. If so, you’ll need to register with the TN Department of Revenue. Further, TN levies excise and franchise taxes on many LLCs. You may register via mail or online if you need to register to collect sales taxes.
Most importantly, you need to divide your personal business assets to manage your LLC effectively and gain personal protections. Further, dividing your assets makes tax and accounting an easier process. In addition, getting a business credit card places a firmer divide between your personal and business operations.
To find out more about creating an LLC in TN, submit your legal inquiry to our UpCounsel marketplace. UpCounsel’s lawyers have graduated from some of the top law schools in the county and will rely on their expertise and savvy in guiding you through the LLC process in TN. In addition, our lawyers will ensure you remain compliant under state tax and licensure laws, so you don’t have to worry about any missteps as you manage your business.