How to Start an LLC in Tennessee: Starting an LLC in Tennessee
How to Start an LLC in Tennessee: Starting an LLC in Tennessee
Blog Article
Starting an Limited Liability Company in the Volunteer State|Establishing an business in the Volunteer State might seem complicated, but it does not need to be daunting. It's best to manage all necessary actions, from choosing the ideal business title to making sure compliance with local rules. Getting familiar with what documents are required plus how to protect your business early can save you headaches later. Prior to submitting documents, though, there’s a key first decision that sets the groundwork for what comes next.
Choosing a Name for Your Tennessee LLC
The first step in forming your LLC is selecting a name that’s available and meets Tennessee regulations. 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.
If the name is free, you can reserve it for 120 days by submitting a reservation application and paying a fee.
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.
Filing the Articles of Organization
The next step is to file the Articles of Organization to officially form your Tennessee LLC.
Complete and submit Form SS-4220 either online via the Tennessee Secretary of State’s portal or by mailing the completed form. 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
Even though Tennessee law doesn’t mandate it, drafting an operating agreement helps formalize your LLC’s structure. This document should outline management responsibilities, profit distribution, member duties, and procedures for decision-making or dissolving the LLC.
Having a clear operating agreement is key to preventing disagreements and establishing your LLC’s professionalism. All members should review and sign the document, and keep it with your business records.
Meeting Ongoing Requirements and Remaining Compliant
Once your LLC is formed, ongoing compliance is essential to keep your business in good standing.
You’ll need to file an annual report along with a fee each year to maintain active status in Tennessee.
Ensure your records are here up-to-date, and send in annual reports on time to avoid penalties or administrative dissolution.
Summary
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