How to Create an LLC in Tennessee: Establishing an LLC in TN
How to Create an LLC in Tennessee: Establishing an LLC in TN
Blog Article
Launching an business in the Volunteer State|Establishing an business in the Volunteer State may appear challenging, but it isn't hard. It's best to manage all necessary actions, from registering the perfect name to ensuring compliance with government requirements. Getting familiar with what documents are required and how to protect your assets ahead of time may prevent issues down the line. Before you even think about paperwork, though, there’s a key initial decision that establishes the groundwork for all subsequent steps.
How to Pick Your Tennessee LLC Name
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."
It can't match or be confusingly similar to another business registered in Tennessee, so check availability using 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.
Once you find an available name, consider reserving it for 120 days by filing an application and paying the reservation fee.
Appointing a Registered Agent
Every Tennessee LLC must appoint a registered agent to receive legal and government documents.
The agent must have a physical Tennessee address—P.O. boxes aren’t allowed. You can serve as your own agent, hire a professional service, or designate another trusted individual or company.
It’s essential that your agent is reachable during business hours to accept official documents.
How to Legally Establish Your LLC in Tennessee
Start by submitting the Articles of Organization to Tennessee to officially create your LLC.
You may file the form online through the Tennessee SOSDirect portal or mail a paper copy. It requires your LLC name, address, registered agent info, management structure, and intended duration.
Review all details carefully; errors can cause delays. The filing fee is $300, payable online or by check. After approval, you’ll receive confirmation, and your LLC is officially recognized in Tennessee.
Developing Your LLC Member 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, read more 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.
Maintaining Your Tennessee LLC’s Good Standing
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 up-to-date, and send in annual reports on time to avoid penalties or administrative dissolution.
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