Starting an LLC in Tennessee: A Step-by-Step Guide

Are you thinking of starting a Limited Liability Company (LLC) in Tennessee? An LLC is a popular business structure that offers personal liability protection and tax benefits. In this article, we will guide you through the process of how to get an LLC in Tennessee.

Why Form an LLC in Tennessee?

Tennessee is a business-friendly state with a low cost of living and a favorable tax climate. Forming an LLC in Tennessee can provide several benefits, including:

• Personal liability protection: An LLC protects your personal assets from business debts and lawsuits.
• Tax benefits: LLCs are pass-through entities, which means that business income is only taxed at the individual level, not at the business level.
• Flexibility: LLCs can have multiple owners (known as members) and can be managed by either the members or a designated manager.

Step 1: Choose a Business Name

The first step in forming an LLC in Tennessee is to choose a unique and memorable business name. Your business name must include the words "Limited Liability Company" or the abbreviation "LLC". You can check the availability of your desired business name by searching the Tennessee Secretary of State's database.

Step 2: File Articles of Organization

Once you have chosen a business name, you must file Articles of Organization with the Tennessee Secretary of State's office. The Articles of Organization must include the following information:

• Business name and address
• Name and address of the registered agent
• Name and address of the organizer
• Purpose of the LLC

The filing fee for the Articles of Organization is $300. You can file online or by mail.

Step 3: Create an Operating Agreement

An Operating Agreement is a document that outlines the ownership and management structure of your LLC. It should include the following information:

• Ownership structure: Who are the members, and what are their ownership percentages?
• Management structure: Who will manage the LLC, and what are their roles and responsibilities?
• Decision-making process: How will decisions be made, and what is the voting process?

The Operating Agreement is not filed with the state, but it is an important document that outlines the rules and procedures for your LLC.

Step 4: Obtain an EIN

An Employer Identification Number (EIN) is a unique number assigned to your LLC by the IRS. You will need an EIN to open a business bank account, file taxes, and hire employees. You can apply for an EIN online or by mail.

Step 5: Obtain Business Licenses and Permits

Depending on the type of business you are operating, you may need to obtain additional licenses and permits. For example, if you are operating a food truck, you will need a food service permit. Check with the Tennessee Department of Commerce and Insurance for a list of required licenses and permits.

Step 6: Open a Business Bank Account

Once you have obtained an EIN and any necessary licenses and permits, you can open a business bank account. This will help you keep your personal and business finances separate and make it easier to manage your business expenses.

Conclusion

Forming an LLC in Tennessee is a relatively straightforward process that requires several steps. By following these steps, you can establish a legitimate business entity that will protect your personal assets and provide tax benefits. Remember to choose a unique business name, file Articles of Organization, create an Operating Agreement, obtain an EIN, obtain business licenses and permits, and open a business bank account.

Additional Resources

For more information on forming an LLC in Tennessee, you can visit the Tennessee Secretary of State's website or consult with an attorney or accountant. Additionally, you can check out the following resources:

• Tennessee Secretary of State's website: https://sos.tn.gov
• Tennessee Department of Commerce and Insurance: https://www.tn.gov/commerce
• IRS website: https://www.irs.gov