What are the steps to start an LLC in Tennessee?

A step-by-step guide to starting an LLC in Tennessee

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What are the steps to start an LLC in Tennessee?

In Tennessee, forming a Limited Liability Company (LLC) is a relatively straightforward process. An LLC is a business structure that offers personal liability protection to its owners, known as members. This means that the personal assets of the members are protected from business debts and liabilities.

Step 1: Choose a Business Name

Choose a unique and memorable name for your LLC. Make sure the name is not already in use by searching the Tennessee Secretary of State's database. You can also check the US Patent and Trademark Office's database to ensure the name is not trademarked.

Step 2: Appoint a Registered Agent

You will need to appoint a registered agent to receive legal documents and notices on behalf of your LLC. The registered agent can be an individual or a business entity. The registered agent must have a physical address in Tennessee.

Step 3: File Articles of Organization

File Articles of Organization with the Tennessee Secretary of State's office. The Articles of Organization must include the following information:

  • The name and address of the LLC
  • The name and address of the registered agent
  • The purpose of the LLC
  • The name and address of the initial manager or member

Step 4: Obtain an EIN

Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN is required for tax purposes and will be used to file taxes for your LLC.

Step 5: Create an Operating Agreement

Create an operating agreement that outlines the ownership structure, management, and governance of your LLC. The operating agreement is not required by the state, but it is highly recommended to avoid disputes and ensure the smooth operation of your business.

Step 6: Obtain Business Licenses and Permits

Obtain any necessary business licenses and permits from local authorities. The specific licenses and permits required will depend on the type of business you are operating and the location of your business.

Step 7: File Annual Reports

File annual reports with the Tennessee Secretary of State's office. The annual report must be filed by the end of the anniversary month of your LLC's formation.

What are the benefits of starting an LLC in Tennessee?

By following these steps, you can successfully start an LLC in Tennessee. Remember to carefully review and comply with all state and federal regulations to ensure the smooth operation of your business.

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