How to Start an LLC in Tennessee: A Step-by-Step Guide

Starting a Limited Liability Company (LLC) in Tennessee can be a straightforward process, but it requires careful planning and attention to detail. In this article, we will guide you through the steps to start an LLC in Tennessee, including the necessary paperwork, fees, and regulations.

An LLC is a popular business structure that offers personal liability protection and tax benefits. To start an LLC in Tennessee, you will need to file articles of organization with the Tennessee Secretary of State and obtain any necessary licenses and permits.

Step 1: Choose a Business Name

The first step in starting an LLC in Tennessee is to choose a unique and memorable business name. Your business name must be distinguishable from other business names in the state, and it must not contain any words or phrases that are prohibited by the Tennessee Secretary of State. You can search for available business names using the Tennessee Secretary of State's business name search tool.

Step 2: File Articles of Organization

Once you have chosen a business name, you will need to file articles of organization with the Tennessee Secretary of State. The articles of organization must include the following information:

• Business name and address
• Business purpose
• Manager or member information
• Authorized capital
• Effective date

You can file the articles of organization online or by mail. The filing fee is $300 for online filing and $300 for mail filing.

Step 3: Obtain an EIN

An Employer Identification Number (EIN) is a unique number assigned to your business by the Internal Revenue Service (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 4: 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:

• Member or manager information
• Ownership percentage
• Management structure
• Decision-making process

You can create an operating agreement using a template or by consulting with an attorney.

Step 5: Obtain Licenses and Permits

Depending on the type of business you are starting, you may need to obtain licenses and permits from the state of Tennessee or local government. For example, if you are starting a food business, you will need to obtain a food service permit from the Tennessee Department of Health.

Step 6: Open a Business Bank Account

Once you have obtained an EIN and created an operating agreement, 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.

Step 7: File Annual Reports

Every year, you will need to file an annual report with the Tennessee Secretary of State. This report must include the following information:

• Business name and address
• Business purpose
• Manager or member information
• Authorized capital

The filing fee for annual reports is $50.

Starting an LLC in Tennessee can be a complex process, but by following these steps, you can ensure that your business is properly formed and compliant with state regulations. It's always a good idea to consult with an attorney or accountant to ensure that you are meeting all the necessary requirements.

In conclusion, starting an LLC in Tennessee requires careful planning and attention to detail. By following these steps, you can ensure that your business is properly formed and compliant with state regulations. Remember to file annual reports, obtain necessary licenses and permits, and keep your business finances separate from your personal finances.