Forming an LLC in Tennessee is a wise choice.
Here's why:
This business structure shields your personal assets effectively. If your business encounters legal issues, only the assets of the LLC are at risk, keeping your personal finances safe. Additionally, an LLC offers advantages when it comes to tax reporting.
Furthermore, it's a strategic step towards expanding your business in the future.
If you're ready to take your business to the next level, here's how to register an LLC in Tennessee.
Steps Needed to Get an LLC in Tennessee:
- Step 1: Choose a Name for Your LLC
- Step 2: Appoint a Registered Agent
- Step 3: File the Tennessee LLC Articles of Organization
- Step 4: Prepare an LLC operating agreement
- Step 5: Get an Employer Identification Number (EIN)
- Costs associated with Creating an Tennessee LLC
- Further Steps
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Step 1: Choose a Name for Your LLC
The Tennessee Secretary of State requires LLC business names to:
- Include the words ‘Limited Liability Company' or ‘LLC' (or their abbreviations, L.C. or LLC.) at the end of its name.
- Not contain any words prohibited by Tennessee law.
- Not be deceptively similar to another Tennessee existing business entity's name.
Business owners can use the Tennessee business name search database to check if their intended name is available:
If that’s the case, you can also opt in to reserve a business name for 120 days. It costs $20 to do so. The Tennessee name reservation form can be completed online, by mail, or in person at the Tennessee Secretary of State's office in Nashville.
The cost of DBA in Tennessee is $15 per name.
Step 2: Appoint a Registered agent
The good news is that you can pick anyone to serve as your registered agent (even yourself), and it doesn't necessarily have to be someone affiliated with your LLC.
Whether you name a corporation or an individual as your registered agent, you’ll need to list their physical street address (not a P.O. box) on the company formation documents.
If you don't want to be your own registered agent, you can hire one for about $89-$175/year in Tennessee.
If you form an LLC with Northwest, they'll give you a free registered agent for the first year. After that, it's $125 per year.
Step 3: File Tennessee LLC Articles of Organization
The next official step to forming an LLC is to file the Articles of Organization for a Limited Liability Company, with the Tennessee Secretary of State (SOS).
Tennessee has a peculiar fee structure where articles of organization cost has a base fee of $300 + an extra $50 for each LLC member:
- Minimum fee is $300 for single-member LLC.
- Maximum fee iup to $3,000.
This cost structure applies to both domestic and foreign LLCs.