How to Form an LLC in Tennessee: Establishing an LLC in TN
Launching an business in Tennessee|Setting up an business in the Volunteer State seems difficult, but it doesn’t have to be overwhelming. It's best to manage all necessary actions, from choosing the perfect business title to making sure you're compliant with local rules. Getting familiar with the paperwork needed plus protecting your assets ahead of time may prevent issues down the line. Before you even think about paperwork, though, there’s an important initial step that lays the basis 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.
Designating a Service for Legal Notices
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.
Make sure your agent is dependable and available during regular hours to prevent missing critical notices.
Submitting Your Tennessee LLC Formation Document
To legally establish your LLC, file the Articles of Organization with the Tennessee Secretary of State.
Complete and submit Form SS-4220 either online via the Tennessee Secretary of State’s portal or by mailing the completed form. It requires your LLC name, address, registered agent info, management structure, visit the website and intended duration.
Ensure accuracy when submitting; the fee of $300 must be paid, either online or via check. After approval, you’ll receive confirmation, and your LLC is officially recognized in Tennessee.
Drafting Your Tennessee LLC Operating Rules
While Tennessee doesn’t legally require an operating agreement, it’s highly recommended to create one. This document should outline management responsibilities, profit distribution, member duties, and procedures for decision-making or dissolving the LLC.
Having a clear operating agreement is key to preventing disagreements and establishing your LLC’s professionalism. 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.
Maintain detailed financial records, and promptly update your registered agent information as needed. Watch deadlines for filings and tax payments.
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!