A company cannot operate without a corporate charter. A charter is a document authorized by the state to allow a corporation to legally exist. There are many different types of charters, including a certificate of authority, a certificate of convenience, a certificate of merger, a certificate of amendment, and a certificate of dissolution.
Article of incorporation must include the name of the incorporator(s), the date of organization, the address, the purpose of the corporation, the amount of capital stock, and the number of shares outstanding.
Incorporating a business requires several steps. First, you must file articles of incorporation with the Secretary of State. Second, you must obtain a Certificate of Authority from the Secretary of State. Third, you must register the business with the IRS. Fourth, you must post a surety bond with the Secretary of State to protect consumers against fraud. Finally, you must elect officers and directors.
The process varies depending on whether the corporation is domestic or foreign. Domestic corporations are incorporated under Chapter 48 of Title 67 of the Tennessee Code Annotated, while foreign corporations are incorporated under Chapter 66 of Title 67.
For more information about incorporating a business in Tennessee, please contact our office today.
Table of Contents
Company Name
A good company name conveys what you do and why people should care about it. A great name communicates a brand identity and makes customers feel something special.
Your company name is one of the most important assets you have. It represents your entire business online. And it’s the foundation upon which everything else you build rests.
The best way to find out whether a potential name is memorable and unique is to test it yourself. Try typing it into different browsers and see how many searches come up for related terms. If there are lots of hits, it’s probably too generic. If no one seems to know what you do, it’s definitely too vague.
A company purpose statement is a great way to describe what makes your organization unique. A well written one will tell potential clients why they want to work with you. You can use it to explain your mission, vision, values, goals, and objectives. Here are some examples of good ones:
Our Mission: To provide quality products and services to our customers while maintaining high ethical standards. Our Vision: We envision a world where everyone enjoys safe food, clean water, affordable energy, and access to health care. Our Values: Integrity, Respect, Responsibility, Innovation, Collaboration, Accountability, Excellence, and Stewardship. Our Goals: To become a leader in providing quality products and services; to maintain a positive reputation; to improve customer satisfaction; to expand our market presence; and to increase profitability. Our Objectives: To develop a strong team culture; to build long term relationships with suppliers; to provide superior customer service; to grow our market presence; and, to maximize profits.
An authorized share count is published on a company’s annual report. This number represents how many shares of common stock the company intends to issue during the next 12 months. If you see a large increase in the authorized share count, it could mean that the company is planning to raise capital by issuing additional shares.
Companies cannot issue stock without shareholder approval. Before a company can sell additional shares, it must obtain shareholder authorization. When authorizing the sale of shares, investors give up some control over the company. Investors can choose whether or not to approve the transaction, and if approved, they can decide what price to pay per share.
The authorized share count is used to calculate the total number of outstanding shares of a company. For example, if a company has 2 million shares outstanding, and authorizes 500,000 shares for issuance, the authorized share count is 2,500,000.
Registered Agent
– What Is it? How To Choose One For Your Business
A registered agent is an individual or firm that serves as the representative of a business before the government. This includes filing documents such as articles of incorporation, annual reports, and tax returns. If you want to incorporate a business, make sure you choose a reputable registered agent. You’ll find many companies online that offer this service. However, there are several things you must consider before choosing one.
What Kind Of Registered Agent Do I Need?
There are three types of registered agents: general agents, foreign agents, and local agents. General agents represent businesses nationwide, while foreign agents represent businesses outside of the United States. Local agents represent businesses within a specific state. Some states require certain individuals to act as registered agents, while others allow anyone to serve as a registered agent. Before choosing a registered agent, ask what type of representation he/she provides.
Who Should Be My Registered Agent?
The best choice for a registered agent depends upon the size and location of your business. Smaller businesses usually do not need a registered agent because they rarely file paperwork with the government. Larger businesses often hire Annual a local agent to handle the registration process. Income Foreign agents are typically used for international corporations.
Addresses and Names of the Incorporators
The articles of incorporation must include the names and addresses of each incorporator. In addition, the names and addresses of the directors and officers must be included in the articles. If you elect individuals to serve as directors and officers, it is important that they sign the articles of incorporation under penalty of perjury. This ensures that the corporation is properly formed and avoids problems later down the road.
Annual Statements
The annual statement includes financial statements, auditor’s reports, and directors’ statements. These documents are required by law for most public companies. They are filed with the Securities and Exchange Commission (SEC).
Corporations must submit an annual report within 30 days following the end of its fiscal year. This document provides information about the corporation’s performance over the previous year. It contains audited financial statements, management’s discussion and analysis of operating activities, and other material information.
Companies must file a separate report for each quarter if there is a significant change in the company’s operations. A quarterly report covers the period ending three months prior to its due date. Companies must file a separate report covering any changes occurring during the course of the quarter.
Income Tax Rate
Corporations are taxed on income earned through any trade and business done within the United Sates. Corporations must report income received from any trade or business done in the US. This includes dividends paid out to shareholders, interest paid to bondholders, rent collected from tenants, royalties generated by intellectual property, and profits from sales of goods and services.
The tax rate depends on the type of corporation and how much it earns. For example, companies incorporated under Subchapter C of the Internal Revenue Code pay corporate income tax based on the amount of taxable income earned during the tax period. Companies incorporated under Subchapter S of the Internal Revenue Code do not pay corporate income tax; rather, their income passes directly through to their owners.
Steps for Filing a Charter
To incorporate a nonprofit entity, start by selecting “Corporation” from the drop-down menu. Select “Forms and Fees” and choose ‘Charter (ss-4458).’ This will open up a window where you’ll fill out the necessary information.
For profit businesses should select “Corporations.” From there, select “FormsandFees” and choose “Charter (ss-4418).” You’ll be asked to provide basic information about yourself, including your name, address, phone number, email address, and whether you’re incorporated already.
A limited liability company is similar, but doesn’t require officers or directors. Instead, it requires shareholders. If you want to form one, select “Limited Liability Company,” and follow those same instructions.
There are many ways to form an LLC or LLLC in Tennessee. Hiring a lawyer can make sure you don’t miss anything important. They will also advise you on how best to structure your organization.
Tennessee Nonprofit Articles of Incorporation
To form a nonprofit organization, there are several steps to take. First, you must file an Articles of Incorporation with the Secretary of State’s office. Once filed, the corporation becomes officially recognized. Then, it needs to apply for tax-exempt status. Finally, it must register with the IRS. This article explains what each step entails. incorporation includes protection against personal liability, limited liability, and increased flexibility
Incorporating your business allows you to protect yourself personally and financially from lawsuits filed against your business. If you are sued, the lawsuit could go against your assets, including real estate, equipment, inventory, accounts receivable, and bank accounts. This type of exposure is much greater for sole proprietorships and unincorporated businesses because there is no legal entity to shield owners from such claims.
Limited Liability Corporation (LLC), Limited Liability Partnership (LLP), and S corporation provide limited liability protections to individual members of the organization. In addition to protecting individuals, LLCs, LLPs, and S Corporations offer additional benefits. These include:
• Protection from creditors’ claims
• Increased flexibility
• Tax advantages
• Ability to raise capital
• Ability to form multiple entities under one umbrella
Frequently Asked Questions
How much does it cost to file an LLC in TN?
The cost of filing an LLC in Tennessee varies depending on what type of business entity you choose. If you want to start a sole proprietorship, you will need to pay $100.00 to file the paperwork. However, if you decide to go with a corporation, you will have to spend around $500.00 to start. There are many different types of businesses that you can incorporate, including LLCs, corporations, partnerships, and S-corporations. Each of these entities offers its advantages and disadvantages. Therefore, you should consider the pros and cons before choosing which type of business structure is right for you.
LLCs (Limited Liability Companies)
An LLC is a great choice if you want to protect yourself from personal liability while still operating a business. An LLC offers protection from lawsuits filed by third parties who may suffer injuries due to negligence. In addition, an LLC provides its members with tax benefits. You do not pay taxes on profits until they reach certain levels. Also, any losses sustained by the company are passed onto individual owners rather than being taxed at the corporate level.
Corporations
A corporation is a legal entity that exists separate from its shareholders. A corporation is responsible for paying income taxes and reporting profits and losses. Corporations are often referred to as C-Corp or C Corporation.
Partnerships
A partnership is similar to a corporation in that it operates separately from its partners. Partnerships are created for two or more individuals to share ownership of a business venture. Unlike a corporation, each partner owns a percentage of the company based on his/her contribution.
S-Corporations
An S-Corporation is a hybrid between a corporation and a partnership. Like a corporation, an S-Corporation reports profits and pays taxes. However, unlike a corporation, an S Corp does not distribute dividends to shareholders. Instead, profits are distributed to the partners according to their respective contributions.
Does Tennessee require an operating agreement for LLC?
Tennessee requires an Operating Agreement for any company formed under the laws of Tennessee. An Operating Agreement is a contract between members of an LLC. To operate an LLC, each member agrees to certain responsibilities in the Operating Agreement. These agreements are filed at the County Clerk’s office where the business was registered. If you have questions regarding an Operating Agreement, please contact us here.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.
