Forming a limited liability company (LLC) in Tennessee is straightforward. You’ll fill out the articles of organization, pay the fee, and file them with the Secretary of State. But there are some things to know about the process before you start.
Article of Organization Requirements
In Tennessee, the articles of organization must include the following information:
• Name of the LLC
• Address where it will conduct business
• Names and addresses of members
• Purpose of the LLC
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Tennessee Articles of Organization Filing Is Easy!
An LLC is a type of corporate entity where the owners are called Members. In order to form an LLC you must file Articles of Organization with the Secretary of State. This filing is easy and inexpensive. You do not need to hire an attorney or pay a fee to register your LLC.
There are two types of organizations: One Member and Multiple Members. If you want to start an LLC with one owner, it is known as a Sole Proprietorship. If there are multiple owners, it is called a Partnership.
The Articles of Organization must include information about the Name of the Company, Address, Names of Officers, Directors, Managers, Shareholders, Date of Formation, and Other Important Details.
Step 1: Purchase your articles of incorporation forms.
The Tennessee Secretary of state has begun accepting online applications for nonprofit organizations. If you are interested in applying for tax exempt status under section 501(c)(3), you must submit the following documents via eForms Online:
1. An application form;
2. A completed Form 990-NTEZ;
3. A copy of your most recent federal income tax return;
4. Three letters of recommendation from individuals familiar with your work. These recommendations do not need to be written by the same person who submitted the application.
5. Two copies of a current passport photo.
6. A $25 fee per organization. This covers processing fees and postage costs.
7. One original signature. You may use a photocopy or scan of your signature.
8. Once you complete the process, you will receive an email confirming your submission.
Step 2: Complete the articles of incorporation
In this step, we will go over filling out the articles of formation form. You must complete this step before you are able to file your articles of incorporation with the Secretary of State. If you do not complete this step, you will receive a letter stating that you cannot proceed further.
The articles of organization form requires you to provide information about yourself, the company name, address, and contact information.
You will also need to provide information regarding the following:
1. Obligated Members – Each person listed under “Obliged members” must sign a document stating that he/she agrees to be bound by the terms of the articles of organization.
2. Designation Confirmation Section – A signature is required here.
3. Address – Your physical mailing address.
4. Contact Information – Your email address, phone number, and fax number.
Step 3: File the Articles of Organization
To start a limited liability company in Tennessee, you must file articles with the Tennessee Secretary of State. This process requires filling out forms online or via mail. You can choose to do both methods or just one. If you decide to use the online method, it costs $50 per person. However, if you want to go old school, you can print off the form and send it in by snail mail. Either way, you still have to pay the fee.
Steps After Your Tennessee LLC Is Officially Formed
An LLC is a type of limited liability company organized under Tennessee law. You can use an LLC to protect yourself from personal liability and to operate legally without being subject to federal income taxes. In addition, it provides certain benefits, such as pass-through taxation and asset protection.
To form an LLC, you must file Articles of Organization with the Secretary of State. These documents are very simple and cost $100.00 plus filing fees. Once you’ve completed the forms, you’ll receive a Certificate of Formation from the state. This document is proof that your LLC exists.
If you’re forming an LLC to operate a business, you’ll want to make sure the LLC is registered to do business in Tennessee. There are three ways to register an LLC in Tennessee:
1. Registering Through the Secretary of State – If your LLC is a member-managed entity, you will need to provide the names and contact information for each member. Then, you’ll need to pay a fee and submit the required documentation.
2. Registered Agent Service – If your LLC is manager-managed, you will need to designate one person to act as the LLC’s agent. This person will serve as a liaison between the LLC and outside parties. They will accept legal process on behalf of the LLC and manage the LLC’s property.
3. Online Registration – If your LLC does not require a registered agent, you can register online. However, there is a small fee associated with this option.
Once your LLC is officially formed, you’ll need to complete the following steps:
Create an Operating Agreement.
An operating agreement is a legal document that governs how an LLC operates. In most states, it protects the interests of each member of the LLC. If there are disagreements among the owners, the operating agreement provides a framework for resolving disputes.
You don’t need to register an operating agreement with the state. However, if you do choose to file one, here are some things to consider:
• Who owns what percentage of the LLC?
• What happens if someone leaves the LLC?
• How does the LLC use its money?
• Do you want to limit liability for certain actions?
• Is there anything else you want to include in your operating agreement?
Get an EIN
If you are planning to hire someone, it’s important to know how to obtain an Employer Identification Number (EIN). This federal tax ID allows employers to file taxes on behalf of employees. If you do not have one, you can still work for yourself, but you will need to register with the IRS and pay self-employment taxes.
In addition to filing taxes, you will need an EIN to open bank accounts, write checks, and make purchases over $10,000. To start the process, you’ll need to complete Form SS-4, Application For Employer Identification Number. Once you submit the form, you will receive an email confirmation within five days. You can print out a copy of the application here.
Once you have received your EIN, you can use it to access the IRS’s eServices portal. You can view your W-2 forms, file your quarterly returns, and update your contact information here. You can find additional resources about filing taxes here.
Open a Business Bank Account
Business owners often think about how much money they need to start up a small business, but there are many things to consider beyond just cash flow. A business bank account offers additional benefits like fraud protection, access to loans and lines of credit, and even tax advantages. Opening a business bank account requires planning ahead, though. Here are some tips to help you decide whether it makes sense for your business.
Get Licenses and Permits
When setting up an LLC, it’s important to know what types of licenses and permits are required. This article addresses some common questions about licensing requirements for different types of companies.
Federal Laws Require Certain Businesses To Obtain Licenses Or Permits
The federal government requires certain businesses to obtain licenses and permits. These include:
• Alcoholic beverages – producers, importers, wholesalers, retailers, and consumers
• Banks and banking institutions – including national banks, state banks, savings associations, credit unions, and federally chartered trust companies
• Brokers – real estate brokers, insurance agents, securities dealers, commodity traders, and investment advisors
• Charitable organizations – such as religious, educational, civic, fraternal, social welfare, veterans, and political organizations
Frequently Asked Questions
Do I have to file an annual report for my LLC in TN?
The answer is yes! If you are operating as an LLC (Limited Liability Company),, you must file an Annual Report. You may want to consider filing online at www.tn.gov/corporation-filing/online-corporate-filings.
You should file your Annual Report no later than March 31st. Failure to do so could result in fines or even criminal charges.
If you operate as a sole proprietor or partnership, you don’t need to file an Annual report. However, if you are doing business under any name other than your own, you should register your trade name with the Secretary of State’s office.
What taxes does an LLC pay in Tennessee?
LLCs in Tennessee do not pay any taxes. If you want to incorporate in TN,, you must file a separate LLC application.
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.