Starting an business in Tennessee|Setting up an business in the Volunteer State may appear complicated, but it doesn’t have to be hard. It's best to cover all necessary actions, from registering the ideal name to making sure compliance with local requirements. Understanding the paperwork needed and how to protect your assets early may avoid problems down the line. Prior to paperwork, though, there’s a critical initial step that sets the foundation for what comes next.

 

 

Selecting a Unique Name in Tennessee

The first step in forming your LLC is selecting a name that’s available and meets Tennessee regulations. Your name must include "Limited Liability Company" or an abbreviation like "LLC."

Ensure the name isn’t already taken or too similar to another company by searching 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.

If the name is free, you can reserve it for 120 days by submitting a reservation application and paying a fee.

 

 

Choosing Your Registered Agent in Tennessee

Your LLC needs a registered agent in Tennessee to handle legal notices and official correspondence.

Your registered agent must be located at a real address in Tennessee, not just a P.O. box. You can serve as your own agent, hire a professional service, or designate another trusted individual or company.

It’s essential that your agent is reachable during business hours to accept official documents.

 

 

Filing the Articles of Organization

To legally establish your LLC, file the Articles of Organization with the Tennessee Secretary of State.

Fill out Form SS-4220 online or send a paper copy to the Tennessee Secretary of State’s office. It requires your LLC name, address, registered agent info, management structure, and intended duration.

Ensure accuracy when submitting; the fee of $300 must be paid, either online or via check. After approval, here you’ll receive confirmation, and your LLC is officially recognized in Tennessee.

 

 

Developing Your LLC Member Agreement

Even though Tennessee law doesn’t mandate it, drafting an operating agreement helps formalize your LLC’s structure. This document should outline management responsibilities, profit distribution, member duties, and procedures for decision-making or dissolving the LLC.

A well-drafted operating agreement can prevent disputes and show professionalism. It’s especially important if your LLC has multiple members. All members should review and sign the document, and keep it with your business records.

 

 

Meeting Ongoing Requirements and Remaining Compliant

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.

Ensure your records are up-to-date, and send in annual reports on time to avoid penalties or administrative dissolution.

 

 

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!