Tennessee is among the top ten friendliest US states for businesses in 2022. It is home to some of the most popular global brands and high-profit industries. The state has the lowest per capita tax nationwide and no personal income tax, which makes its business climate even more progressive and growth-oriented. By starting an LLC in Tennessee, you can enjoy further benefits from the LLC business structure on top of the state-funded programs, funds, and incentives.
So without further ado, let’s take a look at the steps required to start an LLC in Tennessee:
Decide an LLC Name
The first step of starting an LLC in Tennessee is deciding on your business name. You must note that you cannot choose a random name for your Tennessee LLC. Instead, it must be relevant to your industry, unique from the names of other businesses, and compliant with the state’s business name regulations. If you are unsure how to think of a name that complies with all the rules, take help from a business name generator.
Once you have some names and ideas you like, check their availability. You can choose the one you like most among the available names.
Reserve the Chosen LLC Name
While this step isn’t a requirement to start an LLC in Tennessee, it can keep you from repeating the first step. Reserving a business name in Tennessee only costs $20. The name is reserved for 120 days, so you can easily complete the remaining steps.
Click here to reserve your Tennessee LLC business name.
Get an LLC Address
The state of Tennessee requires a physical stress address for every business. The state accepts any address as long as it is not a P.O. Box. If you already have a location for your small business, you can provide that as your LLC address. Alternatively, you can provide your residential address or virtual mailbox address. The latter option can help you maintain your privacy and separate your personal and professional lives.
Click here to get a virtual mailbox address for your Tennessee LLC.
Appoint a Registered Agent
All LLCs in Tennessee require a registered agent to manage and represent the LLC on its behalf. A registered agent can be an entity or an individual. However, they must have a Tennessee physical street address and be present during work hours for paperwork and correspondence.
A Tennessee LLC registered agent is appointed with the step of filing articles of organization. However, you can get the person or entity on board with the idea to make the process of starting an LLC in Tennessee smoother.
Click here to find a registered agent for your Tennessee LLC.
File Articles of Organization
Articles of Organization is a document requiring the basic information about the LLC getting established. It is submitted to the Tennessee Secretary of State. This information includes the LLC name, address, purpose, and duration; business members’ names and addresses; provisions for the regulation of the company's internal affairs; and name, address, and signature of the registered agent.
This is a relatively simple step and can be completed online. However, the filing fee for articles of organization in Tennessee is not a fixed amount. Instead, the state charges $50 per business member for filing articles of organization.
Click here to file your Tennessee LLC articles of organization.
Register for an EIN
Once the articles of organization are processed and approved, you will receive a certificate confirming the establishment of your LLC. You can use the certificate to get an EIN or Employer Identification Number. EIN is provided to a business when it registers itself with the Internal Revenue Service (IRS), i.e., the federal government. Getting an EIN is essential to starting an LLC in Tennessee as it will allow you to open a business bank account, file and report taxes, and hire employees.
Click here to get an EIN for your Tennessee LLC.
Prepare an Operating Agreement
You don’t need an operating agreement to start an LLC in Tennessee. However, you and your business can significantly benefit from getting one.
As the name suggests, an operating agreement outlines a business's operational framework, details, and processes. In this way, it keeps the business members’ on the same page and saves the business from lawsuits and unwanted claims. The contents of an operating agreement include business members’ contributions and responsibilities, profit sharing, business management principles, liability clauses, steps for eliminating and adding members, business dissolution terms, voting rights, and other information required for business governance.
Click here to make one yourself for your Tennessee LLC.
While your business will be established on paper once you complete the above seven steps, there is another step you must complete to successfully start an LLC in Tennessee. This step is:
Get a Website and Market your Business
In today’s digital age, consumers search for everything they need online. Therefore, marking an online presence for your business is essential if you want your business to be profitable.
A website also makes businesses appear legitimate and trustworthy. The steps involved in building a website include buying a domain name, securing a host, building an interface, designing a layout, writing copy, and many other steps. Not to mention, you must also regularly update and optimize your website, so it remains searchable.
But a website is not enough on its own. After all, you cannot wait for customers to find you through search engines. Hence, you also need to make social media business profiles, market your business on digital platforms such as Yelp, Nextdoor, etc., and advertise it through traditional means in local newspapers and magazines.
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With Trady.com, you can update and maintain your business’s online presence and marketing in under ten minutes through a few taps on your smartphone. The ease of managing the online presence and getting new customers will allow you can focus your time on providing the best services to convert the new customers into regulars.
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