Launching an Limited Liability Company in the Volunteer State|Setting up an Limited Liability Company in the Volunteer State may appear challenging, but it isn't daunting. It's best to manage all necessary actions, from choosing the perfect name to ensuring you're compliant with state requirements. Knowing the necessary paperwork and protecting your assets ahead of time may avoid problems down the line. Before you even think about filing forms, though, there’s an important first step that establishes the groundwork for all subsequent steps.
How to Pick Your Tennessee LLC Name
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.
Once you find an available name, consider reserving it for 120 days by filing an application and paying the reservation fee.
Appointing a Registered Agent
Your LLC needs a registered agent in Tennessee to handle legal notices and official correspondence.
The registered agent must have a physical street address in Tennessee, no P.O. boxes. 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, and intended duration.
Double-check every piece of information to prevent delays or rejection. The filing fee is $300, payable by credit card or check. After approval, you’ll receive confirmation, and your LLC visit the website 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.
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.
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.
Ensure your records are up-to-date, and send in annual reports on time to avoid penalties or administrative dissolution.
Final Tips
Forming an LLC in Tennessee is manageable when you follow these steps: choose a unique name, appoint a reliable registered agent, file the Articles of Organization, and craft an operating agreement. Remember to stay compliant with annual filings and licensing to keep your business in good standing. Follow these guidelines, and your LLC will be set for success in Tennessee.