Located in the southeastern part of the U.S. and bordered by eight other states, Tennessee is well-located with beautiful geography and vibrant cities. The state boasts a diverse economy, including sectors such as tourism, manufacturing, agriculture, chemicals, electrical and transportation equipment.
Tennessee also has some major tourist attractions including Graceland, the Great Smoky Mountains National Park, the Appalachian Trail, the Jack Daniel's Distillery, Dollywood and more.
Whether you want to take advantage of the rich tourism industry or you’re interested in another sector, Tennessee is a great place to be an entrepreneur. If you want to start your own business in Tennessee, one of the best ways to do so is by forming an LLC.
Tennessee Limited Liability Companies (LLCs) are a business entity designed for startups and small- and medium-sized businesses. Forming an LLC is fast, easy and inexpensive. LLCs offer many of the protections and advantages of large corporations without all the rules, regulations and compliance issues common to larger business entities.
In Tennessee you also have the option to set up a “Series LLC” — these are specialized LLCs designed to allow you to manage multiple separate LLCs under one master umbrella LLC.
Let’s start by looking at the advantages of forming a Tennessee LLC.
Advantages of Forming an LLC in Tennessee
Tennessee LLCs have several benefits for business owners.
There’s another big advantage to locating a business in Tennessee: This state does not charge state tax on regular or business income (only on dividend and interest income), so your dollar will go that little bit further.
Start Your Tennessee LLC in Six Steps
STEP 1: Name Your Tennessee LLC
You will need a distinctive, original name for your Tennessee LLC that’s not used by another business in Tennessee. To find out if another company is using your choice of business name, carry out a Tennessee business entity name search.
The name you choose should be unique and not able to be confused with the name of another Tennessee business. The name of your business must also contain the words “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.” For example: “Tennessee Country Music Records Reports LLC” or “Presley and Sons, Limited Liability Company.”
STEP 2: Provide the Address for Your New Tennessee LLC
A Tennessee LLC must have a designated street address. That could be your home address (if you’re running the company from your residence), where your office is located or any physical address of your preference — even outside of Tennessee. It cannot be a P.O. Box.
STEP 3: Assign a Registered Agent for Your Tennessee LLC
Every Tennessee LLC must have a “Registered Agent.” That could be you, the managing director, owner or a dedicated Registered Agent service. The Registered Agent in Tennessee is someone who receives official legal and tax correspondence and has responsibility for filing reports with the Tennessee Secretary of State.
At Incfile, all of our packages include a Registered Agent service, which is free for the first year and just $119 per year thereafter. We also have a dashboard where you can log in and easily view any document your Registered Agent has received on your behalf. Here are a few reasons you might want to appoint Incfile as your Registered Agent service:
STEP 4: Provide Relevant Information on Your Tennessee LLC
You will need to gather the relevant information to form your Tennessee LLC. We can guide you through the process.
STEP 5: File Articles of Organization With the Tennessee Secretary of State
Once you've gathered all the information together for your LLC, you’ll need to file a formal document with the Tennessee Secretary of State to create your LLC. This document is known as your Articles of Organization, and filing it starts the process of creating your Tennessee LLC. You can do this online, mail in a form or have Incfile do it on your behalf.
STEP 6: Create a Tennessee LLC Operating Agreement
Tennessee LLCs aren’t required to have an Operating Agreement, but they are extremely useful for several reasons. Your Operating Agreement covers how the business will be run, how managers and members are chosen, the rights and duties of members and several other key areas. Learn how to create your Operating Agreement here.
If you’re interested in having your Operating Agreement created for you, Incfile will draft a general Operating Agreement within most of our online business formation packages. It can also be selected as an add-on option in our Silver package. This Operating Agreement will be a basic template that you can make changes to anytime you see fit.
You can find lots more useful information on how to form an LLC here. It answers questions like:
Incfile provides a cost-effective service to help you create your LLC. We guide you through the process and handle most of the administrative steps on your behalf, such as filing the Articles of Organization. Our basic package also provides free Registered Agent service for the first year. If you're looking for help starting an LLC, our comprehensive services provide outstanding value.
|State Fee||State Filing Time||Expedited Filing Time|
|$308||5 Business Days||1 Business Day|
This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.
Due Dates: Calender Year: April 1st.
Fiscal Year: 1st day of 4th month following close of fiscal year.
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