Starting an Limited Liability Company in the Volunteer State|Establishing an business in the Volunteer State might seem complicated, but it does not need to be hard. You should tackle each essential step, from securing the right name to ensuring compliance with government requirements. Understanding the necessary paperwork and protecting your assets ahead of time can prevent issues later. Before you even think about paperwork, though, there’s a key initial step that lays the basis for all subsequent steps.

 

 

How to Pick Your Tennessee LLC Name

Before you can officially form your LLC in Tennessee, you'll need to choose a unique name that complies with state requirements. Your name must include "Limited Liability Company" or an abbreviation like "LLC."

It can't match or be confusingly similar to another business registered in Tennessee, so check availability using 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

Every Tennessee LLC must appoint a registered agent to receive legal and government documents.

The agent must have a physical Tennessee address—P.O. boxes aren’t allowed. 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

The next step is to file the Articles of Organization to officially form your Tennessee LLC.

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.

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

 

 

Creating an Operating Agreement

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

After formation, you need to stay up-to-date with Tennessee’s annual website requirements to avoid penalties.

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.

 

 

Summary

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!