Many people who want to start a business in Tennessee need some advice on how to go about it. However, small business owners are often underwhelmed by the various available options for setting up a new LLC. Many of them feel overwhelmed by the complexity involved to start an LLC in Tennessee.
This article will provide some insights into how you can start an LLC in Tennessee easily and quickly. It will also cover how to protect your brand as well as how to ensure that your business is functioning smoothly while you focus on other key areas that need your attention.
Steps to start an LLC in Tennessee
The following are the steps that you need to take if you want to start an LLC in Tennessee. They will help you complete the setup process and ensure that your business is ready for operation.
1. Choose a Name for your Tennessee LLC
The first thing that you need to do if you want to start an LLC in Tennessee is to choose a name. As is the case with forming any new business, you need to choose a name that is unique. The name of your business should be representative of what your business does.
It is highly recommended that you choose a name that is descriptive in nature. This will help ensure that your clients identify the services provided by your business quickly and easily. It will also help to improve your reputation because it will allow people to know some details about your company.
The type of name that you choose can also make a big impact on how long it takes for people to find the right contact information for your business, if at all. So, it is a good idea to choose a name that is easy to remember and also professional in nature. You need to know that there are certain words that you can’t use in your LLC name.
For example, you can’t use the word “Bank,” “Attorney,” or any words related to government agencies. You should take some time to find out more about available choices before you decide on an appropriate name for your LLC.
2. Choose a Registered Agent & Office Location
The next thing that you need to do is choose a registered agent and an office location for your LLC. You will also need to provide the state with contact information for your registered agent as well as a physical address where your business is located.
The registered agent will be the person who will be doing all the paperwork for you, so you need to ensure that this person is someone who is reliable and trustworthy. You should also consider whether or not the office location that you choose provides an easy and convenient way to reach the registered agent while they are working on your case.
3. Draft an Operating Agreement
The next thing that you need to do is draft an operating agreement for your LLC. This agreement can be anything that you want. You can draft a basic one-page document or go with a more detailed document if you feel that there is a need to provide specific conditions and guidelines for your business.
However, it’s important to keep in mind that the operating agreement should not take up too much space because not everybody has the time or resources available to read it all the way through properly.
The operating agreement is the document that will help your LLC to function properly. Without it, your LLC will have a difficult time executing all of the needed tasks involved with running a successful small business.
4. File Articles of Organization
The next step that you need to take is to file articles of organization with the state. The articles of organization are going to include all of the essential information and data that the state needs in order to officially register your LLC.
The articles of organization can include the documents that contain the names and contact information for all the people who are going to be part of your LLC. You will also need to provide a brief summary of what your business is going to do and how it is going to be structured.
All this information will ensure that the state has all its important details in place when it comes time to register your business. Make sure that you double-check all of these details as you are filling out the articles of organization.
5. Obtain a Tax ID & Employer Identification Number
The next step that you need to take is to obtain a Tax ID number from the IRS. This number is going to serve as your company’s Employer Identification Number (EIN). This will allow the state to grant your business legal permission to operate and transact business without any problems. The state will require your EIN when it comes time for it to be approved for registration.
The EIN is very important because it will help ensure that your business stays legal and lawful. Without it, you can run into a whole host of problems with the state as well as other organizations that are associated with running a business.
You also need to apply for an Employer Identification Number if your LLC is going to employ people. This number will confirm that your business has been granted permission from the IRS to be set up as an employer. If you are going to be hiring other people to work for you, it is important that you apply for the number immediately.
6. Get Business Licenses
The next step that you need to take is to apply for the necessary business licenses in order to keep your company running smoothly and legally. Some of these licenses include those needed for sales tax payments, contractor registrations, and business permits.
These are just some of the major licenses that you will need if you want your company’s operations to run as smoothly and efficiently as possible. You can also have a difficult time if you do not have a valid business license in place at all times.
7. File Annual Reports
The final step that you need to take is to file your annual report with the state. You will have a limited amount of time in which you can do this, so you need to make sure that you get it done as quickly as possible.
The annual report is very important because it will ensure that your business remains registered. It also ensures that the state has all of its important details in place regarding your business’s standing and obligations with the agency. You should complete this report on or before the fourth month of your fiscal year to ensure that the state has all of the information it needs to give your company its approval so that it can continue to function properly.
If you have decided to follow these steps on how to start an LLC in Tennessee in order to start up and operate your business, you will need to make sure that you follow the state’s specific guidelines.
You should not have any trouble if you utilize these steps to the best of your ability and do everything to comply with the state’s demands. The more work that you put in as you are following these steps, the easier it will be for all parties involved to get the approvals in order and get your company registered with the state.