Forming a Tennessee Llc requires that you follow the same process as if you were forming a sole proprietorship. First, choose a name for your LLC. The name should be distinctive and shouldn't be too easy to confuse with an existing business. LLCs should have either a Limited Liability Company or Some Other Form of Limited Liability Company, or LLC. Your state regulations will provide specifics.
Second, select the classification of tennessee llc that best describes your business and the type of activities you will engage in. If you are a music studio, for example, you might choose a Class A M LLC. Your calendar year close date is important for all the other aspects of your business as well. You want to make sure that your new LLC is registered and has the most up to date tax identification. The tax identification number for a Tennessee LLC is 10 digits long.
Third, decide whether you want to form an LLC C or D. (Tennessee does not distinguish between the two.) C and D types of LLCs do not require any filing fees, yet they still maintain many of the same characteristics of C corporations. (LLCs have no provision for parking.) In essence, a C and D LLC is an updated or re-filed version of a traditional limited liability company with certain characteristics that have been changed to better fit into Tennessee's laws.
Forming an LLC in Tennessee
Fourth, decide what kind of operating agreement you need. Operating agreements are used to describe the relationship between the members of a LLC and the rest of the LLC. The most common operating agreement is called a 'creative" operating agreement. This type of operating agreement describes aspects of the business structure that help create the limited liability entity.
Fifth, determine whether you need a registered agent or a secretary. Registered agents work just like secretaries in conventional businesses. Registered agents take orders from the company and carry out the company's legal obligations, such as accounting, financial reporting and loan processing. A secretary, on the other hand, will carry out the day-to-day duties of the company's officers and will manage the company's financial records, such as its banking accounts and purchasing activities. Some TNLLs may allow both types of officers and functions, but most will require one or the other.
Sixth, consider whether you need a qualified manager. Some TNLLs will permit an individual to act as the sole owner of the LLC, while others require a qualified person to be the member of the LLC and serve as the company's registered agent. If you're registering a traditional corporation, such as a sole proprietorship or a partnership, you'll likely be required to have a manager as well as a board of directors. Sometimes, however, the laws regarding partnerships allow for a limited liability company to have no one of particular importance to manage the LLC. In this case, you'll be able to register your LLC with a different name than your primary business, and still establish a "pass-through" business. For instance, you can have your house-and-home businesses register as a "pass-through" business with the IRS and then have your actual business operate under your LLC name.
Seventh, look at whether your proposed business has any practical obstacles to getting off the ground. Commonly, entrepreneurs to register their businesses with the Tennessee Limited Liability Company (LLC) without first ensuring that their state will allow them to do so. Most states allow for "pass-through" corporations, which mean that your LLC is not required to register itself, and its officers, with the state, in order to operate. Additionally, the Tennessee Corporation Commission (TCC) does not have authority to regulate the registration of general partnerships (commonly called "commerce corporations"). Your future liability may depend upon whether your LLC becomes "pass-through" or not.
Finally, before filing an application with the TCC for your new business, it's a good idea to consult with an attorney experienced with Forming LLCs to make sure that your proposed operations are in accordance with the law. He or she can make sure that you have all of the necessary filings properly completed, that your LLC has all of the appropriate operating agreement and documentations, and that you have adequately protected its registered agent from liability. He or she can also ensure that you have complied with any other requirements set forth by the TCC, such as obtaining your certificate of registration, maintaining a staff that is knowledgeable about the state's business laws, and paying a filing fee.
Thank you for checking this blog post, for more updates and blog posts about tennessee llc don't miss our blog - Irisanddaughter We try to update our blog every week