Limited Liability Formations in Tennessee
Formation documents must be filed with the Tennessee Department of State to begin an limited liability company in Tennessee. An LLC in Tennessee offers members protection from the company's obligations, as well as flexibility in terms of taxation and managing the business. The members of a Tennessee LLC establish written rules and regulations for operating the company.
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Name
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Conduct a name availability check using the Tennessee secretary of state website. This ensures that no other entity in Tennessee has a similar company name. You cannot use phrases in the company's name that imply the LLC has an affiliation with a government agency or a banking institution. The words "limited liability company" or an abbreviation such as "LLC" has to appear in the legal name of the business. Using a deceptively similar company name as another entity will cause the Tennessee secretary of state to reject your LLC formation documents.
Articles of Organization
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The Tennessee secretary of state website provides standard articles of organization that you can print and complete for filing. The document requests information such as the name and address of the company's registered agent and the reason for forming the business. The registered agent acts as the person or business responsible for accepting legal documents served to the LLC. The name and address of the LLC, as well as the name and address of each organizer have to appear in the articles. As of 2011, it costs $50 per member to file articles of organization with the Tennessee secretary of state. As of 2011, the minimum filing fee is $300, while $3000 is the maximum fee to file articles of organization.
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Operating Agreement
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LLCs in Tennessee should create a written operating agreement to provide policies and procedures for running the company. The operating agreement helps the members and managers of the company avoid disputes regarding profit distribution and management responsibilities. No set guidelines are offered by the state in terms of creating an operating agreement. You may include information in the operating agreement such as the time and place of company meetings, the amount of cash contributed to the business by each member, as well as the duties of the company's members and managers. The operating agreement should remain at the Tennessee LLC's main business location, since it is an internal document that is not filed with any state agency.
EIN
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Every LLC in Tennessee with more than one member needs to acquire an employer identification number from the Internal Revenue Service. Applying by telephone or online using the IRS website is the fastest way for a Tennessee LLC to receive its EIN. You must provide your name, social security number and address to receive an EIN for the company. In addition, state the LLC's date of formation, the number of individuals that work for the company and furnish a description of the company's business activities. An EIN is issued at the conclusion of the online or telephone session. Tennessee LLCs that apply by fax may wait up to 4 business days to receive an EIN, and applying by mail will cause you to wait up to 4 weeks to receive an EIN.
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