How to Form a Limited Liability Company in Tennessee

Start an LLC in Tennessee in 5 Simple Steps

Step 1: Give Your Tennessee LLC a Name
Step 2: Select a Registered Agent.

Step 3: File the Articles of Organization.

Step 4: Draft an Operating Agreement.
Step 5: Obtain an EIN

It is simple to form an LLC in Tennessee.

To form a Tennessee LLC, you must submit the Articles of Organization with the Tennessee Secretary of State, which has a filing cost of $300. Apply online, in person, or by mail. The Articles of Organization are the legal documents that establish your Tennessee LLC.

STEP 1: Give your Tennessee LLC a name.

The first and most significant step in forming an LLC in Tennessee is deciding on a name. Make sure your name conforms with Tennessee naming regulations and is readily searched by prospective customers.

1. Follow the Tennessee LLC naming guidelines:

The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organization (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licensed professional, such as a doctor or lawyer, in your LLC.

2. Does the name exist in Tennessee? Check the Secretary of State’s website for a Tennessee LLC name search to ensure that the name you choose isn’t already in use.

3. Is the URL accessible? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to launch a company website right away, you may wish to purchase the URL to prevent others from doing so.

STEP 2: Select a Registered Agent in Tennessee

A Registered Agent must be appointed for your Tennessee LLC.

What exactly is a Registered Agent? A registered agent is a person or corporate organization that receives vital tax forms, legal papers, lawsuit notices, and other government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.

Who is eligible to be a Registered Agent? A Registered Agent must be a Tennessee citizen or an organization, such as a registered agent service, that is permitted to do business in Tennessee. You may choose someone from your organization, even yourself.

STEP 3: Submit the Tennessee LLC Articles of Organization to the Secretary of State.

You must complete Form SS-4270 – Articles of Organization with the Tennessee Secretary of State to register your Tennessee LLC. You may apply in person, online, or by mail. The filing cost is $50 per member, with a $300 minimum and a $3000 maximum.

If you want to extend your current LLC to Tennessee, you must register a Foreign LLC.

STEP 4: Draft an Operating Agreement for Your Tennessee LLC

Although an operating agreement is not necessary in Tennessee, it is a good idea to have one.

What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.

Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.

STEP 5: Obtain a Tennessee EIN.

What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security number.

An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).

Why do I need an EIN? An EIN is necessary in order to:

Establish a business bank account.
Filing and managing federal and state income taxes
Employ people

What if my single proprietorship already has an EIN?

When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.

Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.