To register to conduct business in Tennessee, you must first grasp the procedures.
To register to conduct business in Tennessee, you must first grasp the procedures. Tennessee was the 17th biggest state in the United States in 2014, with a population of 6.5 million people. FedEx, HCA Holdings, Dollar General, Auto Zone, and International Paper are all headquartered in the state.
Examine the Availability of Names
You must pick a name for your company, but you must ensure that the name is accessible. It is a good idea to check the national business name database and do a trademark search to safeguard your company from infringements.
It is critical that you select a name for your firm that is distinct from the names of all other organisations. You don’t want your firm to be confused with another. Assume you own and operate a cleaning company called Tom’s Cleaning Company.
Another firm in Tennessee already has a cleaning company named Tommy’s Cleaning Company, but it has a negative reputation for not being able to satisfy the demands of its clients. If you call your cleaning service Tom’s Cleaning Company, you may wind up harming yourself since customers may mix the two businesses.
Pay the Filing Fees
There are two methods for submitting your document for company formation. You may either hand file your forms or submit the papers online. There are filing costs for creation; corporations must pay a charge of $100, and LLCs must pay a fee of $50 per member, with a minimum of $300. Processing time will be between two and four days.
Select a Business Structure
One of the most crucial considerations to make is the legal framework under which you will operate. You will be able to choose between operating as a Limited Liability Company (LLC), a corporation, a partnership, or a single proprietorship. Each of the various solutions has pros and cons. Your structure will influence how much you pay in taxes, how much paperwork you have to undertake, how much personal responsibility you will face, and your capacity to attract funding.
Obtain a Business License.
A business licence is necessary for the majority of Tennessee firms. These are issued by the county clerk in your area. If the city in which you want to establish your firm has implemented a business tax, a local business licence may also be necessary. Every company in Tennessee is subject to federal, state, and municipal taxes, as well as excise, franchise, and use taxes.
Additional Steps to Take
If you plan on producing, distributing, selling, renting, leasing physical goods, or providing taxable services, you will need a Certificate of Registration. This is a necessity for all types of businesses, including non-profits.
Out-of-state merchants with a physical presence or nexus in Tennessee, whether temporary or permanent, must obtain a Certificate of Registration. If the firm has more than one location, each business entity must get a Certificate of Registration. The Department of Revenue is where you may apply for a Certificate of Registration.
All Tennessee businesses must register for and pay franchise and excise taxes. The Franchise, Excise Application for Registration form, RV-F1303601 must be filed with the department. The franchise tax is levied on the greater of net worth or book value of real or tangible personal property held or utilised in the state. The excise tax is based on the tax year’s net profits or income.
In addition to the Franchise and Excise Application, the Tennessee Secretary of State will need the submission of the necessary incorporation paperwork and fees. Any changes to these papers must be submitted to the Secretary of State’s office. This is done in order to get the following:
Articles of Association
Limited partnership certificate
Authority Certificate (for out-of-state corporations)
All companies are required to submit an annual report and filing fees with the Tennessee Secretary of State by the first day of the fourth month after the fiscal year’s end.