A certificate of good standing from Tennessee validates that a limited liability company (LLC) or corporation was founded lawfully and has been properly maintained.
We will explore the qualifications for good standing and how to get a certificate of good standing in Tennessee in our Certificate of Good Standing Tennessee guide
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How Do I Obtain a Tennessee Certificate of Good Standing?
Request your certificate of good standing, also known as a certificate of existence in Tennessee, from the Secretary of State.
There are two major processes involved in obtaining your certificate of good standing:
1. Maintain your LLC’s compliance
2. Request a certificate of good standing.
What exactly is a good standing certificate? A certificate of good standing is a state document that confirms your company was created lawfully and has been properly maintained.
Step 1: Ensure that your Tennessee business is in compliance.
To be eligible for a Tennessee certificate of existence, your company must meet the following state compliance requirements:
Permits and Licenses
To run a company in Tennessee, you must adhere to federal, state, and municipal licensing requirements. Regulations such as health permits and construction permits are examples of this.
The Tennessee State Government website has further information on state licensing requirements.
State levies
Depending on your company activity, you may be required to register for several types of Tennessee state tax. This includes sales tax as well as Unemployment Insurance (UI) tax. Tennessee has no state withholding tax.
Tennessee firms must pay Franchise and Excise Taxes, which are calculated based on a company’s net value and taxable income, respectively.
Reports on a Year
Every Tennessee LLC and company is required to submit an annual report. This report confirms the company’s fundamental facts, such as its primary office location and registered agent.
The report may be submitted with the Secretary of State either online or by mail. It is due on the first of the fourth month after the end of the fiscal year of the firm. The registration charge for an LLC is $300, whereas the filing price for a corporation is $20.
Step 2: Obtain a Tennessee Certificate of Good Standing.
Once your company is in good standing with the state, you may apply to the Secretary of State for a Tennessee certificate of existence. This may be done online or in the mail.
Is a Certificate of Good Standing Required in Tennessee?
While you don’t always need a certificate of existence to operate a company in Tennessee, there are a few situations when you may. These are some examples:
Purchasing commercial insurance
Applying for commercial loans
Setting up a business checking account
Getting a business license in another state