Many business owners who opt to set up limited liability companies point to the liability protection that the business structure provides as a major reason for doing so. For legal purposes, LLCs are viewed as separate entities from their owners. This protects the assets of Tennessee business owners against any debt liabilities that a company incurs.
Starting an LLC
If you are a business owner thinking of establishing an LLC, you will need to register your business with the Tennessee office for the Secretary of State. The following steps are necessary to your business formation, and you can initiate these steps in person, online or through U.S. mail.
You first need to choose a name that is not already in use by another LLC in the state. Your name should comply with established requirements. You may also want to choose a name that has an available URL. This will make it easier to promote your goods and services online when it becomes necessary to do so.
Next, select a registered agent. The registered agent of your LLC is the person who will receive the tax and legal documents that pertain to your business. The registered agent you select must either be a resident of Tennessee or a registered agent service with permission to do business in the state.
Complete the Articles of Organization and Operating Agreement
The articles of organization will officially identify your business. The document includes information like your business name, the name of your registered agent, the business address and the services you will provide. Your LLC’s operating agreement will describe how the day-to-day operations of your business will work and should establish things like member voting rights, ownership interests and the allocation of profits and losses.
Obtain Your EIN
Your employer identification number is the nine-digit number assigned to you by the IRS and identifies your new LLC for tax purposes. You will need your EIN to:
• Open a business bank account
• File taxes and the state and federal levels
• Hire workers for your business
While establishing an LLC is something you can do on your own, it is a complex process that may benefit from the attention of an experienced professional. Setting up your business correctly is important to your potential success as a business owner, and you should make doing so a top priority.