A legal document known as an operating agreement describes the composition, policies, and procedures of an LLC. Although an operating agreement is not required by Tennessee law, it is strongly advised that LLCs have one. An operating agreement helps shield the LLC’s limited liability status, prevent disagreements between members, and define each member’s roles and obligations.
An operating agreement should still be in existence even if an LLC only has one member. In order to shield the member from personal liability, an operating agreement can aid in establishing the LLC’s distinct legal personality.
An LLC must have a registered agent in Tennessee. A registered agent is a person or organization chosen to receive legal paperwork and notices on the LLC’s behalf. A Tennessee resident or a company with a Tennessee business license must serve as the registered agent. Although an LLC member can serve as the registered agent for the LLC, hiring a qualified registered agent is advised to guarantee that legal paperwork are received on time.
Tennessee’s LLC formation procedure is impacted by a number of variables, including the filing method and processing time of the Secretary of State’s office. The processing time for online filings of the articles of organization is typically one business day. The processing time can take up to two weeks if the Articles of Organization are submitted by mail.
Finally, although though an operating agreement is not required by Tennessee law, it is strongly advised that LLCs have one. An operating agreement helps shield the LLC’s limited liability status, prevent disagreements between members, and define each member’s roles and obligations. LLCs must also have a registered agent, who may be a company member or a professional registered agent. The length of time it takes to incorporate an LLC in Tennessee varies, but if done online, it can be completed in as little as one business day.