Formation Documents: What Are They and Why Do You Need Them?

There are specific legal procedures that must be followed when forming a business in order to make sure that it is duly constituted and acknowledged by the state. The submission of formation papers with the Secretary of State’s office is one of these processes. But what are formation documents specifically, and why are they required?

The legal documents known as formation documents establish a business entity as a distinct legal person from its owners. In other words, the company has the legal right to contract, bring legal action, and transact business in its own name. Articles of incorporation for corporations, articles of organization for LLCs, and a certificate of limited partnership for limited partnerships are a few examples of formation documents.

The business’s name, registered agent, and business goal are just a few of the critical details that the formation paperwork provide in addition to establishing the company as a legal entity. The Secretary of State’s office normally makes this information accessible to the general public.

Let’s now respond to some similar queries: Do I have to register in Tennessee as a sole proprietor? You are not required to register in Tennessee as a sole proprietor. There are no formation documents required for sole proprietorships because they do not exist as independent legal entities from their owners. To run your firm, though, you might need to secure a few licenses or permits.

Yes, S companies are accepted in Tennessee. The income and losses of a S company are distributed to the shareholders and are taxed similarly to a partnership. The corporation must fulfill specific qualifying conditions and submit Form 2553 to the IRS in order to become a S corporation.

Depending on the type of LLC and the services you employ, incorporating an LLC in Tennessee might be expensive. There are additional costs for faster processing and other services in addition to the $300 filing price for a basic LLC. Working with a reputable business formation agency is advised to guarantee that all required paperwork is filed accurately and on time.

You can look out your company’s Secretary of State number by searching the Secretary of State’s business database if you have already submitted formation documents to the Tennessee Secretary of State. To locate your company’s record, which will include your Secretary of State number, just type in your business name or other relevant search terms.