It may be both exhilarating and overwhelming to launch a new company. Selecting a legal structure is one of the initial steps in launching a business. Limited Liability Company (LLC) formation is a common business decision in Tennessee. But what does it cost to register an LLC in Tennessee?
Tennessee charges a $300 filing fee for LLCs. You can pay this charge online or by check payable to the Tennessee Secretary of State. For faster processing or other services, like getting a certified copy of the filed documents, there can be extra expenses.
It’s crucial to weigh the advantages and disadvantages of each legal structure when comparing the price of establishing an LLC to others, such as a sole proprietorship. The simplest and least expensive legal form to set up is a sole proprietorship, but it does not offer the same level of liability protection as an LLC. The personal assets of an LLC’s owners are often shielded from business obligations and legal liabilities.
The first step in forming an LLC in Tennessee is to select a distinctive name for the company and confirm its availability with the Secretary of State. After that, submit the Articles of Organization along with the $300 filing fee to the Secretary of State. Create an Operating Agreement, which describes the LLC’s management, ownership structure, and other crucial information.
Additionally, businesses in Tennessee must register with the Tennessee Department of Revenue. There is no cost to register, and you may do it either online or by mail. A Sales and Use Tax Certificate of Registration, which enables the company to collect and submit sales tax, will be issued by the Department of Revenue.
In Tennessee, a business license is not necessary for every type of enterprise. Depending on the area and type of business, different requirements apply. A business license from that authority is typically required for operations within a city or county. Additionally, the state might demand a license for several occupations, including contractors and barbers.
In conclusion, a $300 filing fee is needed to create an LLC in Tennessee, and additional costs may be incurred for expedited processing or other services. A single proprietorship may be less expensive to start up, but an LLC offers the owners more liability protection. Articles of Organization, an Operating Agreement, and registration with the Tennessee Department of Revenue are required to form an LLC. The requirement varies by area and type of business, but not all Tennessee firms are required to have one.