A Limited Liability Company (LLC) is a well-liked business form that combines the tax advantages of a partnership with the liability protection of a corporation. Is an LLC privately held? is among the most frequent queries made by business owners and entrepreneurs. A privately held business is one that has a small number of stockholders and is not publicly traded on a stock exchange. We must go more into the qualities of an LLC in order to respond to this query.
By definition, an LLC is a privately held company. Its members, who may be people, businesses, or other LLCs, own it. In contrast to corporations, LLCs do not issue shares of stock; instead, ownership is based on the proportion of membership interests that each member owns. Transfers of ownership necessitate the consent of all other members and membership interests are not openly traded.
In Tennessee, forming an LLC is a rather simple procedure. Choosing a name that is original and complies with state naming regulations is the first step. The next step is to submit your articles of incorporation and pay the necessary fee to the Tennessee Secretary of State’s office. The LLC’s name, address, registered agent information, and members’ names and addresses should all be listed in the articles of establishment. According to Tennessee law, LLCs must also submit an annual report to the Secretary of State’s office in order to keep their status as active.
You might be wondering if you require a business license if you operate as a lone owner in Tennessee. The answer relies on a number of variables, including your business’s location and industry. Although there is no statewide business license in Tennessee, certain cities and counties do have local business license requirements. A state license is furthermore necessary for some occupations, including contractors and cosmetologists. For more information, it is a good idea to contact your local government and the Tennessee Department of Commerce and Insurance.
There is no formal registration need for sole proprietorships in Tennessee because they are not considered independent legal entities from their owner. However, you must file a trade name registration with the county clerk’s office if you use a business name that is distinct from your legal name. Each county has a different registration fee, and you have to renew it on a regular basis.
Last but not least, Series LLCs—a relatively new type of LLC that permits the development of many series or cells within a single LLC—are not recognized in Tennessee. Each series is protected from the liabilities of the other series and is allowed to have its own members, assets, and liabilities. In some states, series LLCs are popular because they provide more flexibility and cost savings. However, the creation of Series LLCs is not permitted by Tennessee law.
To sum up, an LLC is a privately held company by default that is owned by its members and not listed on the stock market. Articles of formation and an annual report must be filed with the Secretary of State’s office in Tennessee to establish an LLC. Depending on their region and type of business, sole owners might need to register their trade name and obtain a business license. Series LLCs are not recognized in Tennessee. Before deciding on a business structure and launching a firm in Tennessee, it is wise to have legal and accounting assistance.