Professional LLC in Tennessee: Everything You Need to Know

What is a Professional LLC in Tennessee?
A Tennessee PLLC is a limited liability company (LLC) formed specifically by people who will provide Tennessee licensed professional services. Like other LLCs, PLLCs protect their individual members from people with claims for many (but not all) types of financial debts or personal injuries.
Read more on www.nolo.com

For licensed professionals including doctors, lawyers, architects, and accountants, Tennessee has a type of LLC called a Professional Limited Liability Company, or PLLC. It was established as a limited liability business to offer expert services. Each member of a PLLC needs to hold a valid state-issued professional license. Professionals can establish a business using this sort of business structure while retaining their professional licenses and minimal liability protection.

In Tennessee, an LLC with obligated members is one where the members are required to render individual services to the LLC. Professional service providers like law firms, accounting firms, and medical offices frequently use this kind of LLC. Any malpractice or negligence claims resulting from the LLC’s services are individually accountable by the members of this sort of LLC.

All members of an LLC that is member-managed have an equal say in how the company is run. This indicates that every member has the right to take part in how the company makes decisions. A manager is chosen by the members of an LLC that is administered by a manager to oversee day-to-day activities. The manager is accountable for the LLC’s success or failure and is charged with making decisions on its behalf.

Tennessee taxes both the federal government and the state on LLCs. Tennessee requires LLCs to pay a $300 annual franchise tax. Every year on April 15th, this tax is due. LLCs are further liable to federal income tax. But LLCs are not subject to entity-level taxation. Instead, the LLC’s gains and losses are distributed to each individual member, who then reports them on their individual tax returns. You must submit Articles of Organization to the Tennessee Secretary of State in order to establish an LLC there. The name of the LLC, the name and address of the registered agent, the purpose of the LLC, the names and addresses of the LLC members, and the name and address of the person submitting the Articles of Organization must all be included in the Articles of Organization. The LLC is formally established once the Secretary of State accepts the filed and authorized Articles of Organization.

In conclusion, a professional LLC in Tennessee is a kind of LLC created especially for individuals with a license. An LLC with obligated members is one in which the members are required to render individual services to the LLC. The degree of control the members have over business administration distinguishes a member-managed LLC from a manager-managed LLC. Tennessee taxes both the federal government and the state on LLCs. You must submit Articles of Organization to the Tennessee Secretary of State in order to establish an LLC there.

FAQ
Then, can you get a tennessee business license online?

Yes, you can apply for a business license in Tennessee online on the website of the TN Department of Revenue. To finish the application procedure, you must first establish an account and then follow the instructions. It’s crucial to keep in mind, though, that based on the type of your company, you could also need to apply for extra licenses and permits from other state organizations.

Leave a Comment