In Tennessee, creating a Limited Liability Company (LLC) is a fantastic way to safeguard personal assets and reduce liability for debts and obligations incurred by the company. To continue to remain in conformity with state law, there are some obligations that must be met, just like with any other corporate company. The selection of a registered agent is one of these prerequisites.
A person or business named as the LLC’s registered agent will accept legal documents on its behalf. Important notices, legal actions, and other written documentation fall under this category. The registered agent must be accessible to receive documents during regular business hours and have a physical location in Tennessee. Without a registered agent, an LLC runs the risk of missing crucial deadlines and incurring penalties.
LLCs must submit an annual report to the Secretary of State in Tennessee. The report must be submitted by the first day of the fourth month following the fiscal year end of the LLC. The name and address of the LLC’s registered agent, as well as details about the LLC’s members and managers, must be included in the Annual Report. If an Annual Report is not submitted, the LLC may be administratively disbanded.
In Tennessee, LLCs are taxed as pass-through businesses, which means that the company does not pay taxes on its own revenue. Instead, the LLC’s individual members receive the earnings and losses and record them on their individual tax returns. However, LLCs in Tennessee are required to pay a franchise tax depending on either their net worth or the value of their real estate. On or before April 15th of each year, the franchise tax is payable.
Regardless of whether they owe taxes or not, all LLCs in Tennessee must submit a franchise tax return. Information about the LLC’s assets, liabilities, net worth, and property valuation must all be included in the return. A $300 minimum franchise tax is required of LLCs with net worth or property values under $300,000.
It’s not difficult to locate a registered agent in Tennessee. Along with numerous businesses that focus on offering registered agent services, the service is also provided by individual lawyers and accountants. A list of registered agents who are permitted to conduct business in Tennessee is also available on the website of the Tennessee Secretary of State.
Having a registered agent is essential to upholding compliance for an LLC in Tennessee, to sum up. It ensures that the LLC receives crucial legal documents on time and stays out of trouble with the law. Additional responsibilities that should not be disregarded include completing an Annual Report and a franchise tax report. An LLC can run efficiently and profitably in Tennessee by adhering to certain regulations.