The revised Tennessee LLC Act gives Tennessee-based LLCs more freedom and clarity. By establishing default policies that can be changed by the operating agreement, it also gives LLC members more protection. The Act is applicable to all Tennessee LLCs created on or after January 1, 2017, as well as to any existing Tennessee LLCs that want to be regulated by the new Act.
The limited liability rule is one of the Tennessee Revised LLC Act’s most significant characteristics. According to this rule, LLC members are not held personally accountable for the debts or liabilities of the business. The personal assets of the members are thereby safeguarded in the event that the LLC is sued or declares bankruptcy. However, the members may be held accountable for a specific duty if they personally guaranteed a loan or debt.
Another significant statute that controls LLCs is the Delaware Limited Liability Company Act. Delaware’s advantageous business regulations and tax system make it a favored state for LLC formation. Similar limited liability protection is offered to members by the Tennessee Revised LLC Act and the Delaware LLC Act.
The Tennessee Revised LLC Act permits a specific kind of LLC called an obliged member entity. This kind of LLC is created to carry out a professional service, such accountancy, legal, or architecture. Entities that are required to be members must have a minimum of one member that is authorized to perform the professional service provided by the LLC.
In order to establish a Professional Limited Liability Company (PLLC) in Tennessee, you must register with the relevant licensing board and submit a Certificate of Formation to the Secretary of State. The PLLC must also maintain compliance with state laws and have a registered agent in Tennessee.
The Tennessee Revised Limited Liability Company Act, in conclusion, offers crucial standards for LLCs doing business in Tennessee. It provides members with more flexibility and protection, and it defines default policies that the operating agreement may change. The Act also lays forth precise instructions for incorporating a PLLC in Tennessee and permits the creation of obliged member organizations.
The Tennessee Secretary of State’s office must receive your completed Articles of Organization if you want to establish a PLLC (Professional Limited Liability Company) there. The name of the PLLC, the reason it was created, the address and name of the registered agent, and the names of the PLLC’s members should all be included in these articles. Additionally, you will need to get any licenses or permits required for your line of work. To make sure you comply with all regulations for setting up a PLLC in Tennessee, it is advised that you speak with a lawyer or a qualified business service provider.