How to Start an LLC in Tennessee
- Choose a Name for Your LLC.
- Appoint a Registered Agent.
- File Articles of Organization.
- Prepare an Operating Agreement.
- Comply With Tax and Regulatory Requirements.
- File Annual Reports.
How do you register a LLC in Tennessee?
- Organizing a Tennessee LLC or PLLC. To register a Tennessee LLC, you submit the completed Articles of Organization to the Tennessee Secretary of State, Business Services Division. File the articles by mail, in person or online. The filing fee is $50 per member with a $300 minimum and $3000 maximum fee.
- 1 What taxes does an LLC pay in Tennessee?
- 2 How long does it take to get an LLC approved in Tennessee?
- 3 Can I set up LLC myself?
- 4 Does an LLC have to generate income?
- 5 Do I have to renew my LLC every year?
- 6 What is better LLC or sole proprietorship?
- 7 Do I need a business license in TN?
- 8 How do I get an EIN number in Tennessee?
- 9 Do I need a registered agent for my LLC?
- 10 Do I need an EIN for my LLC?
- 11 Should I get an LLC before starting a business?
- 12 What if your LLC makes no money?
- 13 What can I write off as an LLC?
- 14 Do LLC get tax refunds?
What taxes does an LLC pay in Tennessee?
By default, LLCs themselves do not pay federal income taxes, only their members do. Tennessee, however, imposes a franchise tax and an excise tax on most LLCs. You must register for this tax through the Department of Revenue (DOR). You can register by mail or in person at a DOR location.
How long does it take to get an LLC approved in Tennessee?
How long does it take to form an LLC in Tennessee? Filing the Articles of Organization takes 24 hours online, 3 to 5 business days by mail.
Can I set up LLC myself?
You may be able to set up an LLC by yourself, especially if you’re a single-member LLC. Do your research and head to your state’s business formation website to determine the exact paperwork you need.
Does an LLC have to generate income?
An LLC does not necessarily need to make any income to be considered an LLC. In fact, any small business can structure themselves as an LLC so long as they follow the state’s rules for forming one. If an LLC does earn income, then that income will be “passed through” to the LLC’s owners for federal income tax purposes.
Do I have to renew my LLC every year?
Do I need to renew my LLC every year? The renewal fee for a limited liability company, or LLC, has to be paid every one or two years, with the frequency varying by state. The LLC business entity is created at the state level. It has the qualities of both corporations and partnerships.
What is better LLC or sole proprietorship?
One of the key benefits of an LLC versus the sole proprietorship is that a member’s liability is limited to the amount of their investment in the LLC. Therefore, a member is not personally liable for the debts of the LLC. A sole proprietor would be liable for the debts incurred by the business.
Do I need a business license in TN?
If you are located in Tennessee and are subject to the business tax you must obtain a Business License. If you have an in-state location with sales of more than $3,000, you must obtain either a minimal activity license or a standard business license from your county and/or municipal clerk.
How do I get an EIN number in Tennessee?
If applying online isn’t an option, you can also complete an EIN application by mail or fax by sending Form SS-4 to the IRS fax number 855-641-6935. You can even get an EIN over the phone if the company was formed outside the U.S. by calling 267-941-1099. If filing by phone, note that it isn’t a toll-free number.
Do I need a registered agent for my LLC?
No matter where you’re starting your business, if you’re forming an LLC or corporation, you’re required to have a registered agent and a registered office.
Do I need an EIN for my LLC?
An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number.
Should I get an LLC before starting a business?
You don’t need an LLC to start a business, but, for many businesses the benefits of an LLC far outweigh the cost and hassle of setting one up. You can also get those things by forming a corporation or other type of business entity. It’s also perfectly legal to open a business without setting up any formal structure.
What if your LLC makes no money?
Even if your LLC didn’t do any business last year, you may still have to file a federal tax return. But even though an inactive LLC has no income or expenses for a year, it might still be required to file a federal income tax return. LLC tax filing requirements depend on the way the LLC is taxed.
What can I write off as an LLC?
The following are some of the most common LLC tax deductions across industries:
- Rental expense. LLCs can deduct the amount paid to rent their offices or retail spaces.
- Charitable giving.
- Tangible property.
- Professional expenses.
- Meals and entertainment.
- Independent contractors.
- Cost of goods sold.
Do LLC get tax refunds?
Do LLCs get tax refunds? Generally, no. However, LLCs can elect to be treated like C corporations for tax purposes by filing Form 8832. If an LLC elects C corporation status and makes quarterly estimated payments higher than its tax liability for the year, the LLC can receive a tax refund.