Filling an LLC in Tennessee

[Jimmy Warr]

I know you can file for a LLC on your own, but I do not understand why several people are charging obscene amounts to file them for you? Are they doing something different than what you can do yourself ? Also I know in TN it's around $300, do that include it being recorded and is there anything else a newbie should know before moving forward with doing the LLC ?

[Matt Horwitz]

Hi @Jimmy Warr, this group you mention will likely do the exact same thing that you would. An attorney would also (in terms of the Articles of Organization), except for the Operating Agreement (in most cases). TN LLCs are $300 to setup, then $300 every year. Here are the steps if it helps:

1. LLC Name. Search your desired LLC name to make sure it's unique and available to use. Here's the TN database search page: https://tnbear.tn.gov/Ecommerce/NameAvailability.aspx. LLC designator: your LLC name must end with LLC, L.L.C., or Limited, Company.

2. Registered Agent. Choose a Registered Agent for your LLC. A Registered Agent is a person or company who agrees to accept legal mail on behalf of your LLC in case your business gets sued. Your Registered Agent must have a street address in Tennessee (PO Boxes are not allowed). You can list yourself, your LLC, a friend, or a family member as the LLC's Registered Agent. You can also hire a professional Registered Agent (called a Commercial Registered Agent). Once you make this decision, you'll include this info. in step 3.

3. File Articles of Organization with the TN Secretary of State. Can be filed by mail, but quicker and easier to file online online: https://tnbear.tn.gov/NewBiz/. Filing fee is $300 (unless LLC has more than 6 members). LLCs filed online in TN are instantly approved. You'll receive a stamped and approved Articles of Organization and Acknowledgment Letter in PDF format.

4. LLC Operating Agreement. Sign an Operating Agreement, which states who the LLC owners (called members), how much they own, how profits are split, how taxes are paid, how the LLC is managed, and more.

5. Federal Tax ID Number (EIN). Wait for LLC approval from state, then apply for EIN with the IRS. Can all be done online in 10-15 minutes and it is free. Only available M-F, 7am-10pm. https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

6. LLC bank account. Open LLC checking account. Call around and shop rates. Most banks charge monthly maintenance fees, but a few do not. Bring stamped and approved Articles of Organization, EIN, and driver's license.

7. Annual Report. This is $300 per year (unless LLC has more than 6 members). It must be paid by the 1st day of the 4th month after the end of your LLC's fiscal year. Most likely you'll use the calendar year (Jan 1 - Dec 31), so yours will be due by April 1st each year. Can be filed by mail or online, but online is easy: https://tnbear.tn.gov/Ecommerce/AnnualReportInstr.aspx. Tennessee favors digital filings. If you file online, you’ll receive a success message and be able to print out your Annual Report to save for your records.

Hope that helps!