Tennessee is the 17th most populous of the 50 American states. It is the state that gave birth to many forms of American popular music like rock and roll, blues and country. Tennessee’s major industries are agriculture, tourism, and manufacturing.

It is a corporate mecca for some of the nation’s largest companies like FedEx and Nissan.

Benefits of incorporating in Tennessee:

Protection of personal assets

Foreign entrepreneurs incorporating in Tennessee should feel confident knowing that their personal assets are well protected. Corporations and limited liability companies separate the assets and liabilities of companies from the personal assets of the business owner.

Ability to open bank account

Forming a company is the first step for a non US resident to open a bank account. A US bank account gives businesses access to a debit card, and the potential to open a merchant service account. Internet commerce is made much easier with a US bank account because companies like PayPal, Amazon and EBay considered you more qualified as a vendor.

Enhanced credibility

Whether starting a new business or incorporating an existing one, incorporation makes a business appear more credible to potential customers, suppliers and investors. You also have the security of operating under US law.

Your corporate name can boost your brand

Tennessee requires that C corporations and LLC not have a name that is the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you choose a unique C corp or LLC name. A unique corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

The type of business entity you choose determines the nature of the taxes your business will be subject to. C-corps are taxed based on their net income. LLCs will be subjected to an entity-level tax. C-corps and LLCs are subject to a franchise tax.

Residency Requirements

Tennessee does not have any residency requirements. Owners and directors do not need to live in state to legally operate a Tennessee company. Before your firm is legally eligible to operate make sure you possess all the required business licenses, permits, and tax registrations. Inc. Plan can help you stay in compliance with state law.

Other incorporating requirements

C corps and LLCs must have at least one member/owner. State law requires that the names and addresses of C corp directors (not owners) appear in the incorporation documents. Tennessee requires that all businesses obtain a state tax identification number. Tennessee does not have any age restrictions on who can own a corporation or LLC.

Requirements for forming an LLC in Tennessee:

When forming a Limited Liability Company certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

Tennessee LLCs must contain the terms “Limited Liability Company” or the abbreviations “LLC” or “L.L.C..” Tennessee restricts the terms “Bank”, “Trust”, “Mortgage” or “Credit Union”, unless the company obtains an approval from the Department of Financial Institutions.

LLC filing requirements

Entrepreneurs looking to start an LLC in Tennessee must file articles of organization with the state. LLCs are also required to file an annual report due on or before the fourth month following the close of the fiscal year. The filing fee for an annual report is $50 per member.

Required information for the Article of Organization

The Articles of Organization must contain the name and address of a registered agent who resides in Tennessee and who is available to manage legal and tax business documentation. For more help with the initial organizational filing and with finding registered agent services feel free to contact Inc. Plan (USA.)

LLC taxes and fees

Tennessee LLCs are subjected to the following taxes: an entity-level tax and a franchise tax based on the company’s net worth or property owned inside the state. LLCs are not subject to the state corporate income tax unless they elect to be taxed as a C corporation.

Requirements for forming a C corporation in Tennessee:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C corporations established in Tennessee are as follow:

Name requirements for C corporations

Tennessee allows organization names that include the terms “Company,” “Corporation,” “Incorporated” or “Limited,” along with their abbreviations. Entrepreneurs who wish to include the terms “Bank,” “Trust,” “Mortgage” or “Credit Union” in the name of businesses must obtain approval from the Department of Financial Institutions.

Filing requirements in Tennessee

Entrepreneurs looking to start businesses in Tennessee must file a formation document called a Charter. The state also requires businesses to file an annual report due on or before the fourth month following the close of the fiscal year. The filing fee for an annual report is $20.

Required information for the Charter

A company charter is required to list authorized shares along with their assigned par value. It must also include the name of a registered agent with a physical address in Tennessee. Formation fees are not based on the capital structure. Inc. Plan (USA) can help you with the necessary filings and also with qualified registered agent service.

Taxes and fees requirements

C Corporations are subject to a corporate income tax at a 6% rate. C corps must also pay a franchise tax which is calculated based on a company’s net worth or property owned in Tennessee. The minimum franchise tax is $100. Businesses that wish to hire employees in Tennessee are required to obtain an EIN (Employee Identification Number.)

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.



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