There are a variety of start-up companies in Tennessee that you can form right from for profit corporations to limited liability companies (LLC), general partnerships (GP), limited partnerships (LP), limited liability partnerships (LLP), and much more. This is possible due to the good business climate and solid infrastructure. As a matter of fact, the state has also witnessed 42,914 new entity filings over the last twelve months with 237,921 businesses filing annual reports. The key business indicators suggest sustained economic growth in the volunteer state. The business climate however is driven by several aspects including various programs that provide incentives and salient benefits to all types of businesses being formed in the state.

Business Growth Incentive for New Businesses

Should you register a new company in Tennessee? The state of Tennessee witnessed 9,837 new entity filings (initial filings) by the 4th quarter of 2018, which is a strong 10.3% increase as compared to the same quarter last year. The number of start-up e quarter last year. The number of Tennessee includes 1,301 domestic “For-Profit” Corporations, 6,139 domestic LLC and 1,606 foreign business entities in the 4th quarter. There are a few advantages that play a key role in new entity formation and some of them are:

Advantage#1: The benefits of Incorporation or LLC formation

Corporation

• “Low or No” Taxes: One of the key advantages that you can enjoy if you register a new company in Tennessee are low or no taxes. These tax benefits are provided by a variety of state entities including the Tennessee Department of Economic Development and Tennessee Valley Authority among others. The Low tax or no tax translates into better bottom line for new businesses in the state. Some of them are:
  – No personal income tax
  – No sales tax on raw material
  – No sales tax on pollution control equipment
  – No state sales tax on manufacturing equipment
  – Reduced sales tax on energy fuel used by manufacturers
  – 1% tax credit on capital equipment
• Pass through Taxation: If you register a new company in Tennessee as an S corporation then the corporation or firm will not pay any income tax. Instead, the income or loss of the corporation will be passed on to the stockholders.
• Independent Life: One of the salient advantages of an S Corporation in Tennessee is that it enjoys an independent life. The death or incapacitation of a stockholder will not disturb operations of the business.

LLC

• Flexible Profit Distribution: A start-up company in Tennessee which is an LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.
• Tennessee Economic Development Incentive Programs: A start-up company in Tennessee, entrepreneurs, and small businesses require different forms of assistance to ensure sustainability of their start-ups and short or long-term growth. Hence, programs have been created to ensure businesses can achieve their short-term and long-term goals and these include:
  – FastTrack Infrastructure Program
  – Job Tax Credit
  – FastTrack Economic Development Fund
  – Enhanced Job Tax Credit
  – FastTrack Job Training Assistance Program
  – Industrial Machinery Tax Credit
  – Sales Tax Exemption program
• Limited Liability: As an owner of a Tennessee LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.

Advantage#2: Top Business Incentive Programs in Tennessee

Once you register a new company in Tennessee, there are several business incentives and programs that your company can benefit from. Let’s take a look at some of the top programs:

• Valley Incentive Programs: The “Valley Incentive Programs” contains several different sub programs that provide economic incentives of varying degree. If you register a new business in Tennessee, you can benefit from the programs, which provide the following:
• Investment Credit: The Investment Credit program is an economic development incentive program that is being offered jointly by TVA and various local power companies. This is a performance-based program that rewards business entities that are establishing as new or star-ups or existing businesses planning expanded operations. The awards as a part of the program are applied as a credit to the monthly power bills of businesses. A business entity can expect as much as 10-20 percent savings annually and this is over a 5 or 10 year period.
• Loan Funds: This is another program targeted at a start-up company in Tennessee. Financing is made to newly established businesses in the state and the objective of this program is to stimulate job growth as well as leverage capital investment. The maximum loan amount available to businesses is $3 million and loan terms can vary from 5 to 20 years.

Are there any Disadvantages of Incorporating in Tennessee?

As a start-up company in Tennessee, you will be able to enjoy several benefits in the form of tax credits, grants, loans, and Opportunity zone programs, assistance in Infrastructure and Facilities Improvement, and much more. So, the big question is – are there any disadvantages? In reality, there are no disadvantages as such except the ones that are specific to the type of business you register like an LLC has a limited life and can get dissolved if a member dies. Similarly, incorporation can lead to higher overall taxes and this is where you can find relief in the form of the tax credit programs.

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Why is the “Volunteer State” considered one of the best places to form a new business? It is interesting to note that the Real GDP of Tennessee in 2016 was $287.776 billion, which is a +11.92% change since 2011 when the GDP was $257.138 billion. One of the best hubs to form a Tennessee business is the “Middle Tennessee” where your business can enjoy several advantages including:

• A climate that supports business in a variety of industries and growth
• Cap on inventory or franchise tax for distribution or warehousing facilities
• Benefit from a variety of tax incentives on machinery to be used for manufacturing and distribution
• Highly skilled and abundant workforce
• Jobs Tax Credit Program and other tax credit programs
• Highly-developed transportation system
• Reliable TVA electric power

We are one of the top Tennessee registered agents and can assist you with the successful registration of your business entity in the state.

Let’s take a look at how you can form a Tennessee business LLC or Corporation.

Tennessee LLC Registration and Formation

LLC company formation in Tennessee is governed by 2010 Tennessee Code, Title 48 – Corporations and Associations, Chapter 249 – Tennessee Revised Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in Tennessee then you will be required to continuously maintain a registered agent in the state pursuant to T.C.A. § 48-249-109. This law is applicable to domestic limited liability companies as well as foreign limited liability companies.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Tennessee. We can assist you to form a Tennessee business LLC.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in Tennessee is identifying a name for your business entity. The process is as follows:

1. Identify a unique name for your business entity
2. According to T.C.A. § 48-249-106, the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC”.
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
4. Apply for reservation of name pursuant to the provisions of T.C.A. § 48-249-107 for a domestic and foreign LLC.
5. Submit the form though mail or online with the Department of State, Corporate Filings along with the applicable fee. An LLC can reserve its name for a period of 4 months.
6. A foreign LLC will have to register their name pursuant to T.C.A. § 48-249-108.

Step#3: Certificate of Organization and Application for Registration

If you are planning to form a Tennessee business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file an “Articles of Organization” pursuant to T.C.A. § 48-249-202.
• If your business entity is a foreign LLC then you will be required to file “Certificate of Authority” pursuant to T.C.A. § 48-249-904.
• The Articles of Organization and Certificate of Authority of domestic and foreign LLC can be filed with the Office of the Secretary of State – Business Services Division, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a Tennessee business, feel free to call us on 702-871-8678.

Tennessee Corporation Registration and Formation

The formation of a Tennessee Corporation will be governed by the 2015 Tennessee Code, Title 48 – Corporations and Associations, For-Profit Business Corporations. If you are planning to form a Corporation in Tennessee then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in Tennessee then you will be required to continuously maintain a registered agent in the state pursuant to TN Code § 48-15-101 (2015). This law is applicable to domestic as well as foreign corporations.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Tennessee. We can assist you to form a Tennessee business as we are in compliance with all regulations in the State of Tennessee.

Step#2: Corporate Name Reservation

In order to form a corporation in Tennessee, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:

1. Identify a name for your business entity
2. According to TN Code § 48-14-101 (2015), a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or any other corporation
4. Apply for reservation of name pursuant to TN Code § 48-14-102 (2015).
5. A foreign corporation would be required to register their name pursuant to TN Code § 48-14-103 (2015)
6. Submit the form though mail or online with the Office of the Secretary of State of Tennessee along with the applicable fee. A business corporation can reserve its name for a period of 4 months.

Step#3: Business Corporation Charter and Certificate of Authority

If you are planning to form a corporation in Tennessee, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will be required to file a “Charter” pursuant to TN Code § 48-12-102 (2015).
• If your business entity is a foreign corporation then you will be required to file a “Certificate of Authority” pursuant to the provisions of TN Code § 48-25-103 (2015).
• The application or documentation for registration of a corporation can be filed with the Office of the Secretary of State – Business Services Division, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding Tennessee incorporation or LLC formation, you can simply visit the Tennessee Business formation page.

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Didn’t find answer to your question? Email as at info@incparadise.com

Once your company is set up, you will need:

1. Tax ID (EIN) – free over the Internet or phone.
2. Yearly Requirements and Fees for Texas companies – Both domestic limited liability companies and foreign limited liability companies doing business in Texas are subject to the state franchise tax. Questions regarding the franchise tax should be directed to the Comptroller of Public Accounts, Tax Assistance Section, Austin, Texas, 78774-0100.
3. Company Minutes & Stock Certificates – are included in incorporation. You will have access to documents generated on your client account.

Texas additional services

• Registered Agent
• Annual Report
• EIN (Tax ID)
• More Additional Services

• Why Texas?
• Texas Registered Agent
• Texas Annual Requirements
• Texas Corporation Statutes: Texas Code: Business Corporation Act – Part 2

• Why Texas?
• Texas Registered Agent
• Texas Annual Requirements
• Texas LLC Statutes: Texas Code: Business Corporation Act – Part 2; [ Title 32, Chapter 18, Article 1528n