Why form a Tennessee LLC?
There are many reasons that smart business people decide to form a LLC. Chief among these reasons are to protect their personal assets from a lawsuit. The liability protection is afforded to you when you file a LLC. The LLC creates a separation from you as an individual from that of the company. Protect yourself and file today.
Tips on naming your LLC
Limited Liability Company names must include a designator, which can be either Limited Liability Company or LLC. A business name is considered available if the name is distinguishable from any other active entities listed in the Business Services database. Names must be distinguishable from other corporations, LLC and LLPs. The company name is not distinguishable by differences in punctuation, conjunctions, or prepositions. Also, the name is not distinguishable by using different legal descriptions such as LLC vs. Limited Liability Company. Restricted words include Mortgage, Bank, Trust, Credit Union, and Cemetery (if business is a cemetery for humans), these restricted words would require consent from the appropriate state department prior to filing with for the articles of organization.
How many members can a LLC have?
An LLC may be formed with one member, or multiple members. The duty of each member may be listed in the operating agreement (information below).
What is an operating agreement?
An operating agreement is a type of contract that divides different management duties amongst its owners. This lays out things such as ownership interest, each member's responsibilities, etc. With the operating agreement you may also add or remove members at any given time. This might be required by the company when dealing with any financial issues, such as mortgages or loans.
How is an LLC taxed?
An LLC the “pass through” advantage, where the profits or losses of the LLC can be claimed in the owners personal tax returns. If there is more than one member, each member (according to the operating agreement) claims its own share from the LLC in each of the owner’s tax return.
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