General Guide to Company Incorporation in Tennessee
Updated on Tuesday 15th May 2018
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Tennessee is in the southeastern part of the United States, it is known as the “Volunteer State” (named after the volunteer soldiers who fought in the 1812 war) and it is the 16th most populous in the USA. Appreciated for the well-developed agriculture, tourism and manufacturing, Tennessee welcomes foreign investors willing to perform their activities in these major industries and also in a wide range of other sectors. We have prepared a general guide to company incorporation in Tennessee which can support entrepreneurs who want to open companies in USA and need to know the main requirements. We mention that our company formation specialists in USA are here to provide foreigners with the necessary help at the time of company registration.
How to start an LLC in Tennessee?
Foreign investors who want to register a company in USA and particularly a limited liability company in Tennessee must begin the process with the Business Division part of the Secretary of the State of Tennessee. The Articles of Association are the main documents to provide to the registration authorities in Tennessee. These need to contain:
• the name of the company and the owners (their nationality and the country of residence);
• the name of each member of the board of the directors;
• complete information about the registered agents for the company in Tennessee;
• the type of activities this enterprise will operate in Tennessee;
• details about the business address of the firm in Tennessee.
If you would like to have information about how our team of company incorporation agents in USA can act on behalf of your business in Tennessee, please address your inquiries to our advisors.
What is an operating agreement in Tennessee?
An operating agreement is an internal document of a company which offers details about the owners and their responsibilities, the voting rights of the members, the capital contribution and information about how the company can be closed when it is the case.
How do I apply for EIN in Tennessee?
The Employment Identification Number (EIN) which is the federal tax ID is issued by the IRS (Internal Revenue Service) through the local office once the company’s documents are provided. Each company is seen as a taxpayer for which such tax ID is necessary.
Do I need to separate the personal assets from the LLCs’ properties?
Yes, in most cases, foreign investors should bear in mind that it is recommended to have different accounts for personal assets and for the company’s finances. You can easily open a bank account or more by choosing the proper financial institution that suits most the needs of the firm. If you want to start a business in USA, whether it is a branch or a subsidiary, it is best to observe the financial options, in order to separate the personal assets from the business expenses of your company.
Sales tax in Tennessee
The applicable sales tax on goods and services in Tennessee is set at 7% rate. Besides that, cities in Tennessee can apply their own city sales taxes. Depending on the type of acquisition, the taxes might differ.
Do I need accounting services for my company in Tennessee?
Yes, it is strongly recommended to hire the services of an accounting firm that can deal with varied accounting and financial matters. Payroll, the submission of the annual financial statements, and bookkeeping are only a few of the accounting matters which are necessary for companies in Tennessee. Please bear in mind that you can ask our team of company incorporation consultants for in-depth information about the accounting services you need in the firm.
Economy facts about Tennessee
Tennessee is a reputable business hub which hosts large international companies which sustain an important part of the state’s economy. As for the representative sectors of Tennessee, the agriculture plays a major role, the state being known for large productions of cotton that take the export road worldwide. Nashville is the capital of Tennessee and an important financial center sustained by the multitude of companies with establishments in this city. The tourism sector is extremely advanced considering the important places to see and the entertainment shows which take place frequently. Memphis is another significant city in Tennessee for business, alongside with Knoxville, Clarksville, Jackson, Chattanooga or Johnson City.
If you would like to know more about how to start a company in USA, including Tennessee, we invite you to contact our team of company formation representatives in USA.