To form a corporation in Tennessee, you’ll need to name it, choose a registered agent, hold an organizational meeting, file the Domestic For-Profit Corporation Charter and get an EIN. When naming your Tennessee corporation, you must follow state name requirements to ensure it’s distinguishable from existing entities. As a corporation, you can buy and trade stock. If you want to go public someday, it may be the best option.
Corporations allow income and losses to pass to shareholders to report on individual returns. They also limit owners’ personal liability. However, corporations in Tennessee pay a franchise tax between 0.25-0.5% of the base. You must file the charter and pay a $100 fee to form it.
Alternatively, LLCs have unlimited liability risk, but profits/losses pass directly to owners’ returns. Partnerships also have unlimited liability and pass income to partner returns. To start either, you still should choose a business name and registered agent and register with the IRS, Department of Labor and other agencies.
Steps to Form Your Corporation
If unfamiliar with formation processes, follow these steps:
- Decide on a name
- Choose a registered agent
- Hold an organizational meeting to draft bylaws and appoint initial directors
- File the charter
- Get an EIN
Use a professional service if needed. Costs range from $49-300+ depending on your needs.
The text regarding "How long does it take to form a corporation in Tennessee?" does not actually include information on the time required. Further details would be needed to provide a timeframe.