Steps to Establish a Sole Proprietorship in Tennessee
- Choose a business name
- File an assumed name
- Apply for licenses, permits, and zoning clearance
- Obtain an employer identification number (EIN)
Advantages of a Sole Proprietorship
- Simplicity
- Full control
- Easy to dissolve or change form
Setting Up a Fictitious Name in Tennessee
- File a Business Tax License Application with the county clerk’s office where you will operate
Unlimited personal liability; Hard to raise money; Limited life.
With an LLC, you get liability protection and tax flexibility that sole proprietorships don’t.
Steps to Start a Business in Tennessee
- Come up with a business name
- Register your business name
- Obtain business licenses and permits
- Get an EIN
- Open a business bank account
How much does it cost to register a sole proprietorship in Tennessee?
A sole proprietorship is the simplest business form in Tennessee. To register, you can just start working under your legal name and use your Social Security Number as your tax ID. However, you might want to use a business trade name.
Sole proprietorships don’t protect your personal assets. If you form an LLC, your personal assets are protected in the event of a lawsuit.
The filing fee is determined by the number of members upon filing of the Articles of Organization. The minimum filing fee for an LLC is $300, and the maximum is $3,000.