You formed a LLC in Davidson County... What are your next steps?
After forming a LLC by filing an Articles of Organization with Tennessee's Secretary of State, there are several additional steps you need to take to ensure your business complies with statutory guidelines.
- Required – Obtain federal tax identification number (EIN).
- Required – Obtain necessary business licenses.
- Required – Open a business bank account and begin establishing establish clear separation of business and personal assets.
- Required – File an annual report with the state of Tennessee and pay filing fee.
- Recommended – Create an operating agreement.
- Recommended - Issue membership interest certificates to owners (members) and record in membership transfer ledger.
- Recommended - Hold and document initial meeting of members (and also the managers, if your LLC is manager-managed).
- Recommended – Hold and document annual meeting of members (and managers, if your LLC is manager-managed).
Obtaining a Business Tax License in Davidson County
- Obtain and remit a business tax license to the Davidson County Clerk.
- The fee for a business license or minimal activity license is $30.00 if you are located in the USD (Metro) and $15.00 if you are located in the GSD (County only).
Annual report and franchise tax
- Tennessee requires LLCs to file an annual report and pay a franchise tax.
- The annual report is due on or before the first day of the fourth month following the close of the LLC’s fiscal year. The filing fee is $50 per member, with a minimum fee of $300 and a maximum fee of $3,000. This report can be filed online.
- The franchise tax is due the 15th day of the fourth month following the close of your fiscal year. It is calculated based on the LLC’s net worth or real and tangible property in Tennessee. The minimum tax is $100.
Operating Permits in Davidson County
- Operating in a residential or commercial area: You may need to apply for a Use and Occupancy Permit. Contact the Metro Nashville Department of Codes & Building Safety – Property Standards Division at (615) 862-6590 to obtain complete information regarding current requirements.
- Operating a small business from your home: “Home Occupation Permits” are required for all home occupations and may be obtained through the Department of Codes & Building Safetyat a cost of $50.00. Contact the Zoning Division at 862-6510 to obtain complete information regarding current requirements. The basic limitations include: There can be one employee associated with a home occupation that is not a resident on the property. There can be no signs or advertising of a business at the residence (except in the areas of child care, or tutoring). One vehicle, not exceeding an axle load of 1.5 tons is permitted, but no advertising is permitted on the vehicle. A reliable “rule of thumb” is: if you can see it, hear it, or smell it, the business is not allowed as a home occupation.
Business Accounting and Taxes
- It is essential to the success of every business to have a CPA who is a great accountant AND has a thorough understanding of Tennessee’s tax laws. The success of your business can depend on this person’s skill and knowledge.
- Collins Legal endorses Craig Ballentine (CPA, MBA) with Patterson, Hardee and Ballentine, PC.
- Davidson County Clerk: (615) 615 862-6050
- Metro Nashville Department of Codes & Building Safety: (615) 862-6500
- Tennessee Secretary of State: (615) 741-2286
- Craig Ballentine, CPA, MBA with Patterson, Hardee and Ballentine, PC: (615) 750-5537 x204,firstname.lastname@example.org