According to a report by the Brookings Institution, the state of Tennessee is ranked #1 among all U.S. states where advanced industry job growth is concerned and this growth has been steady since 2013. The advanced industry jobs have been growing at a rate of 4.6 percent annually and this is more so because this industry has witnessed higher number of incorporation in Tennessee. Today, the advanced industries employ approximately 249,617 full-time workers with an additional 199,690 indirect jobs. The revenue generated by this industry is $39.7 billion and this accounts for 14.3 percent of the economic output of the Volunteer State.
What makes Tennessee a great business destination? High Expectations, Pro-Business Regulatory Environment, and Low Debt!
Why Choose Tennessee for Incorporation?
A stable and evolving business-friendly environment is one of the reasons behind the rise in company incorporation in Tennessee. This is not all; the state is ranked #2 for being the lowest state and local taxes paid per capita (fiscal year 2012) and has achieved the “Triple A” rating status from all major rating services.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
- Tennessee Opportunity Zones: The Tennessee Opportunity Zone Program has been designed to ensure flow in of long-term capital especially in low-income communities. If you set up company in Tennessee and in any of the qualified opportunity tracts then you can benefit from tax credits and other incentives. There are 176 census tracts in Tennessee that offer the following advantages:
– Retail, commercial and tourism development opportunities
– Business development
– Brownfield redevelopment opportunities
– Low-income housing development opportunities
– Community and rural development initiatives
– Proximity to technology transfer offices, entrepreneur centers, and universities
List of Opportunity Zones
- Financial Programs: There are several financial programs that you can benefit from post company incorporation in Tennessee. These financial incentives are being made available by the Tennessee Department of Economic & Community Development (TNECD) and the most popular programs for businesses are:
– Manufacturing Sales Tax Exemption
– State sales tax credit for qualified personal property
– Sales tax exemption on Warehouse
– State sales tax exemption for industrial machinery
– Tax exemption sales of international telecommunication and interstate telecommunication services
– Enhanced Job Tax Credit program
How do you incorporate in Tennessee?
What is the process of incorporation in Tennessee? What type of documentation is required? These are some of the common questions that you will be confronted with if you planning to start a new business in the state. The following steps will enable understanding of the entire process:
The first step towards incorporation in Tennessee is choosing the type of business you want to form. You can choose to form an LLC or a Corporation. The type of business entity you want to form can be domestic or foreign entity. The forms and fee will be different for each type of entity.
Business Entity Name
One of the most important steps towards incorporation in Tennessee is naming your business entity. You have to start by identifying, searching, reserving, or registering the business entity name. There are 3 steps towards business name formation and they are:
- Naming Requirements: A business name pursuant to T.C.A. § 48-249-106 and § 48-249-903 for domestic and foreign LLC and TN Code § 48-14-101 for business corporation should contain words like “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.” or similar abbreviation.
- Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
- Name Reservation: Once you have identified business entity name, and if the name is available then you can reserve the name pursuant to T.C.A. § 48-249-107 for an LLC and TN Code § 48-14-102 for a business corporation. Reservation of business name for incorporation in Tennessee will be effective for a period of 4 months.
- A foreign business entity will have to register their business name pursuant to T.C.A. § 48-249-108 for LLC and TN Code § 48-14-103 for profit corporations.
Choose a Registered Agent
Whether you form a corporation or an LLC business entity, in order to transact business in the state of Tennessee, you will have to maintain a registered agent pursuant to T.C.A. § 48-249-109 for LLC and TN Code § 48-15-101 for Business Corporations.
We are one of the respected registered agents in Tennessee and will be responsible towards initiating incorporation in Tennessee through processing of your “Articles of Organization”, and “Charter” for domestic entities and “Certificate of Authority” for foreign business entities.
Charter and Certificate of Authority
You will be required to submit “Charter” if your business is a domestic corporation and a “Certificate of Authority” if it is a foreign business entity. In order to streamline the process of incorporation in Tennessee, we can file documents on your behalf through the online process or through expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Tennessee, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Tennessee Incorporation
What would it cost to set up company in Tennessee? Check Fees here!