What is the difference between a home based business and an LLC?

The main benefit of an LLC is legal protection. Sole proprietorships may be fine for small home-based businesses, but when a business starts dealing with larger sums of money and multiple customers and clients, it’s a good idea to separate the business from the individual—and forming an LLC allows for that.

Should my home business be an LLC?

Limited liability protection is created by forming and maintaining an LLC or corporation. A home staging business might benefit from starting a corporation if outside investors are important. Any home staging business that doesn’t need outside investors will do better at tax time by choosing an LLC.

How to register a limited liability company in Tennessee?

File documents to form or register a new business with the Tennessee Secretary of State. File or prepare an Annual Report for a business entity registered in the State of Tennessee. Form to cancel Limited Liability Company reserved name. Form to change or cancel a Limited Liability Company assumed name.

How to get a business license in Tennessee?

File for business permits and licenses. Tennessee LLCs must abide by all local, state, and federal regulations. The U.S. Small Business Administration (SBA) guide for federal business permits and licenses can help with this. Depending on the location and nature of your LLC, additional permits and licenses may apply.

How much does it cost to set up a Tennessee LLC?

The filing fee ranges from $300 to $3,000, and a $50 fee applies for each LLC member. Set up your operating agreement. This isn’t required in Tennessee, but is recommended for multi-member LLCs.

When does a Tennessee LLC have to be dissolved?

Original signatures are not necessary. If this is not filed before 60 days after the deadline, the state may dissolve your LLC. File for franchise and excise taxes. All Tennessee LLCs must pay taxes annually on the value of the LLC.