Tennessee (United States of America)

The government of Tennessee is organized under the provisions of the 1870 Constitution of Tennessee, first adopted in 1796. As set forth by the state constitution, Tennessee's government is divided into three branches: Legislative, Executive, and Judicial branches.

• The Tennessee General Assembly, the state legislature, consists of the 33-member Senate and the 99-member House of Representatives;
• As set by the Constitution, Tennessee's governor is the Supreme Executive Power. He or she is responsible for enforcing state laws and the state constitution;
• The Judicial branch is headed by the Tennessee Supreme Court. It is composed of a chief justice and four associate justices.

In 2019, the real GDP of Tennessee was $330.8 billion. The GDP per capita of Tennessee was $48,440 in 2019.

Tennessee has a reputation as a low-tax state and is usually ranked as one of the five states with the lowest tax burden on residents.. Tourism contributes billions of dollars every year to the state's economy, and Tennessee is ranked among the Top 10 destinations in the nation. Tennessee's electric utilities are regulated monopolies, as in many other states. As of 2019, the Tennessee Valley Authority owned over 90% of generating capacity.

Currency:

United States Dollar (USD)

The corporate laws of Tennessee are user-friendly and often adopted by other states as a standard for testing corporate laws. As a result, the corporate laws of Tennessee are familiar to many lawyers both in the US and internationally. Tennessee has a common law system.

Type of Company/Corporation:

One IBC supply incorporation in Tennessee service with the common type Limited Liability Company (LLC) and C-Corp or S-Corp.

Business Restriction:

The use of the bank, trust, insurance, or reinsurance within the name of the LLC is generally prohibited as limited liability companies in most states are not allowed to engage in a banking or insurance business.

Company Name Restriction:

The name of each limited liability company as set forth in its certificate of formation: Shall contain the words "Limited Liability Company" or the abbreviation "L.L.C." or the designation "LLC";

• May contain the name of a member or manager;
• Must be such as to distinguish it upon the records in the office of the Secretary of State from the name on such records of any corporation, partnership, limited partnership, statutory trust or limited liability company reserved, registered, formed or organized under the laws of the State of Tennessee or qualified to do business.

• May contain the following words: "Company," "Association," "Club," "Foundation," "Fund," "Institute," "Society," "Union," "Syndicate," "Limited" or "Trust" (or abbreviations of like import).

Company Information privacy:

No public register of company officers.

Just 4 simple steps are given to start a business in Tennessee:

• Step 1: Select basic Resident/Founder nationality information and other additional services that you want (if any).
• Step 2: Register or log in and fill in the company names and director/ shareholder(s) and fill in the billing address and special request (if any).
• Step 3: Choose your payment method (We accept payment by Credit/Debit Card, PayPal, or Wire Transfer).
• Step 4: You will receive soft copies of necessary documents including Certificate of Incorporation, Business Registration, Memorandum and Articles of Association, etc. Then, your new company in Tennessee is ready to do business. You can bring the documents in the company kit to open a corporate bank account or we can help you with our long experience of Banking support service.

* These documents required to incorporate a company in Tennessee:

• Passport of each shareholder/beneficial owner and director;
• Proof of residential address of each director and shareholder (Must be in English or certified translation version);
• The proposed company names;
• The issued share capital and par value of shares.

Read more:

How to start a business in Tennessee

Share Capital:

There is no minimum or a maximum number of authorized shares since Tennessee incorporation fees are not based on the share structure.

Director: 

Only one director required 

Shareholder:

Minimum number of shareholders is one 

Tennessee company taxation: 

Companies of primary interest to offshore investors are the corporation and the limited liability company (LLC). LLCs are a hybrid of a corporation and a partnership: they share the legal features of a corporation but may choose to be taxed as a corporation, partnership, or trust.

• Us Federal Taxation: US Limited Liability companies structured for partnership tax treatment with non-resident members and which conduct no business in the US and which have no US-source income are not subject to US federal income tax and are not required to file a US income tax return.
• State Taxation: US limited liability companies that conduct no business in the recommended states of formation with non-resident members are generally not subject to state income tax and are not required to file a state income tax return.

Financial statement

Local Agent:

Tennessee law requires that every business have Registered Agent in the State of Tennessee who may be either an individual resident or business that is authorised to do business in the State of Tennessee

Double Taxation Agreements:

Tennessee, as the state-level jurisdiction within the US, has no tax treaties with non-US jurisdictions or double tax treaties with other states in the US. Rather, in the case of individual taxpayers, double taxation is minimised by providing credits against Tennessee taxation for taxes paid in other states. 

In the case of corporate taxpayers, double taxation is minimised through allocation and appointment rules related to the income of corporations engaged in multi-state business. 

License Fee & Levy:

A separate $15 business license registration fee must be paid to the county and/or municipal clerk for each new business. Once you register for business tax, please contact the individual county and/or municipal clerk to arrange for payment of this required fee and to obtain your business license. It takes up to 10 business days for the Department of Revenue to register your business.

Read more: 

• Tennessee trademark 
• Tennessee business license 

Payment, Company return due date:

Tennessee Filing Due Date: Your business tax return is due on the 15th day of the fourth month following the end of your fiscal year. For example, if your fiscal year coincides with the calendar year, then your return will be due on April 15.