Lawyers, Answer Questions  & Get Points Log In
Tennessee Business Formation Questions & Answers
1 Answer | Asked in Criminal Law, Employment Law, Business Formation and White Collar Crime for Tennessee on
Q: I am founder of a new nonprofit in TN. I have felony from 2013 (UE).repaid all monies, no other criminal record.

Can I be an officer/manger on my board if I have felon from another state? I had an over payment for unemployment of 11,033.38 (including a $5,000 fine) ALL of which I REPAID in full. the nonprofit that I am starting is a community building project teaching beginning farmers from low income and... Read more »

Anthony M. Avery
PREMIUM
Anthony M. Avery
answered on May 23, 2023

I am not aware of any disability from running a TN non-profit entity. If you already formed it, then apparently the TN Secretary of State has no problem. Since it is from another State, noone here may know about it at this time, and who would want to remove you anyway? You might look into... Read more »

1 Answer | Asked in Employment Law, Business Formation and Business Law for Tennessee on
Q: Can I have people employed in one S Corp that are meant to work between 2 shared ownership LLCs?

We have 2 LLCs that have partial shared ownership, 2 people are owners in both, 2 more are owners in just one. We are hoping to have an S Corp that is owned by the 2 that own both to employ everyone that currently works in the LLCs to consolidate and simplify things for employees and compliance.... Read more »

Mr. James Charles Wright
Mr. James Charles Wright
answered on Mar 10, 2023

You could set up an entity to provide employees to both and then be reimbursed by both entities for the employees. Or the employees could be employed by one entity and when they work for the other - the other entity reimburses the first entity for the time of the employees.

1 Answer | Asked in Contracts, Business Formation and Business Law for Tennessee on
Q: If my LLC doesn't have an operating agreement and a member decides to leave do they owe the company for any debt?

A member has decided, of their own will, to leave the LLC. The LLC is in debt and doesn't have an operating agreement. Does the withdrawing member owe any money to the LLC as buying themselves out?

Bennett James Wills
Bennett James Wills
answered on Jan 24, 2023

Depends on the debt. Are they personally obligated? Is the business just in debt? Or does it have a positive fair market value? Typically, without an operating agreement, when a member quits the LLC pays fair market under TCA 48-249-505. But there are other considerations as well. Consult counsel... Read more »

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: Is there a list of requirements to ensure a tire/car detail shop is up to code?

I am looking to open up a car detail/ tire shop and want to ensure I am not in any violations when looking for a location.

Bennett James Wills
Bennett James Wills
answered on Dec 14, 2022

There's not so much a list but various items you may want to look at - for example, codes and zoning. Make sure where you open up shop, you are permitted to operate. Then you'd want to check the environmental laws on disposal of tires and fluids. And then other statutes like the consumer... Read more »

1 Answer | Asked in Business Formation, Business Law and Contracts for Tennessee on
Q: How do I handle a potential business partner I don't really wanna pay 50 percent or even less.

I have an online business that I made with a friend but everything is in my name included the LLC but he is in a good amount of the footage that our online course provides but his name is literally on nothing except for about half of the videos. I do think he should be payed something but how do I... Read more »

Mr. James Charles Wright
Mr. James Charles Wright
answered on Oct 26, 2022

Your post indicates that you are the only member of the LLC and from this I am assuming all of the online content is owned by either you or the LLC. You don't indicate the agreement with this other person - and you likely should discuss this with a lawyer rather than creating another post. -... Read more »

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: My general partner in our L.P. has recently died. How do I (limited partner) undergo converting to a sole proprietorship

My father (general partner) in our Limited Liability corporation has recently died and me (the limited partner) needs to convert the business to a sole proprietorship. What form can I access in order to undergo the conversion? If not, is a general partnership a better idea? Thank you.

Anthony M. Avery
PREMIUM
Anthony M. Avery
answered on Aug 2, 2022

No form is going to meet your objective, and you are confused about LPs and LLCs. Hire an attorney to examine the business and its assets, and then advise a course of action. Sole Proprietorship means you individually own it. It may be very simple, instead of a formal Dissolution.

2 Answers | Asked in Business Formation and Business Law for Tennessee on
Q: Im going to start an ecommerce website. I do I need an LLC out the gate to protect myself?

Im wanting to start an ecommerce website. Do I need a LLC to protect myself just to test the business and the market. However, I do have an ok savings but I do not want to get sued. I'm scared that I would lose my personal savings if I don't.

What I mean by testing the business... Read more »

Michael Ray Smith
PREMIUM
Michael Ray Smith
answered on May 17, 2022

I'm not a Tennessee attorney, but the answer to your question would be more or less the same in any state.

I agree with Mr. Wright. Yes, you should have an LLC out of the gate. A corporation is another alternative, but an LLC is generally the structure of choice for small...
Read more »

View More Answers

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: How to get copy of partnership of a firm registered in 1980s
Bennett James Wills
Bennett James Wills
answered on Feb 15, 2023

The Tennessee Secretary of State's Office may have information. Contact the business services department.

1 Answer | Asked in Tax Law, Business Formation and Business Law for Tennessee on
Q: Can I use my Virginia formed LLC in TN?

I have an electricians license in TN as well as local business licenses. I have registered to pay business tax and franchise and excise tax on Tennessee. I live in Virginia and have formed my LLC in Virginia. Am I okay to use my local TN business licenses and my TN electrical license to perform... Read more »

Bennett James Wills
Bennett James Wills
answered on Apr 1, 2022

You could register your VA LLC in TN as a foreign entity.

1 Answer | Asked in Business Formation, Business Law and Trademark for Tennessee on
Q: How do I get licensed to sell tumblers and products that say tennessee or vols in my small business
Mr. James Charles Wright
Mr. James Charles Wright
answered on Mar 20, 2022

Try this web site:

https://clc.com/

1 Answer | Asked in Business Formation, Copyright and Trademark for Tennessee on
Q: Can I use business name "Bath and Body Goods" or "Bath & Body Goods" without being sued by "Bath & Body Works"?
Marcos Garciaacosta
Marcos Garciaacosta
answered on Dec 12, 2021

Very likely you will get sued. Don't do it.

1 Answer | Asked in Business Formation and Contracts for Tennessee on
Q: Can a business partner Sue someone with no contract or agreement signed in state of Tennessee
Mr. James Charles Wright
Mr. James Charles Wright
answered on Nov 6, 2020

There is an old saying that anyone can sue anyone for anything. The question would be whether someone can sue over an oral agreement? Most oral agreements are valid. There are a number of exceptions. For instance a contract for the sale of real estate must be in writing.

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: What kind of license do I need to manufacture and sell cosmetics (NOT drugs) in Tennessee (Handcock county).

I have contacted every agency I can think of in Tennessee to find out if I need a license to manufacture lotions, soap and Bath Bombs in Tennessee. Everyone says they know if no requirement. If this is true, is there a county or city license I need?

Mr. James Charles Wright
Mr. James Charles Wright
answered on Oct 30, 2020

You would need a business license for the city / county where you are dong business. Beyond this the soap products are regulated -

I am attaching below a link that may help you get some guidance....
Read more »

1 Answer | Asked in Business Formation, Business Law and Contracts for Tennessee on
Q: How can an Architect w/ his own Firm (S-Corp, Prof. Corp.) in TN have a 50/50 financial partnership w/ a non-Architect?

Can he be a 50/50 shareholder?

Mr. James Charles Wright
Mr. James Charles Wright
answered on Oct 12, 2020

Look at TCA 62-2-601 and 602 - This explanation is from the State's website: A corporation, partnership, or firm offering architectural, engineering, or landscape architectural services to the public may engage in the practice of architecture, engineering, or landscape architecture in... Read more »

1 Answer | Asked in Business Formation for Tennessee on
Q: What must I do to make my incorporated corporation a professional corporation in Tennessee?
Mr. Kent Thomas Jones Esq.
Mr. Kent Thomas Jones Esq.
answered on Aug 6, 2020

You should be able to get a form online from the Secretary of State Business Services website. Make sure and check whether it can be done online, because some changes must be mailed in.

1 Answer | Asked in Business Formation and Health Care Law for Tennessee on
Q: As a pharmacist, am I able to virtually counsel patients from other states? Are they 'virtually' in TN?

Hello, I am a Pharmacist in Tennessee, and I want to start an online pharmacist consulting business involving reviewing patient's medications, recommending optimal therapy based on best evidence, answering drug information questions and providing cost-savings by finding cheaper alternatives... Read more »

Paul E. Tennison
PREMIUM
Paul E. Tennison
answered on May 18, 2020

You are likely in need of a business attorney to advise regarding these points. I recommend you consult with an attorney for detailed answers to these questions and deeper discussions of potential legal risks in this new business plan and ways you may mitigate that risk.

The law generally...
Read more »

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: Where do I file my LLC if I have a new company never registered with the state, but moved to a new state?

My business is registered with the IRS under my home address which was in Tennesee. My company is an outreach (home health) service that does not have a physical location. The services will be provided in Tennessee only at this time, however, I (the owner & founder) moved to Mississippi. Do I... Read more »

Paul E. Tennison
PREMIUM
Paul E. Tennison
answered on Sep 30, 2019

If you are providing the services in Tennessee, then you should likely either incorporate in Tennessee or you could file in MS and also file in Tennessee as a foreign LLC transacting business in Tennessee. For a deeper discussion of the pros and cons of each option, I recommend you speak with an... Read more »

2 Answers | Asked in Contracts, Business Formation and Business Law for Tennessee on
Q: LLC partner never paid his share of funds for the business and is now In prison for many years 2 mos after filing LLC.

How can I remove him from the LLC without dissolving my company? I asked him to sign papers to remove him and he refused. He never paid anything toward the business or filings for any of our licenses. He is in debt to the company for his legal fees and using the business credit to fund personal... Read more »

Bennett James Wills
Bennett James Wills
answered on Sep 30, 2019

You could file a lawsuit against him to have his membership interest terminated. Consult with local counsel to review the LLC's operating documents to determine your best course of action.

View More Answers

1 Answer | Asked in Business Formation, Business Law, Civil Litigation and Contracts for Tennessee on
Q: this is owned by my father and his company... this is being used illeagly

WEALTHBUILDER Trade Mark

Tim Akpinar
Tim Akpinar
answered on Sep 21, 2019

You chose good categories, but what you describes sounds like trademark infringement. Try reposting in the Trademark (and maybe Intellectual Property) category(s). It would have a better chance of being seen by an attorney who is knowledgeable in this area. Good luck

Tim Akpinar

1 Answer | Asked in Business Formation and Real Estate Law for Tennessee on
Q: i am loaning money for a house flip. I will have a promissory note. Is that enough to protect my investment?

The house is to be short term leased from the current owner during the renovation, so the person I am loaning to won't own the property until the day before it is re-sold.

Leonard Robert Grefseng
Leonard Robert Grefseng
answered on Sep 5, 2019

NO- if I were you, I would not loan money on real estate without a lien on that real estate. If the deal goes bad, you want to be able to force a sale of the property to get your money back. The current owner will need to sign the note and a deed of trust/mortgage.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.