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Tennessee Business Law Questions & Answers
1 Answer | Asked in Business Law for Tennessee on
Q: If you are the only member of a LLC and it is dissolved - can you represent the LLC in legal matters?

If someone is one (and only) listed member of an LLC, can they represent the LLC in legal (civil) matters? LLC has been dissolved.

Anthony M. Avery
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answered on Sep 26, 2023

If the LLC is dissolved, then it has no legal matters. Members receive both assets and liabilities, and have legal proceedings against them personally. Sometimes it may be prudent to reinstate the LLC without others knowing. That member needs an attorney.

1 Answer | Asked in Business Law and Contracts for Tennessee on
Q: Can you use your DBA when signing a lease in TN?

The contract lists the DBA and not the actual name - is that still legal?

Anthony M. Avery
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answered on Sep 26, 2023

If the other party to the lease contract accepts that name as a signature, then it supposedly becomes a contract. But I would never advise anyone to execute a contract in that function. It may be unenforceable. Usually a signature would be ...John Doe d/b/a Doe Services...

2 Answers | Asked in Business Law for Tennessee on
Q: If I were to ask for a discount, whether it was at a restaurant or store, would they have to provide me one?

If someone went to a grocery store and asked for a discount or coupon, would the business have to legally provide one?

Anthony M. Avery
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answered on Aug 25, 2023

No, there is no legal obligation.

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1 Answer | Asked in Real Estate Law and Business Law for Tennessee on
Q: I have a LLC in which I’m the majority member.

I have a LLC in which I’m the majority member. My partner did a hard money loan without my permission to purchase a property and the property ended in foreclosure. The hard money lender stated that there is still 25k to fulfill the lender and he will put a lien on the company. What can I do?

Anthony M. Avery
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answered on Aug 14, 2023

Does the LLC have an Operating Agreement, By-Laws, etc.? If so, then it must be read carefully to see how property of the LLC can be encumbered or money borrowed. If not, probably only the managing member had the power to borrow for the LLC. Lender must get a Judgment first before having a... View More

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: How do you change the members and owners of a multi-member LLC?
Anthony M. Avery
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answered on Jul 28, 2023

If there is a n Operating Agreement then look at that for any controlling terms. More than likely the Managing Member simply designates new members. A new owner would need to notify the State Secretary of State of their new manager status. But it is also dependent on what State the LLC is... View More

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: can the treasurer of a non profit, an officer of the corporation, also serve on the board of directors? State is TN
Matthew Morris
Matthew Morris
answered on Jul 20, 2023

There is nothing to prevent the treasurer from serving on the board of directors in Tennessee, assuming that there is nothing in the bylaws that would prevent this.

The only requirement for serving on the board under the Tennessee Nonprofit Corporation Act is that “All directors must be...
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1 Answer | Asked in Employment Law and Business Law for Tennessee on
Q: i got in trouble for a conversation I had in the break room. I never consented to recording. Is that illegal?

I was having a conversation with some coworkers about our bosses. The convo was heated, and all the employees were upset. We all got called out and in trouble for talking bad, but the only way they knew was from the camera recording in the corner. There was no consent i signed to be audio... View More

Maurice Mandel II
Maurice Mandel II
answered on Jul 10, 2023

Video or audio taping of a person without their knowledge or consent can be "wiretapping," and it is illegal in most states. The issue is are there any warning signs at the workplace that advise you there is taping or are security cameras in place? If so, you have been provided warning.... View More

1 Answer | Asked in Business Law, International Law and Internet Law for Tennessee on
Q: Domain Registrar- cheated.Not added purchased domain to my acct- due to selling it at higher price -refunded the money.

Dear sir, I am 56 years male living in india! Most unimaginable fraud commited by NETWORK SOLUTIONS LTD ( My registrar). I have registered a domain name connect.com with NETWORK SOLUTIONS (My registrar) based in Virginia! Checked the availability of the name in Network solutions website search... View More

James L. Arrasmith
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answered on Mar 19, 2023

I'm sorry to hear about the fraud you experienced with Network Solutions. It's important to take action as soon as possible to try to rectify the situation.

You may want to consider contacting Network Solutions again and explaining the situation to a manager or supervisor. Provide...
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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.... View 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 Copyright, Business Law, Intellectual Property and Trademark for Tennessee on
Q: Could I use black label as a company name or no?

I am establishing a small business and coming up with a company name is confusing to say the least. We will be a soap and skincare company.

James L. Arrasmith
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answered on Feb 25, 2023

It's difficult to give a definitive answer without knowing more details about your business and the products you plan to sell, but in general, using "Black Label" as a company name may be problematic because it's a common term that is used by many companies in various... View More

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... View More

1 Answer | Asked in Consumer Law, Banking, Business Law and Identity Theft for Tennessee on
Q: What to do when someone fraudulently cashes a check?

Someone fraudulently cashed a check I sent to pay my trash bill. The trash company never received it, so they still say I owe the bill. Who is responsible for getting the money - the bank, or the trash company?

John Michael Frick
John Michael Frick
answered on Jan 13, 2023

Most likely you.

If someone intercepted a check you wrote to pay a bill and wrongly cashed it, you can legally pursue that person and possibly your own bank as well as the bank that cashed the check.

But you do still owe your trash company and should pay it. This time I recommend...
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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... View 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... View 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. -... View More

1 Answer | Asked in Business Law for Tennessee on
Q: I own 79% of a Tn LLC my partners assaulted me can I remove them and sell the business

I went to pay payroll at my quarry. My partners secretly came into town and surprised me and held me at gun point taking my company truck physically assaulting me taking my laptop my card cards, then proceeded to erase my emails my domains on line trying to erase my existence in my business. I have... View More

Mr. James Charles Wright
Mr. James Charles Wright
answered on Oct 11, 2022

What you are describing sounds terrible. You should likely contact the police to report this. Beyond this as to next steps with the business- will depend on your LLC governing documents. It will have procedures relating to the management, control and operation of the company.

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
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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.

1 Answer | Asked in Business Law and Contracts for Tennessee on
Q: Can an IT company sell prepaid service or block of time and set an expiration date for those services to be used?

If 25 hours of service is purchased can they have an expiration date on when those service hours can be used?

Bennett James Wills
Bennett James Wills
answered on Jul 20, 2022

Generally, yes. And if you do not like the terms and conditions of the purchase, then you do not need to do business with that provider.

For example, I just personally purchased an online continuing education course. I have to complete the course by October, or I lose the ability to access...
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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... View More

Michael Ray Smith
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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...
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1 Answer | Asked in Real Estate Law, Business Formation, Business Law and Land Use & Zoning for Tennessee on
Q: Can my real estate partner sell the property which we built and I operate my small business on? What are my rights and

Options for keeping my portion of the land that my business is located? If we cannot agree to subdivide the majority of the entire property into lots for resale, with him getting reimbursed for all of his expenses prior to me drawing any shares from the sale, will the property be ordered... View More

Anthony M. Avery
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answered on Jun 27, 2023

Consult with an attorney to either work out your differences, or dissolve the partnership/sue for partition of real property.

1 Answer | Asked in Car Accidents and Business Law for Tennessee on
Q: A big brand dealership did and engine repair on my car and they forgot to put coolant in it.It overheated and broke down

They sent someone to pick us up and told me to leave my key in the car and it would be towed within the hour. It sat on the side of the road for 7 days and it was vandalized and it's totaled. The dealership said my insurance has to do the claim bx they aren't responsible for it . Is that right?

Joel Gary Selik
Joel Gary Selik
answered on Jun 19, 2023

If they agreed to get it and you did not know they did not do so, you have an argument they are responsible. If your insurance pays they may pursue the dealership.

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