Many people have taken advantage of the Tennessee Secretary of State’s online filing system in order to form a company. This system has made it easier for a business owner to file the documents needed form a business, so I believe many are doing it without the assistance of a lawyer or CPA. Before filing the Articles of Organization, a business owner should thoroughly review all types of businesses, including S-Corps, C-Corps, LLCs, and LLPs to determine what type is the best for the business. An attorney will be able to help make the decision from both an ownership interest and liability standpoint, which a CPA or other tax professional can estimate the tax benefits and consequences of each for that specific type of business.
If you have filed for a new business in Tennessee and are wondering if you formed the correct business, it is not too late. Applications can be filed to change the company from one form to another, and I would be glad to discuss the options with you. Additionally, filing for the new business is just the first step we take when helping someone start a new business. By-laws and/or an operating agreement need to be drawn up for the business, as well as looking at a buy/sell agreement and other policies and procedures. Contact me today for a free consultation.
Luke D. Bottorff
Nashville Business Attorney
211 Printers Alley, Suite 400
Nashville, TN 37201