"When people don't see your vision, it is because it's hard for them to support you when they can't see a vision for themselves...never let that stop you from making a difference in your community."
- Mary Burse-Wright
SHEpowHERs was founded December 24, 2022, shortly after the transition of its original founder, Mary Burse-Wright. However, it took a while to to become an LLC. Why you ask? A simple answer, because we didn't have the support.
However, our fearless leader, Sheena Adams-Avery, CDT, CDP, took it upon herself to fund our operation from her personal finances. She considered her grandmother's legacy and this organization's mission to be just that important. Nevertheless, she knew that in order to become a non-profit organization, she must first file for articles of incorporation and later take steps to become a 501(c)(3) non-profit organization. Later, she would engage with the community to ask for support.
In July 2023, she received documentation of incorporation from the state of Tennessee and SHEpowHERs, LLC was formed. While learning through observation and experience
How do you Form a Limited Liability Company (LLC) in Tennessee?
LLCs are very popular business structures that are inexpensive to form and provide flexibility to the owners. Forming an LLC legally establishes your business. We are not attorneys but we wanted to share these steps we learned about on our journey to incorporation for those who may be on their journey to starting a business.
Check Name Availability You want to ensure that the legal name of your LLC does not conflict with any other registered name. You can check your desired name by using the Tennessee Secretary of State's Name Search
Appoint a Registered Agent State law requires every LLC to have a registered agent. Before you officially file to create your Tennessee LLC, you will need to decide who your Tennessee registered agent will be. A registered agent is a business's legal appointee to receive notice of lawsuit and other legal or government notices.
File Tennessee Certification of Formation File the articles of organization (ss-4270) to create your limited liability company with the Tennessee Secretary of State - Division of Business Services. You can use the Tennessee Smart Guide for small business to assist you on this new journey. The Agency fee is $50 per member in existence on the date of the filing, with a minimum fee of $300 and a maximum fee of $3,000.
Establish Company Records Your LLC will need to keep accurate books and records. Your filed articles of organization are the first documents for your LLC’s records. You may event want to use a secure centralized tool for managing sensitive records.
Create the Operating Agreement A Tennessee LLC should have an operating agreement because a company cannot act for itself. In order to operate, LLCs require real humans (and other entities) to carry out company operations. So it is necessary to draft an Operating Agreement, which is the governing document for the LLC. It defines how the LLC will run itself like holding an annual meeting.
Hold the Organizational Meeting The organizational meeting is the first meeting of the members of the LLC. You will need your filed articles of organization and your operating agreement in order to conduct this meeting. Keep minutes of this meeting and store them in your company records.
Get a Federal Employer Identification Number (EIN) If your LLC has more than one member or will hire employees, it must obtain an EIN. An EIN is also often required to open a bank account.
Get Tennessee State Tax Identification Numbers/Accounts Tennessee offers a consolidated registration application for new business state tax registration. You will need to apply for a Tennessee Tax ID and guess what, it doesn't cost a thing!
Consider Electing S-Corp or C-Corp Taxation By default, your LLC receives pass-through taxation where businesses do not pay taxes on the entity level, instead the income passes to the owners of the business who pays personal income taxes for their share of the business, and the vast majority of LLCs keep this tax classification. Some LLCs benefit from electing S-Corp or C-Corp taxation.
Obtain Business Licenses & Permits To run your business legally, you must get applicable licenses and permits. You can use the Small Business Administration Business License & Permit look-up tool to help you navigate the wide range of federal, state, and local requirements.
Ongoing Filings to Maintain Your LLC Don't forget to pay your taxes! You must file federal and state tax returns. Tennessee requires LLCs to file an annual report and pay a franchise tax. The annual report is due on or before the first day of the fourth month following the close of the LLC's fiscal year. So make sure you file an annual report to maintain good standing with the secretary of state. Click this form link to prepare your form online then print and mail.
Here are some additional Business Forms & Fees. If you are at all confused by the paperwork, it is best to contact a lawyer or filing service to assist you.
Now that we are officially incorporated we want to ensure that we empower others to be able to do the same. If you have a vision, it matters not whether anyone sees it, you can create whatever you envision.
*Stay tuned for an upcoming post on how we became a non-profit organization.
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