Starting a new business in Tennessee requires registration with the state authorities and adoption of a business license with local regulatory bodies. Similar to other states, there are all manner of different types of corporations that can be formed in the state of Tennessee. Business law in Tennessee allows for sole proprietorships, limited liability corporations and all manner of other types of corporations. Understanding what type of corporation it is that you require can be a difficult matter indeed, as they all offer different levels of liability and responsibility. Once you have decided upon the type of business and proprietorship that you require, it requires only a nominal fee to enlist in the ranks of Tennessee business.
Understanding Local Business Law
Business Law in Tennessee is somewhat similar to other states, as there are all manner of bylaws and regulations that must be followed. In the process of corporation, it is the responsibility of the proprietor to ensure that the name under which they incorporate is free and clear from all trademarks and registration. In this way, it relieves the powers that be from the duties of ensuring that there are not multiple individuals trading upon the same name. In the case of those who do trespass upon trademark, it is the duty of the maligned party to correct the situation. The business law in Tennessee bylaws and caveats specifically make mention of directors, officers and agents of corporations and their shareholders. Directors and officers do not necessarily have to be shareholders, but it is not prohibited. In the case of those who wish to open a business in Tennessee but not reside there, it is entirely possible to operate a foreign corporation from outside the boundaries of Tennessee with some limitations. Selling and distributing in the state of Tennessee does not require a local license, providing that you are incorporated in some other state.
Termination or Dissolution of Business
Dissolution of a business in Tennessee requires notification to the registered agent that represents your company to the state within a certain timeframe. The process is actually somewhat simple and simply requires notification of dissolution of business. Once the notice is made, if there are no grievances or objections, the information is filed away and the dissolution is put on record. There are no penalties for dissolution of business in Tennessee and any director or officer of the corporation can file this instrument, providing that they have the consent of the other controlling officers and registered agents.
