10 Essential Steps to Start Your Business in Tennessee
Starting a business is an exciting venture, but it can also be overwhelming. As experts in outsourced bookkeeping, we've created this step-by-step guide to help entrepreneurs in Tennessee launch their businesses successfully.
Choose a Unique Business Name
In TN, you can check for available names on the TN Secretary of State’s website https://tnbear.tn.gov/Ecommerce/NameAvailability.aspx
Establish a Business Address
For marketing and privacy purposes, it’s a good idea to have a physical location or PO Box registered to the business instead of your personal residence.
Select Your Entity Type and Fiscal Year
Just starting out, most businesses choose the route of creating a Limited Liability Company (LLC). This type covers single business owners, partnerships and allows for legal protection when safeguarding personal versus business assets.
Set Your Business Start Date
This is the day you will register with your state and federal governments. As soon as the business is registered, you will be liable to file tax returns in those jurisdictions.
Obtain an EIN and Register with the State
For this process, you will need to have the above information completed. In TN, you will register with the TN Secretary of State, https://tnbear.tn.gov/Ecommerce/RegistrationInstr.aspx
For the EIN, you can register online and get the number same day. https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
Open a Business Bank Account
This is crucial to keeping personal and business finances separate. They will likely ask for all of the information covered above so complete steps 1-5 first.
Secure Necessary Licenses and Tax Registrations
In TN, you can review license requirements here https://www.tn.gov/revenue/for-businesses/for-new-businesses/licenses-permits-registration.html
Register for state tax filings using TNTAP https://www.tn.gov/revenue/for-businesses/for-new-businesses/registration.html
Partner with a Professional Bookkeeper
Once the bank account is open, you are now ready to start tracking income and expenses. Feel free to reach out to us and we can get your business on track utilizing QuickBooks Online and provide other software and process recommendations as needed.
Plan for Federal Income Taxes
As you start your own venture, don’t forget to save for income taxes due each year around 4/15. As a general base, we suggest saving 20% of your income to cover this expense.
Develop a Comprehensive Business Plan
This can help avoid hurdles as the business scales. Ensuring key performance metrics and financial goals are laid out and being met will keep you on track for optimal growth.
For more detailed information, the TN Department of Revenue has created a step by step guide on their website here, which can easily guide you through any requirements and questions.
Ready to start your business journey but feeling overwhelmed by the financial aspects?
Let Simply Numbers take the stress out of your bookkeeping. Our expert team specializes in setting up and managing financial systems for new businesses. Don't let accounting challenges hold you back from achieving your entrepreneurial dreams. Contact us today for a free consultation and discover how we can help your business thrive from day one.
