If you are aiming to set up a business in Tennessee, you need to acknowledge the legal obligations of the state’s Business Law. This will allow you to ensure that all your company operations are carried out legally, and that you comply with all safety standards. Requirements of owning and managing a business vary by its type, scale, and purpose. Abiding by the law and protecting yourself at all legal fronts will safeguard you in the event of various anomalies, including
- Consumer and employee claims + lawsuits
- Fine and penalties for legal violations
- Breach of security
- Intellectual property theft
- Bad faith insurance
- Several types of fraud and scams
1. Choose the right structure for your Business
It is very important to understand your business needs, goals, and growth potential before you choose the structure of your company. You may opt for sole proprietorship if you are going to manage a small company singlehandedly. This type of structure is ideal for offering individual services based on a learned skill; for example, you could be an architect, chiropractor, or an independent artist. The owner of a sole proprietorship files company taxes under their own name, thus they will be held responsible for any legal action initiated against their business.
If the business is going to be managed by more than one person then general partnership would be a good option. For instance, if three friends are running a business together, they can secure equal shares in it. If a legal liability arises, each of them will be equally responsible to compensate for the damages. The sole proprietorship and partnership structure is suitable for small and localized businesses that have a limited customer base; hence, the probability of getting sued or facing a big financial loss is very low.
If you are looking for a more formal business structure then you can choose between LLC and Corporation. Both structures allow business owners to keep the business assets separate from their personal assets. LLCs and Corporations are best for businesses that aim to employ a large workforce and expand over time. Corporations are more complex, as they are meant to conduct business on an international level.
2. Choose an Original Name for your Firm
The next requirement is a unique and original name for your establishment, in order to get it registered as a legit business. If the name you come up with is already taken by another company in the state, your registration will be denied. It is also vital to check that a matching domain name is available because online presence is not something you can leave out. For example, if your company is called ‘Sam Tacos’ but the closest usable domain name is ‘Samtacos34’, you should consider something less generic.
3. Get Registered
After finalizing the company name and structure, you are supposed to file the formation paperwork with the state. If you opt for a LLC in Tennessee, you will submit the ‘articles of organization’ to the secretary of state. The registration process can be initiated in person, online, and via conventional mail. For corporation, business owners have to file the ‘domestic for-profit corporation charter’ with the secretary of state.
4. Trademark your Brand
Trademarks are a representation of your company's identity. Trademark Registration and Counseling Attorney in Nashville, TN, can help protect your brand at a competitive price. Exclusive names, slogans, symbols, logos, and graphics help identify original products and services, i.e. consumers will be able to tell your goods apart from competitors and copycats in the market. The trademark restricts others from selling similar goods and services under your company's name nationwide. Since the main objective of a trademark is to prevent deceit and confusion, it may not be applicable to every product and service.
