Business Law Archives - Page 3 of 3

Technology and the internet have streamlined so many “official” processes that used to require hardcopy forms, the antiquated postage stamp, and worst of all- actual trips to and long waits inside government buildings. This is true for the creation of a limited liability company (“LLC”) in Tennessee. Thanks to an intuitive and easily navigable interface, the Tennessee Secretary of State’s website will allow you to create your own LLC (or Corporation or Partnership) with basic information and a credit card in less than 15 minutes’ time. The process is incredibly, perhaps deceptively, simple.

This is by no means a criticism of the online formation process; the website displays the requisite legal notices and makes the process more accurate and efficient. However, the ease with which an LLC can be created may also downplay the responsibilities of running the entity to new or prospective “Members” (LLC owners). It is not uncommon that we receive calls from Members seeking an explanation of the “administrative dissolution” of their company. Many assume that unless the LLC is conducting certain business or making money, there is nothing that needs to be done. Unfortunately, this is not the case.

Generally, there are two main culprits of administrative dissolution in these circumstances. The first is the annual report. Every LLC must file an annual report and pay an annual fee. These are usually due April 1 for the previous calendar year. The annual report is simple, and is predominantly concerned with any changes to the membership (ownership), registered agent, or address of the LLC. The annual fee is calculated in the same manner as the initial formation payment ($50/Member, with a $300 minimum and a $3,000 maximum). The report and payment can both be submitted online.

The second culprit is the Franchise and Excise Tax, which is imposed on nearly every registered entity in Tennessee, save for a select group which may qualify for an exemption. Franchise and Excise Tax is based on net worth as of the close of the year, but a minimum $100 payment is due annually, regardless of the LLC’s worth (or lack thereof). In order to pay this tax, the LLC must first register with the Tennessee Department of Revenue. This can also be done online, but the process is notably trickier than LLC formation.

The government websites referenced above both offer great resources and downloadable guides for anyone willing or interested in getting more information. The problem seems to be that some DIY LLC owners are unaware of additional requirements until after it is too late. Considering that forming an LLC is equivalent to creating a “person” in the eyes of the law, it only seems fitting that there should be some upkeep involved. Consulting a business attorney about LLC formation is the best route (unsurprising, coming from a business attorney), but to anyone looking to create an LLC, educating yourself on the requirements at the start can save a great deal of time, hassle, and money down the road.

To learn more about how we can assist you with your Business Legal Services Contact Us Here or Call Us 615.444.2345

I recently saw this post on Facebook and I wanted to share it. This is something as attorneys we see too often and I thought it a worthwhile reminder…

“I cannot stress enough, how important it is to have the conversation with your family about your final wishes. Have a will in place, organize your financial documents for your loved ones, write down simple wishes such as items to be given to specific members of the family or just details of your funeral wishes. As times, situations change, keep these documents updated. It’s such an extremely stressful time for everyone and even more so when some of these items are left unsaid. It’s very hard to take emotions out of the situation when there are so many emotional details to attend to after someone’s passing. This has been the hardest past two weeks of my life; last night and today just topped it off… but I’m sure there are more to come. I’ll get through them one step at a time.

Please, I beg you; friends and family – have that difficult conversation. You and your loved ones will be grateful that you did”

We are all procrastinators to some degree. Some of us may put small matters off for a few extra days, like grocery shopping or mowing the lawn, while others go by the old saying, why do today what I can put off till next year. This is fun to joke about; however, when it comes to the legal consequences of procrastination, it can be devastating.

In our law firm we see so many lives changed forever by someone’s procrastination. We hear on a daily basis, “if dad, mom, a spouse, or a business partner, etc., would not have put this off then we would not be in this horrible predicament. It is so true in almost any area of the law. People love to put off making a Last Will and Testament, signing a Power of Attorney, having important business documents drafted, or pursuing a case where someone has legally wronged them.

Legal procrastination can cause family members unbelievable amounts of additional stress and expense in a very challenging time of their lives. It is not uncommon to see people inadvertently left out of an inheritance or see families fighting after a loved one’s death that could have been avoided if it were not for the procrastination of the deceased. Also, we see people forced to get conservatorships and guardianships in the court room – something that may have been avoided by the more timely hiring of an attorney. Almost daily, we see what would be valid legal claims that are barred by the statute of limitations because the individual did not seek an attorney in time. When it comes to washing your car or getting a haircut, please feel free to procrastinate, but for important legal matters please contact an attorney today and take the appropriate legal steps to Secure Your Peace of Mind and protect your family.

HOW DO I GET PREPARED?

CONTACT AN ATTORNEY or CALL US: 615.444.2345

Keep in mind…this service can also be taken advantage of by real estate agents, lenders, and other vendors who are all valuable parts of the closing process.

We look forward to securing your peace of mind in new ways!