Establishing a business in Tennessee can be a delicate process. Even if you think you have absolutely everything prepared, the smallest screw up can delay your company from taking off. This can be detrimental to your business plans and any investor who was willing to contribute to your idea.
To avoid putting all of those months and years of planning on hold, it is imperative that you know some of the more common reasons that businesses receive filing rejections from the state. Learning from these mistakes will help increase your awareness of what to avoid for the filing process.
Oversights on the document
No matter what type of organization you plan to run, the application documents you sign in the filing will demonstrate your professionality. However, many businesses receive rejections for simple, avoidable mistakes.
These oversights include:
- Not signing it
- Not enclosing it
- Not dating it
- Not writing it legibly
- Not identifying position titles
- Not using an up-to-date form
In addition, different entities require different registration fees for the filing. Be sure to check how much your business would owe in the filing prior to filling it out. You should also make sure you complete any unique objectives for specific entities.
Lack of a distinguishable name
No matter if the business is a nonprofit or corporation, you cannot name your company after another business established in Tennessee. You can have a similar name to one company as long as it is not a complete carbon copy. Before you do so, you should check online to see if there are any businesses that already have the name you are planning.
There are extra requirements for different business entities. Corporations are required to have the word “corporation,” “incorporated” or “company” in their title. Limited liability companies must have the entity’s name in a full phrase or in abbreviations (“L.L.C” or “LLC”). Due to the complexity regarding naming laws and what businesses you can apply to, you might need to seek professional help if you have any questions.
A change or lack of physical address
You cannot begin the business filing if you do not have a physical Tennessee address. The state will reject your business if you list your mailing address as a post office box or route number.
If you were a business that was established outside of Tennessee that moved into the state, then you will need to complete additional documents to classify your business as being part of this state. It is important to review any information you had in the previous state as it might have different requirements than Tennessee.
To ensure that your business formation is successful, you need to review every documentation requirement of your application carefully. Pay close attention to see if your entity has specific additional requirements for the filing. This may require assistance to have no stone left unturned in your application.