According to the Tennessee Chamber of Commerce, Clarksville, Tennessee, located in Montgomery County, is an area of robust economic growth and home to approximately 3,090 businesses in 2020. This makes Clarksville a perfect location for a new or existing business.
Since 1860, Batson Nolan PLC has advocated for and counseled Clarksville’s residents. Our Clarksville limited liability partnership lawyers understand the ebb and flow of doing business in Tennessee and welcome the opportunity to be part of that journey with other companies.
What Is a Limited Liability Partnership (LLP)?
Tennessee LLPs are a type of business entity that provides enhanced liability protection compared to the general and limited partnership forms of doing business. Unlike a limited partnership, which consists of one or more general and limited partners, an LLP consists of limited partners. All limited partners have the option to share equally in the management of the business and enjoy liability protection in many situations up to the amount that they financially contributed to the company.
Because of this, they are a common form of doing business in Tennessee and throughout the United States. To establish a limited liability partnership, you file an Application for Registration of Limited Liability Partnership with the Tennessee SOS.
Our Clarksville LLP lawyers have helped hundreds of individuals take that first step in forming a Tennessee LLP. Further, we have assisted many clients in converting their existing business into an LLP or an LLP into another structure.
Is an LLP the Same as a Limited Liability Company?
While people sometimes use these terms interchangeably, they are not the same business entity or form, although they share certain similarities. You create an LLC by filing Articles of Organization with the Tennessee Secretary of State (SOS) and fulfilling other requirements. LLCs and LLPs also have different management structures, asset protection, professional limitations, and tax consequences.
Our Clarksville business formation lawyers can review your situation and advise you on whether the LLC or LLP structure would be appropriate. We can also help you draft and file the legal paperwork to establish the business, regardless of the entity type you select.
Our Clarksville Business Formation Attorneys Can Help You Start a Limited Liability Partnership
Starting a limited liability partnership is an exciting endeavor, but there are many steps to complete in a particular order to set up a business properly. Your decisions in these early stages can significantly impact the company’s trajectory. Likewise, what you put in place now can change how a court determines your liability if a dispute occurs down the road.
Choose a Unique Name
The first step in starting a business is to craft the perfect name that sends the right message to your potential clients and meets Tennessee’s naming rules. We can help you navigate the sometimes complex rules about what you name your business and help you change the name later on. If you have a name picked out but are not ready to file yet, we can also help you reserve the business name.
Draft and File the Application for Registration of Limited Liability Partnership
The second step of legally forming a business is to fill out and file the Application for Registration of Limited Liability Partnership. The application provides essential information about your business, such as the following:
- The name of the company,
- The registered agent and office,
- The effective date of the Application, and
- The current number of partners of the LLP.
You may need to provide additional details about your company. Our Clarksville limited liability partnership attorneys have plenty of experience demystifying the often nuanced language of the Application for Registration of Limited Liability Partnership. We will also help you file these with the Tennessee SOS.
Get an Employer Identification Number (EIN)
After the SOS accepts your LLP paperwork, you can apply for an EIN with the Internal Revenue Service and the Tennessee Department of Revenue. You use this number to pay taxes, open a business bank account, and pay employees.
Apply for a Business License
Before legally operating your business in Clarksville, you may need to apply for a business license. You can do this by visiting the City of Clarksville website, or we can help you locate this information and submit your application.
Establish the LLP’s Internal Governance
One of the most crucial steps in starting a business is putting the proper internal governing documents in place. This may include:
- The partnership agreement,
- The business succession plan,
- The employee handbook,
- The internal operating procedure manual,
- The sweat equity agreement, and
- The buy-sell agreement.
The beginning of the business’s lifecycle is the perfect time to set up these governance documents because everything is fresh, and there are usually no obvious points of contention yet. Unfortunately, it may be too late if you wait to answer essential questions about how the LLP operates until the brink of a lawsuit.
Our Clarksville LLP attorneys understand that you have many competing obligations, and we want to make the process as painless as possible. Our goals are to understand your priorities and to help maximize your LLP’s potential while protecting your liability.
How Can LLP Attorneys Help My Existing Business?
As your business grows and develops, it is vital to have routine legal check-ups to ensure you comply with your obligations. Our Clarksville limited liability partnership attorneys provide invaluable services to existing businesses by reviewing their current documents, drafting new agreements, and providing ongoing HR advice.
Our Clarksville Limited Liability Partnership Lawyers Can Help You Protect Your Investment
All of our attorneys have a wealth of experience that can be used to address your business’s legal needs. For example, before beginning his legal career, Dan Nolan attended the University of Tennessee at Knoxville, where he obtained his B.S. in Business Administration. Throughout his 57 years in practice, Dan has led many seminars covering various legal topics at bar associations throughout Tennessee.
Batson & Nolan PLC is a full-service law firm. We represent a variety of legal matters, including: