If you want to set up a business in Memphis, there are several logical and important steps you need to follow.
The first is to write a business plan so that you can focus on how you will succeed which should include what you want to do, what the competition is doing, how you will market and sell your products or services, the financial needs and how you will grow your business and make money.
You also need a name for your business and you should check that the name you choose has not been registered or trademarked by anyone else. At this stage you may need an attorney to help you check and register your name.
Stage three is to set up the business structure which can be a sole proprietorship, a partnership, a limited partnership, a limited liability company, or a corporation. Each one of these has a different legal and tax structure, and for most you will need to file with the Tennessee Secretary of State Office to establish the legal existence of your company. Then you will need a tax identity number which will normally be your social security number if you are a sole proprietor or single-member, but if you are a partnership or corporation you will need to obtain an different number from the IRS and you may need to file more paperwork.
Tennessee’s businesses that are subject to taxation under business tax laws, must be classified to determine the right amount of tax to pay each year. These rates vary based on the type of business and whether the business is wholesale or retail.
There are more elements to consider such as obtaining what is known as a DBA in Tennessee which is a “doing business as” name authorization, open a business bank account, apply for licenses or permits from Memphis in order to operate in Shelby County, find a location, buy equipment and arrange business insurance and then you are ready to go.
