Are you interested in forming a limited liability corporation (LLC) for your Tennessee business?

One of the most essential steps in the process of creating an LLC in Tennessee is to conduct a business entity search. This process ensures that the name you’re considering for your business is available and not already in use in the state.

Below is a step-by-step guide to help you with the process of completing your Tennessee SOS business entity search.

Why do you need to do a business entity search?

In Tennessee, like in other states, a business entity search is essential for one critical reason: You need to make sure that the name you want for your business is unique.

Why?

Imagine if there were 12 businesses in Tennessee named “Jones Electrical LLC.” Such repetition would cause major confusion for people looking to find the specific company they need, whether it’s in Memphis, Nashville, Chattanooga or elsewhere.

It’s important that each of the businesses within the state has its own, distinct name.

Because you need a unique name, conducting the business entity search is an essential step.

A business entity is the legal structure under which you choose to operate your business. An LLC is a popular choice for many business owners in Tennessee, due to the pass-through taxation, the operational flexibility and liability protection the structure offers.

Because your business name needs to be unique to file the paperwork to form the LLC business entity, the name check is a core first step.

State naming guidelines for LLC and Corporations

Uniqueness is the name of the game when it comes to Tennessee business name guidelines.

The key rule when it comes to naming an LLC is that it “must be distinguishable” from the names of existing corporations, whether for-profit or nonprofit, and other business types.

What makes it distinguishable? In general, it’s a business name that is different by one or more letters and/or words. In addition, it can be distinguishable if the letters or words are in a different order. In addition, singular and plural variants qualify as distinguishable.

The names that your potential name needs to be different from are those that are within the state’s database.

Here are some of the things that do not make a business name distinguishable:

• Using ending words like incorporated, corporation, company, limited liability company, limited liability corporation, limited liability partnership or any abbreviations of those words, such as LLC
• Differences in capitalization
• Differences in punctuation
• The presence or absence of articles, conjunctions or prepositions used either as symbols or words. Examples include a, and, at, in, of, plus or the

Implications and roles play another key determination in whether a name is allowed.

The state excludes business names that imply the company:

• Transacts business or has the power to conduct business that requires Tennessee legal authorization (unless the relevant entity or official has granted that authority in writing)
• Is organized by, related to or sponsored by veterans, fraternal, religious, charitable, service or professional organizations (unless certified in writing by that organization)
• Is an agency or instrument of the state or federal government or a subdivision or agency of the same (unless approved in writing by the relevant government entity)
• Is formed for a purpose other than those allowed under relevant business statutes

In addition, if the business name uses the words bank, banks, credit union, mortgage or trust, the business must have written approval from the state Department of Financial Institutions.

The state’s determination of distinguishability is based exclusively on a review of names already in its online business name database. It does not check names against those in other states or databases of federal or state trademarks.

Business name search on the Tennessee Secretary of State Website

When you’re ready to get started with your business name search, here’s what to know.

Go to the Tennessee SOS websiite

First, go to the state’s online business name database.

This page is a very simple search engine. The only choice here is to enter a potential name and hit the search button. It will indicate if there are any matches.

At first, it’s helpful to keep your search terms to a minimum to identify any potential matches. You can conduct more granular, detailed searches later.

You can then click on any hits to get more details about that business (we’ll discuss those details later).

The state also suggests that you look at the business information search page, which provides more functionality.

The business information search allows for more search functionality. In addition to a name, you can use “starts with” or “contains” filters. You can also choose to only search for active businesses.

You can also search using the Secretary of State control number, if known. This number is a unique identifier that is assigned to every registered business in the state.

Explore details on found companies

If there’s a match on the search terms, it’s a good idea to look at the details. The information provided gives you an insight into the details the state collects about your business, including:

• Name
• Where Formed
• Status
• Fiscal Year Close
• Term of Duration
• Principal Office Address
• Mailing Address
• Initial Filing Date
• Whether the LLC is member managed
• Number of Members
• Assumed Name
• Registered Agent

Fees

There are no fees to use either of the online state databases. However, if you would like to download the entire business entity, you can do so.

There is a $1,000 fee to download the entire database, with $50 charges to download activity for either the prior week or month.

The file contains basic business information, such as the mailing address, any assumed names, registered agent information and details about the company’s annual report filings.

What can you do once you have a name

Once you’ve scoured the online databases and have decided on your business name, congratulations! You may be asking what to do next.

Here are some of the key steps:

• Register Your Name. It’s important to secure your legal name as quickly as possible to ensure it’s not taken by another business. There’s a simple form to complete that allows you to apply for your name. Note: Your name will still need to be approved before your name is officially yours.
• Apply for an Assumed Name. In addition to your legal name, you may want to file for an assumed name. This name, often referred to as the “doing business as” or DBA name, is used in place of the formal legal name in signage, advertising and other public-facing instances
• Trademark Your Name. Your name is unique and special, signifying what your business is. By trademarking your name, you give yourself legal protection, safeguarding against another entity using your name fraudulently
• Register Your Domain. If you’re going to conduct business online, you’ll need a website. Securing a domain that uses your name is essential. Domain registration allows you to build a website pointing to that name and create email addresses that use that identifier

Conclusion

A business name is an important step in the creation of your Tennessee LLC. By following the proper steps and guidelines, you can find the perfect name and make sure it’s exclusively yours for use within the state.

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