Starting a small business can open up many opportunities for you. It could start out as a side hustle, but it could become your main source of income.
Growing your small business might be the end game, but you have to start small at first. And more importantly, you need to come up with a business name first so you can get it registered with the state of Tennessee.
There are many small businesses in Tennessee, so choosing a name might be a little tricky since just like most states in the US, no two businesses can have the same name. Fortunately, there’s more than one method to come up with a business name and we’ll show you how.
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How to check business name availability in Tennessee
As mentioned, you can’t just pick any name for a Tennessee business, it must be unique and available. How do you find out if a certain name is available? Here’s how:
1. Go to the Tennessee Secretary of State website
Although there are many small businesses in the state of Tennessee, the good part is that they have a database for all the registered businesses on their Secretary of State website. You can use their simple business name search tool to help you find out if a specific business name already exists.
2. Use the name search tool to check for name availability
The business name search tool is not exactly for checking if a name is available. It is actually used to search for any Tennessee business and general. Instead, it is also used to check if a business with the same name you thought of already exists.
Type in the exact name on the search name search bar, and click on search to get the results. You might notice that it also has a control number search, but you can disregard that option and only use the top search bar to check if the name is available.
3. Wait for the results
After clicking on search, you will need to check off the reCAPTCHA to confirm you are a human. Then, it will bring you to the results page. If you typed in the exact words you want to name your business and there are no exact matches in the results, that means you can use the name.
However, if the name appears in the results, it means it is already taken and you are going to have to think of a new one. If it is available, the next step is to reserve the name.
4. Consider reserving a name
After running a Tennessee business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Tennessee allows business owners to reserve a name for 120 days for $20.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Tennessee, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Tennessee business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Tennessee company?
As you research available business names in Tennessee, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Tennessee business
Ready to set up your business in TN? Here’s what you do:
1. File your Articles of Organization
Visit the Tennessee Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Tennessee, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Tennessee, the cost is $20.
4. Wait for approval
Tennessee will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Tennessee small business facts
Before you start considering business name availability in Tennessee, take a look at these small business statistics from the U.S. Business Administration:
- Tennessee small businesses employed1.1millionpeople, or 42.1% of the private workforce, in 2017.
- The number of proprietors increased in 2018 by 2.8% relative to the previous year.
- The median income for self–employed individuals at their own incorporated businesses was $56,364 in 2018. For self– employed individuals at their own unincorporated firms, median income was $26,350.
- Small businesses created 40,374 net jobs in 2019. Firms employing fewer than 20 employees experienced the largest gains, adding 24,370 net jobs. The smallest gains were in firms employing 100 to 499 employees, which added 7,294 net jobs.
- In the fourth quarter of 2019, Tennessee grew at an annual rate of 2.0%, which was slower than the overall US growth rate of 2.1%. Tennessee’s 2019 overall growth rate of 2.2% was down from the 2018 rate of 3.1%.
- Private-sector employment decreased 12.3% during the 12-month period ending in April 2020. This was below the increase of 2.3% during the prior 12-month period.
- In April 2020, the unemployment rate was 14.7%, up from 3.5% in April 2019. This was equal to the April 2020 national unemployment rate of 14.7%.
- Firms with 20 to 99 employees have the largest share of small business employment. Figure 1 provides further details on firms with employees.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Tennessee:
Why is it so important to check on business name availability?
Tennessee will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Do you need an EIN to start a Tennessee business?
To register as an employer, you will need to obtain a Federal Employer Identification Number (FEIN) from the IRS and the Employer Registration from the Tennessee Department of Labor and Workforce Development.
When hiring an employee in Tennessee, do you need Employee Eligibility Verification?
Yes. Before hiring your first employee, you will need to verify a candidate can legally work. You must have them fill out the I-9 Employment Eligibility Verification Form from the USCIS. The employee must be a legal resident, which is either a permanent resident or US citizen.
Do you need to report new hires to the state?
Yes. You must report every newly hired individual to the Tennessee Department of Human Services within 20 days upon hiring or hiring the employee.
What are the most common reasons for the rejection of filing?
In most cases, registering a business in the state of Tennessee is straightforward, but there are some cases when a filing can be rejected. Those reasons include:
– The required filing fee was not enclosed
– The document has not been signed
– The document is not written legibly
– There is no date on the document
– The address was not stated
– The business name is not available
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