Protect Legal Tennessee Startup For Sole Proprietorship Forms For Free

Tennessee is a state that does not impose any income tax on wages, meaning it has a 0% tax rate that is applied to all business income for sole proprietors.

You don't have to register your Sole Proprietorship with the Tennessee Secretary of State. It simply exists once you decide to start a business and engage in business activities. However, you may need municipal business licenses and may be able to file a DBA for your Sole Proprietorship at the county clerk's office.

Sole proprietors and general partners don't need to file formation paperwork since sole proprietorships and general partnerships are not separate business entities from their owners. LLCs and corporations, on the other hand, are legally required to file paperwork with the Tennessee Secretary of State.

What tax forms to use as a sole proprietorship? The main form is Schedule C, on IRS Form 1040. You can find Form 1040 instructions here and the instructions for Schedule C here.

Conclusion. While the sole proprietor is such a simple business classification that Tennessee doesn't even require a business registration process or any type of fees, depending on how you use your sole proprietorship and what industry you operate in, you still might have some important steps that need to be taken.

There are also no fees involved with forming or maintaining this business type. If you want to operate a Tennessee sole proprietorship, all you need to do is start working. However, just because it's so easy to get started doesn't mean there aren't some additional steps you should take along the way.