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Business attorney reviewing corporate documents and contracts

Chattanooga, Tennessee

Business & Corporate Law

Your business entity choice affects your estate plan. We look at both together so you're not paying two attorneys to solve one problem.

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Smart Business Formation is Part of Smart Asset Protection

Most business attorneys tell you to form an LLC. Most estate planning attorneys tell you to create a trust. Then you've paid two different lawyers and still don't have a coordinated plan. Here's what they're not telling you: your business structure and your estate plan are connected problems that need to be solved together.

When you form a business entity, you're creating an asset that will eventually pass through your estate. If your LLC operating agreement doesn't coordinate with your will or trust, you've got gaps. If your business has partners and something happens to you, who steps in? Can your spouse vote on business decisions? Does your business freeze while the estate goes through probate?

We handle both business formation and estate planning because they're not separate issues. Your business entity affects your personal liability protection. Your ownership structure affects what happens if you die or become disabled. Your exit strategy affects your retirement planning. Smart business owners look at the whole picture, not just the cheapest LLC filing service.

Whether you're launching a startup, buying into a partnership, or growing an established business, we'll structure it properly from the beginning. No cookie-cutter operating agreements. No generic advice. We look at your business goals, your family situation, and your long-term plans, then build a structure that protects all of it.

How We Help Business Owners

Business Formation (LLC, Corporation, Partnership)

Proper business entity selection and formation goes beyond just filing paperwork with the state. We help you choose the right structure (LLC, S-Corp, C-Corp, partnership) based on your liability concerns, tax situation, growth plans, and exit strategy. Then we file it correctly and set up the operational documents you need.

What's included:

  • Entity selection consultation (LLC vs corporation vs partnership)
  • Tennessee Secretary of State filing and registered agent service
  • Federal EIN (Employer Identification Number) application
  • Initial ownership structure and capitalization planning
  • State and local business license guidance
  • Tax election advice (S-corp vs default tax treatment)

Pricing: $800-$1,500 for basic LLC or corporation formation including state fees. Multi-member or complex structures start at $1,500.

Operating Agreements & Corporate Bylaws

An operating agreement or bylaws is not optional boilerplate. It's the document that protects your limited liability, controls decision-making, manages ownership transfers, and specifies what happens if someone dies or wants out. Tennessee provides default rules if you skip this, but they probably don't match what you actually want.

Key provisions we draft:

  • Ownership percentages and capital contributions
  • Management structure (member-managed vs manager-managed)
  • Profit and loss allocation
  • Voting rights and major decision thresholds
  • Buy-sell provisions (death, disability, voluntary exit)
  • Dispute resolution and deadlock procedures
  • Succession and estate planning coordination

Pricing: $1,500-$3,000 depending on number of members and complexity. Worth every penny when there's a dispute or transition.

Business Contracts & Agreements

Every business needs contracts: vendor agreements, client contracts, employment agreements, independent contractor agreements, partnership deals. Generic online templates don't account for Tennessee law or your specific business risks. We draft and review contracts that actually protect your interests.

Contract types we handle:

  • Client service agreements and engagement letters
  • Vendor and supplier contracts
  • Employment agreements and offer letters
  • Independent contractor agreements (1099 compliance)
  • Non-compete and non-solicitation agreements
  • Confidentiality and non-disclosure agreements (NDAs)
  • Partnership and joint venture agreements
  • Commercial lease review

Pricing: Simple contracts $500-$1,000. Complex agreements $1,500-$3,500. Contract review typically $300-$800.

Business Succession Planning

What happens to your business when you retire, become disabled, or die? Most business owners have no plan, which creates chaos for families and partners. Business succession planning coordinates your business exit strategy with your estate plan so there's a smooth transition, not a crisis.

Succession planning components:

  • Exit strategy development (sale, family transfer, partner buyout)
  • Buy-sell agreements with triggering events and valuation formulas
  • Key person insurance planning
  • Management transition and training plans
  • Estate planning integration (minimizing tax and probate issues)
  • Ownership transfer mechanisms (gifting, installment sales)

Pricing: Basic succession planning starts at $3,500. Comprehensive plans with multiple owners and complex structures $5,000-$10,000.

Asset Protection Strategies

Separating business and personal liability is the main reason to form a business entity. But forming an LLC isn't enough - you have to maintain the separation. We help structure ownership, manage asset transfers, and maintain formalities so your liability protection actually works when you need it.

Asset protection planning:

  • Entity selection for maximum liability protection
  • Multi-entity structures for high-risk businesses
  • Proper separation of business and personal assets
  • Annual compliance to avoid "piercing the corporate veil"
  • Insurance coordination (liability, E&O, key person)
  • Personal asset protection through estate planning

Pricing: Initial consultation and planning $1,000-$2,500. Ongoing compliance support $500-$1,500/year.

Ongoing Corporate Compliance

Tennessee requires an annual report ($300/year). But federal requirements, proper record-keeping, and maintaining corporate formalities are ongoing. Many businesses form properly but fail at maintenance, destroying their liability protection. We help you stay compliant without making it a full-time job.

Compliance support:

  • Annual report filing with Tennessee Secretary of State
  • Annual meeting minutes and resolutions
  • Record-keeping systems and document retention
  • Major decision documentation
  • Ownership changes and amendments
  • Business license renewals

Pricing: Annual compliance package $500-$800/year. À la carte services available.

What to Expect: Our Business Formation Process

Starting or restructuring a business involves legal, tax, and practical considerations. Here's how we guide you through it:

1

Initial Consultation (Free)

Timeline: 45-60 minutes

We discuss your business idea or current structure, understand your goals, assess liability risks, and explain entity options. Most importantly, we look at how business formation connects to your personal asset protection and estate planning. If you're better off as a sole proprietor initially, we'll say so. If online filing would work for your situation, we'll admit that too.

Come prepared with: Business description, ownership structure, revenue projections, current business debts or liabilities, and personal estate planning status.

2

Entity Selection & Planning

Timeline: 1-2 weeks

We analyze your situation and recommend the optimal entity structure. LLC vs corporation? Single-member or multi-member? S-corp tax election? We'll explain the liability protection, tax implications, administrative burden, and long-term flexibility of each option. You'll receive a written recommendation with clear reasoning and flat-fee pricing.

Factors we analyze: Liability exposure, tax situation, growth plans, exit strategy, number of owners, capital needs, and estate planning integration.

3

Formation & Filing

Timeline: 1-2 weeks

We prepare and file formation documents with the Tennessee Secretary of State, obtain your federal EIN, and register for necessary business licenses. You'll receive certified copies of all filed documents and a roadmap for initial compliance requirements.

What gets filed: Articles of Organization (LLC) or Articles of Incorporation (corporation), registered agent designation, initial member/shareholder list, and business name reservation.

4

Operating Agreement & Documentation

Timeline: 2-3 weeks

We draft your operating agreement (LLC) or bylaws and shareholder agreement (corporation). These documents are customized for your ownership structure, management preferences, and succession planning needs. Draft versions are provided for review before final execution.

Key documents: Operating agreement/bylaws, initial meeting minutes, membership/stock certificates, buy-sell provisions, and banking resolutions.

5

Launch Support & Integration

Timeline: Ongoing

After formation, we help you open business bank accounts, transfer assets properly, coordinate with your CPA on tax elections, and integrate business planning with your personal estate plan. We provide an annual compliance calendar so you know exactly what's required and when.

Post-launch support: Banking setup, asset transfers, insurance coordination, accounting firm introduction, contract templates, and ongoing legal advice as your business grows.

Typical Timeline & Investment

Complete Process: 4-6 weeks from consultation to fully operational business entity

Basic LLC Formation: $800-$1,500
Includes state filing, EIN, simple operating agreement for single-member or straightforward multi-member LLC.

Corporation Formation: $1,200-$2,500
Includes state filing, EIN, bylaws, initial shareholder agreement, and stock issuance.

Complete Business Package: $2,500-$5,000
Formation, comprehensive operating agreement, contract templates, succession planning, and estate plan integration.

All prices are flat fees quoted upfront. Tennessee state filing fees ($300-$3,000 for LLC depending on members, $100 for corporation) are additional. Payment plans available for qualifying clients.

Why Business Formation and Estate Planning Go Together

Most lawyers specialize in either business law or estate planning. That means you pay two different attorneys to solve what is fundamentally one problem: protecting your assets and providing for your family. Here's why we handle both:

Your Business is Your Largest Asset

For many business owners, their company represents 50-80% of their net worth. Yet most estate plans treat the business as an afterthought. What happens to your business if you die? Can it operate during probate? Will your spouse inherit voting control but have no idea how to run the company? We structure both the business entity and estate plan so there's a smooth transition, not a crisis.

Operating Agreements Need Estate Planning Language

Standard LLC operating agreements don't address death, disability, or probate issues adequately. We include buy-sell provisions that coordinate with your will or trust. If you die, does your ownership pass to your spouse, your kids, or get purchased by your business partners? The operating agreement and estate plan must say the same thing, or you create conflict.

Probate Can Freeze Your Business

If your business ownership goes through probate, operations can be disrupted for months. We use trust structures or transfer-on-death provisions to keep business ownership out of probate while still maintaining your control during life. This requires coordinating business formation documents with estate planning documents - not separate issues.

Asset Protection Works Both Ways

An LLC protects your personal assets from business liabilities. But you also need to protect business assets from personal creditors. If you get sued personally and lose, creditors can seize your business ownership interest. We structure ownership and estate planning to provide protection in both directions.

The bottom line: Paying one attorney to handle both business formation and estate planning costs less than hiring two separate specialists. More importantly, you get a coordinated plan instead of two plans that may contradict each other. That's the Burd Law Firm advantage: we see the whole picture and solve the whole problem.

Frequently Asked Questions

Should I form an LLC or corporation for my small business?

For most small businesses in Tennessee, an LLC is simpler and more flexible. LLCs have easier tax reporting, fewer formalities, and flexibility in profit distribution. Corporations make sense if you plan to seek venture capital, want to issue stock options, or need C-corp tax treatment. The 'asset protection' is similar for both if properly maintained. We'll look at your specific business goals, not give you a one-size-fits-all answer. LLC formation in Tennessee typically costs $300-$600 in legal fees plus state filing fee (starts at $300, varies by number of members).

How does business formation relate to estate planning?

Your business entity affects what happens when you die. LLC membership interests and corporate stock are assets that pass through your estate. If you own a business and die without proper planning, your business can be frozen while the estate goes through probate. Smart business owners coordinate their operating agreements with their estate plans. We can structure ownership to avoid probate disruption and ensure smooth business continuation. This is why we often handle both business formation and estate planning together - they're connected problems.

Do I need an operating agreement for my single-member LLC?

Yes. Even single-member LLCs should have operating agreements. Tennessee law provides default rules if you don't have one, but they may not match your wishes. An operating agreement proves the LLC is a separate entity (protecting your limited liability), specifies what happens if you die or become disabled, and makes it easier to bring in partners later. It costs $300-$500 to draft properly. Skipping it to save a few hundred dollars can cost you thousands later if there's a lawsuit or estate issue.

What's the difference between an LLC and a sole proprietorship?

A sole proprietorship is you doing business - no separate entity, no liability protection. If the business gets sued, they're suing you personally and can take your house, car, savings. An LLC creates a separate legal entity that shields your personal assets from business liabilities. LLC costs about $600-$1,000 to set up properly. Sole proprietorships cost nothing but provide zero protection. For any business with real liability risk, an LLC is worth the cost. For very low-risk side hustles, sole proprietorship might be fine initially.

How much does it cost to form an LLC in Tennessee?

Tennessee LLC filing fee starts at $300 (varies by number of members: $50 per member, minimum $300, maximum $3,000). Attorney fees typically run $300-$800 depending on complexity. A complete LLC package with operating agreement, EIN, and initial compliance setup costs $600-$1,200. Online services are cheaper but don't customize your operating agreement or explain how to maintain your LLC properly. Improperly maintained LLCs lose their liability protection - that's called 'piercing the corporate veil.' Doing it right from the start is worth the extra few hundred dollars.

Can I change from sole proprietorship to LLC later?

Yes, you can form an LLC anytime. You'll file formation documents with the state, get a new EIN, transfer contracts and assets to the LLC, and update all your business paperwork. It's not complicated but requires attention to detail. The sooner you do it, the better - you're personally liable for everything that happens before LLC formation. If you're operating as a sole proprietor and see business growth or liability risk, don't wait. The conversion process takes 2-4 weeks and costs similar to initial LLC formation.

What ongoing requirements does a Tennessee LLC have?

Tennessee requires an annual report filed with the Secretary of State ($300/year). That's it for state requirements. Federal requirements depend on your tax election. You should maintain operating records, hold annual member meetings (even if it's just you), keep business and personal finances separate, and maintain business insurance. Failing to maintain these formalities can destroy your liability protection. Many LLCs fail at this and lose their protection when they need it most. We can help set up simple systems to stay compliant.

Should I get a trademark for my business name?

It depends on your business scope and brand value. Tennessee LLC registration gives you name protection in Tennessee but not nationally. Federal trademark registration costs $250-$350 per class plus attorney fees (typically $500-$1,500). It's worth it if you're building a brand, selling products online nationally, or have a unique business name you want to protect. For local service businesses, state registration is often sufficient. We'll assess your actual risk and need, not automatically upsell you on trademark registration.

Ready to Structure Your Business the Right Way?

Get business formation advice that connects to your estate plan. One attorney, one coordinated strategy, complete asset protection.

Call us directly:

(423) 777-6116

Or schedule your free consultation online:

Schedule Free Consultation

Free 45-minute consultation. No obligation. We'll assess your business structure needs and explain how it connects to your personal estate planning.

Serving Chattanooga Business Owners and Entrepreneurs

The Burd Law Firm provides business formation and corporate law services throughout the Chattanooga metropolitan area and surrounding Tennessee counties. We help entrepreneurs, small business owners, and established companies in Hamilton County, Bradley County, Marion County, Sequatchie County, and beyond.

Office Location:
412 Georgia Ave Suite 102
Chattanooga, TN 37403

Office Hours:
Monday - Friday: 9:00 AM - 5:00 PM
Evening and weekend appointments available by request for business consultations

Licensed to practice in Tennessee, Alabama, and Georgia. We handle business formation throughout Tennessee and can assist with multi-state business planning and interstate commerce issues.