Start a Business in Memphis, TN: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Memphis, TN, is a plus for any entrepreneur. In general, setting up any form of business in Tennessee, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Memphis, TN. With an urban population of 1072330 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Tennessee. Like most places in the US, Memphis, TN also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Memphis, TN has a proper business environment for all.
In this article, you will read about how to start a business in Memphis and why you should choose Memphis to start and run your business. We recommend you check below the important facts about Memphis, TN; these might help you.
On this page, you’ll learn about the following:
- Memphis, TN Household Income Statistics
- Memphis, TN Education & Labor force Facts
- Memphis, TN Demographics
- How to Start a Business in Memphis, TN
- Other Things to do After Starting Your Business
- Important Memphis Stats for Starting a Business
- Reasons to Start a Business in Memphis
- FAQ About Memphis, TN
Memphis, TN Household Income Statistics
|Memphis Median household income
|Memphis households with dual income earners
|Memphis households $150K+ Income
|Memphis households $100K+ Income
|Memphis households $100-150K Income
|Memphis households $75-100K+ Income
|Memphis households $50-75K+ Income
|Memphis households $35-50K+ Income
|Memphis households $25-35K+ Income
Memphis, TN Education & Labor force Facts
|Memphis residents with a bachelor’s degree (or equivalent)
|Memphis residents with at least a 4-year degree
|Memphis residents with a graduate degree
|Memphis residents with a high school diploma but no more
|Memphis residents with less than high school education
|Memphis residents with some college but no more
|Memphis residents with a Bachelor’s degree or higher (STEM fields)
|Memphis households that own (rather than rent) their residence
|Memphis residents 16 and older in the labor force
|Memphis residents unemployed
Memphis, TN Demographics
|Memphis residents aged 0-9
|Memphis residents aged 10-19
|Memphis residents aged 20-29
|Memphis residents aged 30-39
|Memphis residents aged 40-49
|Memphis residents aged 50-59
|Memphis residents aged 60-69
|Memphis residents aged 70-79
|Memphis residents aged over 80
|The average size of resident families in Memphis, TN
|Estimated population per square kilometer in Memphis, TN
|Memphis, TN urban population (estimate)
|Memphis, TN municipal population (estimate)
Now that you know what makes Memphis of Tennessee good for business, let’s get started with the exact steps on how to start a business in Memphis.
How to Start a Business in Memphis, TN
Starting a business in Memphis, TN, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Tennessee, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Memphis.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Memphis. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Tennessee LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Tennessee to do the Tennessee LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in Tennessee, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Memphis, TN by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Tennessee LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Memphis can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the Tennessee
- Must have a physical street address in the Tennessee
- Must have legal rights to conduct business in the Tennessee
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, Tennessee. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Tennessee SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Memphis, TN. Your Tennessee LLC articles of organization should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
In future, if any member wants to leave the company or you want to dissolve the business, then the Tennessee operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Memphis, TN. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Memphis, Tennessee, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Memphis Stats for Starting a Business
Before you start a business in Memphis, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Memphis has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
As we talk about the urban population density, the young population percentage in the city is approximately 16.4 (people in their 20s) and 13.8 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 34.2. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Memphis has approximately 3 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Another important factor to mention about Memphis is the home value of owned properties. The average value of owned houses is 106971. Also, the percentage of people living in their own houses is 46.2. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Memphis who still do not have health insurance. The rate of people not having health insurance is 13.6. This depicts the lifestyle and overall health demography of Memphis. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Memphis, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
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Reasons to Start a Business in Memphis
Memphis offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Memphis. Here are some of the reasons,
Stable Economic Growth
Memphis or any other city in Tennessee has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Tennessee shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Memphis, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Memphis is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Tennessee LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Tennessee or any other state. That means if you are operating any business in Memphis, then Tennessee State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Tennessee. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Memphis, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 63.1 is the percentage of labour participation. Hence, it is clear that having a business in Memphis will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Memphis, Tennessee, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Memphis.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 21.7. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Memphis (aka ) is ranked at 1 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Memphis. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Memphis is 13.8. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
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Best Time To Start Business In Memphis Tennessee
Getting a business off the ground is not always easy. Fortunately, Memphis, Tennessee has all the right resources to help you launch your business and begin making profits. The city’s location on the Mississippi River makes it an ideal starting point for a new business. It is also home to the Birthplace of Rock ‘n’ Roll, the BBQ Pork Capital of the World, and a thriving cultural scene.
Memphis is an ideal place to start a business because it is one of the most affordable cities in the country. It has low labor costs and an abundance of local resources to help you get started. You can also find funding through angel investors, venture capitalist groups, and commercial banks.
One of the most important steps to take when starting a business is to find the right people to work with. The people you choose to work with will have a huge impact on your business’ success. You also need to make sure you stay compliant with all of the legal requirements. You can hire an attorney to help you with these requirements.
Having a good business plan is also important. A well-crafted business plan can help you get started, attract funding, and set up important milestones along the way. Your plan should include an estimate of how much money you will need to get your business off the ground for the next year. Having a well-defined financial plan will also help you determine what funding sources are the best for your business.
Before you begin operating your business, you will need to set up a payroll. You will also need to register your employees with the state and with the IRS. If your business has more than five employees, you will also need professional liability insurance. A business license is also essential if you intend to operate a business in Tennessee. You can apply for a business license online.
You should also take the time to research the market for your product or service. This will help you figure out what your competition is doing, what customers are looking for, and how you can market your business to reach them. Creating an effective marketing strategy will also help you grow your business. This might include writing a press release, posting on social media, or optimizing your Google listing.
There are many more things to consider when starting a business. But in the end, the best time to start a business in Memphis is a matter of personal choice. You can choose to be a sole proprietor or start a business as a partner. But in either case, you will need to register your business with the state and with the IRS.
Lastly, you will want to invest in good accounting software. These programs can save you thousands of dollars each year. The right software will make it easy to file your taxes, stay compliant, and track your business’ performance. If you don’t have a lot of money to invest, you can fund your business by setting up a Google My Business account.
FAQ About Memphis, TN
Memphis is a great place to start a business. Before you start your business, you need to create an LLC in Memphis. If you’re wondering how long it takes to create an LLC in Memphis, TN, you’re not alone. You can create an LLC in Memphis in a few minutes.
You must have some knowledge about Memphis, TN before moving there. First, consider if moving there will meet your needs. Make sure Memphis offers everything you need for your company if you are traveling there for business. Additionally, you need to be aware of the level of life.
Getting a business plan is the first thing you should do when starting a company in Memphis, TN. You may simply go forward with starting a company if you have a business plan. Before starting a company, you must first complete that task.
It costs money to form an LLC in Memphis, TN. Each person must pay the State a minimum filing fee. There may be a tax deduction for the state filing fee in certain states. You may thus get a free LLC.
The top five requirements for starting a company in Memphis, TN, are: 2. A business name, 3. Initial investment, 4. valid business licenses, 5. A marketing strategy to advertise your company.
Memphis, TN, has a population of over one million people and is home to over a thousand small businesses. One of the most popular small businesses in Memphis, TN is a food truck business. Also, there are home-based baking and small garage selling businesses.
When you start a new LLC in Memphis, TN, you need to hire a registered agent. It can be anyone such as your relative, spouse, manager, or yourself. A registered agent is the one who accepts all your legal and official documents on your behalf.
Some residents of Memphis, TN may believe that it is difficult to start a small company here. However, the city is full with resources that may assist you in getting started. The Memphis Chamber of Commerce is among the finest since it provides a wide range of services to assist entrepreneurs.
LLCs are a great way to start your own business. Your LLC must be renewed annually, however. If you are in Memphis, TN, you want to make sure you do so before the deadline. To prevent any inconsistency, you must renew your LLC before the deadline.
Memphis, TN, is a fantastic location if you’re seeking for a spot to launch a business. For entrepreneurs, there are a ton of resources available, not to mention the tax advantages. For business owners, there are several excellent networking chances.
In Memphis, TN, if you have an LLC, you are exempt from paying income tax if your LLC does not generate any revenue. In Memphis, TN, there is no corporate income tax. Paying taxes only applies to individual income.
LLCs in Memphis, TN do not pay income tax on their business income. Each member of the LLC has to pay income tax on the basis of their personal income. The rest of the taxes are Sales Tax, Employment Tax, and Franchise Tax.
Memphis, TN offers several opportunities for business creation. You have access to a wide range of materials. Decide on the kind of company you desire as your first step. An LLC is simple to set up, so if you’re unsure, you may always start there.
Create a solid business strategy before starting a venture in Memphis, TN. When you have it, you may choose a catchy business name, appoint a registered agent, and register your company with the Tennessee Secretary of State. Get the necessary licenses and permissions after submitting.
People have been debating for years about which is the better city to live in. Memphis is renowned for its thriving economy and multicultural population. Houston is renowned for having more reasonable living expenses. When determining which is less expensive, there are several things to take into account.
There are a lot of factors that go into how much it costs to create an LLC in Memphis, TN. It can depend on the number of members, the type of entity, and annual fees. The average cost for an LLC in Memphis, TN is $300.
Small businesses that make the most money in Memphis, TN are food trucks, coffee shops, small real estate, and online businesses. If you are in Memphis and want to start a small business, then you can consider these businesses to make some good money in Memphis.
A living wage in Memphis, TN would be between $40,000 and $70,000. The city’s level of life is not as great as people believe. Therefore, you must earn at least $40,000 a year if you wish to survive in this city.
Registering your business is the first step to earning money with an LLC in Memphis, TN. Your business may be registered in person, by mail, or online. Once your LLC is established, you may start earning money by offering your goods and services for sale.
To prevent other people from using your company name, you need register your business name with Memphis, TN. With the secretary of state, you may register your company name. The reservation price must be paid, and you have a limited window of time to register your company name.
Memphis, TN, has a large LLC population. A pass-through tax is available and an LLC is simpler to organize. This is the main justification for why many new and small firms in Memphis, TN choose LLCs over other corporate forms. Furthermore, LLCs are simple to terminate if you decide against continuing.
Taking certain measures may be necessary if you own a small company in Memphis, TN. Depending on how large your team is, there may also be policies on the employee code of conduct, health and safety, vacation time, and attendance.
An LLC is a sort of company organization with elements of both a sole proprietorship and a partnership in Memphis, TN. Although there is pass-through taxes, LLCs do not have double taxation. Hence, people can save a lot of money.
Yes, you are allowed to act as your own registered agent for an LLC in Memphis, TN. You must be older than 18 and have the legal right to do business in Memphis, TN in order to become a registered agent there.
Depending on the sort of business you have, the size of your organization, and the nature of the business, there are different business insurance costs in Memphis, TN. For instance, the annual cost of general insurance for a small business with less than 10 workers might be as low as $1,000.
In Memphis, TN, startup finance is difficult to come by. Memphis is home to several fantastic entrepreneurs that are in need of funding. The good news is that financing options are many. The bad news is that financing is scarce and competition is intense.
If you have a small business in Memphis, TN, you might have to pay fewer taxes compared to the biggies in the city. For an LLC, sales tax and for some states Franchise taxes are needed to be paid. If you have employees, you might need to pay employment taxes.
To obtain an EIN number in Memphis, TN, you need to fill out the online form SS-4 for an EIN number. Once completed, you can print off the application and mail it to the IRS. Once the IRS receives your application, they will contact you with any additional questions.
The city’s service and IT industries are the reason Memphis, TN, is expanding quickly. Memphis offers a fantastic business climate and advantages for supporting new company owners. As a result, the economy of the city is expanding.
In Memphis, TN, there are several enterprises that may make you wealthy. You should be aware that nobody gets wealthy overnight. If you started a company in Memphis, TN, you must wait until it is established there.
An LLC in Memphis, TN, may deduct certain taxes. Some of these include business insurance, office supplies, mileage for business trips, automobile expenditures, home office costs, and many more. To find out more, contact your neighborhood tax office.
A registered agent in Memphis, TN is a person who is appointed by the LLC. It is mandatory to appoint a registered agent. Anyone who is above 18 years of age and has the right to conduct business in Memphis, TN can be a registered agent.
Any company that can be started for less money is the simplest to run in Memphis, TN. However, you also need to consider the pricing and the demand for the product or service. Good alternatives include food trucks, dog walkers, personal trainers, and home bakers.
When forming an LLC in Memphis, TN, there are several factors to take into account. You must first choose the kind of LLC you wish to establish. Single-member and multiple-member LLCs are the two different kinds of LLCs. The next step is to submit the required documents to the Secretary of State.
In Memphis, TN, you may quickly file for an LLC. The first step is to complete up the LLC form on the Secretary of State’s website. After that, fill out and print the online form from the Tennessee Secretary of State’s website. Lastly, turn in the paperwork together with the filing fee.
How Fast Can You Start Business in Memphis, TN
Memphis, known as the birthplace of the blues and the home of Elvis Presley, has an entrepreneurial spirit that is constantly growing. Entrepreneurs are flocking to this vibrant city, drawn by its bustling economy and numerous opportunities for business growth. The city is characterized by a supportive network of mentors, investors, and business associations who are eager to help new enterprises flourish.
One of the reasons why Memphis is an attractive destination for aspiring business owners is the ease and swiftness of setting up shop. The city boasts a well-deserved reputation for its streamlined business registration processes and the low barriers to entry. Entrepreneurs are often pleasantly surprised by the efficiency of the city’s bureaucratic apparatus. By cutting through red tape and minimizing unnecessary paperwork, Memphis enables entrepreneurs to focus on what really matters – building their businesses.
Furthermore, Memphis embraces innovation and entrepreneurship like few other cities. Local authorities have proactively implemented policies and initiatives to foster a business-friendly climate. The city has robust programs that support startup incubators and accelerator programs. These initiatives not only provide practical support, such as access to office spaces and funding opportunities, but also connect entrepreneurs with industry experts who can provide invaluable guidance and mentorship.
Another contributor to Memphis’s speedy business start-up process is the wealth of resources available to entrepreneurs. Financial institutions understand the importance of providing access to capital quickly, which greatly facilitates the start-up process. Additionally, tax incentives and grants provided by both the local and state governments enable entrepreneurs to turn their ideas into reality in an accelerated timeframe.
Certainly, every entrepreneur encounters unique challenges when embarking on their business venture. Fortunately, Memphis acknowledges this fact and has cultivated a network of service providers that contribute to minimizing roadblocks. From legal and accounting professionals to branding agencies and marketing gurus, Memphis houses a rich ecosystem of businesses dedicated to supporting new startups with their expertise and knowledge. This availability of specialized services enables entrepreneurs to navigate hurdles more efficiently, creating a pathway for accelerated business growth.
In conclusion, the speed of starting a business in Memphis, TN is a critical contributing factor to its appeal as an entrepreneur’s paradise. The city’s commitment to providing a streamlined process, a supportive network of mentors, and abundant resources enables entrepreneurs to fast-track their business dreams. Memphis recognizes that time is a precious commodity for aspiring business owners and actively contributes to making it a city where entrepreneurship flourishes. This dedication to expediency and nurturing a startup-friendly environment cements Memphis’s reputation as a go-to destination for determined innovators.
Starting a business in Memphis is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Tennessee has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Memphis, TN.