Tennessee 10 Business Entity Status Definition

Tennessee 10 Business Entity Statuses You Need to Know

1. Active

The entity is in good standing and legally authorized to conduct business in Tennessee. It has met all filing requirements and is current with any necessary fees. This status generally indicates a lower risk for lenders, as it suggests the business is compliant with state regulations and likely maintains good financial practices.

2. Inactive

This status indicates that the entity is no longer active or in good standing. The entity may have failed to meet certain state requirements, such as filing annual reports or paying fees. Lenders should exercise caution when considering loans to inactive entities, as this status may indicate financial difficulties or operational instability.

3. Inactive - Name Changed

The entity's status is inactive due to its name being changed. This status often indicates that the original entity is no longer active under its former name, possibly due to rebranding or restructuring. Lenders should verify the current legal name and status of the business, as well as investigate the reasons behind the name change to assess any potential risks.

4. Inactive - Name Cancelled

The entity's status is inactive because its name registration has been cancelled. This could occur if the entity fails to renew its assumed name or if the name was voluntarily cancelled by the entity. Lenders should be cautious, as this status may indicate a lack of attention to administrative details or potential cessation of operations.

5. Inactive - Dissolved (Administrative)

This status indicates that the entity has been administratively dissolved by the state due to failure to comply with state requirements, such as not filing annual reports or not maintaining a registered agent. This status raises significant concerns for lenders, as it suggests serious compliance issues and potential financial instability.

6. Inactive - Name Expired

This status means the entity's registered name has expired, likely because the entity did not renew the name registration within the required timeframe. While this may be an administrative oversight, lenders should investigate further to ensure the business is still operational and financially stable.

7. Inactive - Revoked (Revenue)

The entity's status has been revoked due to issues related to the Department of Revenue, such as failing to pay taxes or other financial obligations. This status is a red flag for lenders, indicating significant financial problems and potential legal issues that could affect the business's ability to repay loans.

8. Inactive - Terminated

This status indicates that the entity has been terminated and is no longer authorized to conduct business in Tennessee. Termination can be voluntary or due to failure to comply with legal obligations. Lenders should avoid extending credit to terminated entities, as they no longer have legal standing to operate in the state.

9. Inactive - Expired

The entity's status is inactive because it has not renewed its registration or other credentials necessary for legal operation within the required timeframe. This status suggests potential operational issues or neglect of administrative responsibilities, which may indicate broader financial or management problems that could impact creditworthiness.

10. Inactive - Withdrawn

This status applies to foreign entities that have voluntarily withdrawn their registration from Tennessee and are no longer authorized to conduct business in the state. Lenders should be aware that these entities may still be active in other states but have chosen to cease operations in Tennessee, which could affect their overall financial stability and ability to repay loans.