(a)Transaction of Business Outside Tennessee. By enacting chapters 201-248 of this title the general assembly recognizes the LLC as an important and constructive form of business organization. The general assembly understands that:

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Terms Used In Tennessee Code 48-214-101

  • Business: includes every trade, occupation, profession, investment activity and other lawful purpose for gain or the preservation of assets whether or not carried on for profits. See Tennessee Code 48-202-101
  • LLC: means a limited liability company, organized under chapters 201-248 of this title. See Tennessee Code 48-202-101
(1) Businesses organized under chapters 201-248 of this title will often transact business in other states;
(2) For businesses organized under chapters 201-248 of this title to function effectively and for such chapters to be a useful enactment, such chapters must be accorded the same comity and full faith and credit that states typically accord to each other’s corporate laws; and
(3) Specifically, it is essential that other states recognize both the legal existence of limited liability companies formed under chapters 201-248 of this title and the legal status of all members of these limited liability companies.
(b) The general assembly, therefore, specifically seeks that, subject to any reasonable registration requirements, other states extend to chapters 201-248 of this title the same full faith and credit under Article IV, Section 1 of the United States Constitution, and the same comity, that Tennessee extends to statutes that other states enact to provide for the establishment and operation of business organizations.
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