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Tennessee law

Business Laws in Tennessee.

Tennessee has adopted the Tennessee Business Corporation Act and the Tennessee Revised Limited Liability Company Act. LLCs are the dominant entity. Tennessee has adopted the UCC. Tennessee permits noncompetes subject to reasonableness review; 2016 legislation limited healthcare-physician noncompetes. Tennessee operates the Business Court Pilot Program in Davidson County (Nashville) for complex commercial cases. Tennessee offers one of the more favorable entity-formation climates in the Southeast.

Last verified: 2026-04-17

State law

Key Tennessee Statutes

Tennessee Business Corporation ActTenn. Code § 48-11-101 et seq.

Governs formation, governance, mergers, dissolutions, and shareholder rights of TN for-profit corporations.

Tennessee Revised Limited Liability Company ActTenn. Code § 48-249-101 et seq.

Governs formation, operating agreements, management, and dissolution of LLCs.

Noncompete EnforceabilityTN common law; Tenn. Code § 63-1-148 (physicians)

Noncompetes enforceable if reasonable in time, scope, and geography, and protecting legitimate business interest. Courts may blue-pencil. Physician noncompetes specifically limited by § 63-1-148: max 2 years; geographic restriction tied to physician's previous practice.

Tennessee Uniform Trade Secrets ActTenn. Code § 47-25-1701 et seq.

Provides civil remedies for misappropriation of trade secrets including injunctive relief, damages, and exemplary damages.

Business Court Pilot Program (Davidson County)Tenn. Code § 16-2-509

Nashville-based Business Court Pilot Program handles complex commercial cases (threshold $150,000+) with specialized judges.

Tennessee UCCTenn. Code Title 47, Chapters 1-9

Tennessee's adoption of the UCC.

State law

Official Sources

TN Secretary of State — Business ServicesTennessee Code

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Tennessee.

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