A Tennessee general partnership provides zero liability protection. A Tennessee LLC costs $300 to form but protects all members under the Tennessee Revised LLC Act. Tax treatment is identical. For formation, see how to form a Tennessee LLC.
The cost differential in Tennessee is higher than cheap states:
But the liability protection is equally critical. One lawsuit from a partner's actions can cost every other partner their personal assets.
Absolutely, if your business has any liability exposure. The minimum $600/year is still far less than one lawsuit's cost.