As used in this chapter:

(1) “Business” means every trade, occupation, and profession and any other activity, including the holding or ownership of property, entered into for profit;
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Terms Used In Tennessee Code 61-1-101

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Business: means every trade, occupation, and profession and any other activity, including the holding or ownership of property, entered into for profit. See Tennessee Code 61-1-101
  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • foreign: means a partnership that:
    (A) Is formed under the laws of any jurisdiction other than the state of Tennessee. See Tennessee Code 61-1-101
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lineal descendant: Direct descendant of the same ancestors.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Partnership: means an association of two (2) or more persons to carry on as co-owners of a business or other undertaking for profit formed under §. See Tennessee Code 61-1-101
  • Partnership agreement: means the agreement, whether written, oral, or implied, among the partners concerning the partnership, including amendments to the partnership agreement. See Tennessee Code 61-1-101
  • Person: means an individual, corporation, limited liability company, business trust, estate, trust, partnership (whether general or limited), association, joint venture, government, governmental subdivision, agency, or instrumentality, custodian, nominee or any other individual or entity in its own or any representative capacity, or any other legal or commercial entity. See Tennessee Code 61-1-101
  • Property: means all property, real, personal, or mixed, tangible or intangible, or any interest therein. See Tennessee Code 61-1-101
  • Representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
  • Secretary of state: means the secretary of state of Tennessee. See Tennessee Code 61-1-101
  • State: means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or insular possession subject to the jurisdiction of the United States. See Tennessee Code 61-1-101
  • Statement: means a statement of partnership authority under §. See Tennessee Code 61-1-101
  • Statute: A law passed by a legislature.
  • Transfer: means an assignment, conveyance, lease, mortgage, deed, and encumbrance. See Tennessee Code 61-1-101
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(2) “Confirmation of good standing” means confirmation by the commissioner of revenue issued through electronic communication to the secretary of state or a certificate of tax clearance that at the time such confirmation is issued a limited liability partnership or a foreign limited liability partnership is current on all taxes and penalties to the satisfaction of the commissioner;
(3) “Debtor in bankruptcy” means a person who is the subject of:

(A) An order for relief under title 11 of the United States Code or a comparable order under a successor statute of general application; or
(B) A comparable order under federal, state, or foreign law governing insolvency;
(4) “Distribution” means a transfer of money or other property from a partnership to a partner in the partner’s capacity as a partner or to the partner’s transferee;
( ) “Family partnership” means a partnership subject to a written partnership agreement entered into, or amended with consent of all partners, on or after July 1, 2024, in which, at the relevant time, members of the same family hold, in the aggregate, at least fifty percent (50%) of the interests in the partnership’s profits or capital;
(5) “Foreign limited liability partnership,” “foreign registered limited liability partnership” or a limited liability partnership or registered limited liability partnership that is designated as “foreign” means a partnership that:

(A) Is formed under the laws of any jurisdiction other than the state of Tennessee; and
(B) Has the status of a limited liability partnership under those laws;
(6) “Limited liability partnership,” “registered limited liability partnership” or a limited liability partnership or registered limited liability partnership that is designated as “domestic” means a partnership that has filed an application for registration as a registered limited liability partnership under § 61-1-1001 and does not have a similar statement in effect in any other jurisdiction;
( ) “Members of the same family”:

(A) Means:

(i) A group of two (2) or more individuals who bear a relationship to a common relative through one (1) of the following relationships:

a A spouse or former spouse of the common relative;
b An ancestor or lineal descendant of the common relative;
c An ancestor of the spouse or former spouse of the common relative;
d A brother or sister of the common relative;
e A lineal descendant of any individual described in subdivision ( )(A)(i)(d);
f A spouse or former spouse of any individual described in subdivisions ( )(A)(i)(b)-(e); or
g A lineal descendant of any individual described in subdivision ( )(A)(i)(f); and
(ii) For the purpose of determining “members of the same family”:

a Relationship by adoption is treated the same as relationship by blood;
b An interest held by any entity that is related, within the meaning of §§ 267(b) and 707(b) of the Internal Revenue Code (26 U.S.C. §§ 267(b) and 707(b)), as amended, to an individual is deemed to be held by the individual;
c The common relative need not be a partner;
d The common relative need not be living, but, if deceased, must not be more than four (4) generations removed from the youngest generation of individuals who would, but for this subdivision ( )(A)(ii)(d), be members of the same family; and
e For purposes of this subdivision ( ), “fiduciary,” as used in § 267(b) of the Internal Revenue Code, is treated as a trust and an entity;
(B) Does not include:

(i) A partnership operating without a written partnership agreement; or
(ii) A partnership operating under a written partnership agreement executed prior to July 1, 2024, that is not subsequently amended with the consent of all partners;
(7) “Partnership” means an association of two (2) or more persons to carry on as co-owners of a business or other undertaking for profit formed under § 61-1-202, predecessor law, or comparable law of another jurisdiction;
(8) “Partnership agreement” means the agreement, whether written, oral, or implied, among the partners concerning the partnership, including amendments to the partnership agreement;
(9) “Partnership at will” means a partnership in which the partners have not agreed to remain partners until the expiration of a definite term or the completion of a particular undertaking;
(10) “Partnership interest” or “partner’s interest in the partnership” means all of a partner’s interests in the partnership, including the partner’s transferable interest and all management and other rights;
(11) “Person” means an individual, corporation, limited liability company, business trust, estate, trust, partnership (whether general or limited), association, joint venture, government, governmental subdivision, agency, or instrumentality, custodian, nominee or any other individual or entity in its own or any representative capacity, or any other legal or commercial entity;
(12) “Property” means all property, real, personal, or mixed, tangible or intangible, or any interest therein;
(13) “Secretary of state” means the secretary of state of Tennessee;
(14) “State” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or insular possession subject to the jurisdiction of the United States;
(15) “Statement” means a statement of partnership authority under § 61-1-303, a statement of denial under § 61-1-304, a statement of dissociation under § 61-1-704, a statement of dissolution under § 61-1-805, a statement of merger under § 61-1-907, or an amendment or cancellation of any of the foregoing;
(16) “Tax clearance for termination or withdrawal” means confirmation by the commissioner of revenue issued through electronic communication to the secretary of state or a certificate of tax clearance that a limited liability partnership or a foreign limited liability partnership has filed all applicable reports, including, but not limited to, a final report, and has paid all fees, penalties and taxes as required by the revenue laws of this state; and
(17) “Transfer” means an assignment, conveyance, lease, mortgage, deed, and encumbrance.
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