Download Free Buy-Sell Agreement Template for Tennessee

Plan for ownership transfer in a business

Sales Tax: 7%Notary: $5Witnesses: 2

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BUY-SELL AGREEMENT
State of Tennessee

This Buy-Sell Agreement is entered into on [DATE] between:

BUSINESS: [BUSINESS NAME]
Type: [  ] Corporation [  ] LLC [  ] Partnership
State: Tennessee (TN)

OWNERS:
Owner 1: [NAME] — Ownership: [PERCENTAGE]%
Owner 2: [NAME] — Ownership: [PERCENTAGE]%

1. TRIGGERING EVENTS:
   [  ] Death of an owner
   [  ] Disability of an owner
   [  ] Retirement
   [  ] Voluntary withdrawal
   [  ] Divorce
   [  ] Bankruptcy

2. VALUATION METHOD:
   [  ] Fixed price: $[AMOUNT] (reviewed annually)
   [  ] Formula-based: [DESCRIBE]
   [  ] Independent appraisal

3. PAYMENT TERMS:
   [  ] Lump sum within [DAYS] days
   [  ] Installments over [MONTHS] months at [RATE]% interest

4. FUNDING:
   [  ] Life insurance
   [  ] Company reserves
   [  ] Promissory note

5. RIGHT OF FIRST REFUSAL: Remaining owners have [DAYS] days to match any outside offer.

This agreement is governed by Tennessee law (TN Statutes).

OWNER 1: _____________________ DATE: _____
OWNER 2: _____________________ DATE: _____

FAQ: Buy-Sell Agreement in Tennessee

Is a Buy-Sell Agreement required in Tennessee?

Yes, in Tennessee, a Buy-Sell Agreement is required for most transactions of this type. Under Tennessee State Code, the document must include all parties' information, be signed, and witnessed by 2 individuals. Failure to use a proper Buy-Sell Agreement may result in legal complications.

Does a Buy-Sell Agreement need to be notarized in Tennessee?

Notarization requirements in Tennessee (TN) vary by transaction type. Notary fees in the state typically range from $5. While not always mandatory, notarization adds an extra layer of legal protection and is recommended for high-value transactions.

What are the tax implications of a Buy-Sell Agreement in Tennessee?

Tennessee has a base sales tax rate of 7%. Depending on the type of transaction documented in your Buy-Sell Agreement, additional local taxes may apply. Consult with a Tennessee tax professional for specific guidance on your situation.

Tennessee Buy-Sell Agreement Requirements

Review the following requirements to ensure your Buy-Sell Agreement is legally valid in Tennessee.

Notarization required
2 witnesses must sign
Vehicle identification number (VIN) required
Odometer disclosure mandatory
Buyer and seller signatures required
Purchase price must be stated
Date of sale required
Blue or black ink only
Electronic signatures accepted
County clerk filing required

Tennessee Notarization

Tennessee requires 2 witnesses and notarization may be mandatory. Fees typically range from $5.

Before You Sign

Review all information carefully. In Tennessee, a 7% sales tax may apply.

Legal Protection

Keep copies of all signed documents. Tennessee law requires all parties to receive copies of executed documents.

Tennessee Filing Deadlines

Check Tennessee deadlines for filing or recording this document with the appropriate county clerk's office.

Buy-Sell Agreement Costs in Tennessee

Estimated fees and processing times

Fee TypeCostNotes
Notary Fee$5-$15 (if required)Tennessee standard rate: $5
Filing FeeVaries by stateState registration (if applicable)
Processing Time1-3 business daysTypical turnaround in Tennessee
Sales Tax7%Tennessee base rate (local taxes may apply)
Witness Requirement2 witnessesTennessee requires multiple witnesses
Our TemplateFREEDownload instantly, no cost
Fees shown are Tennessee-specific estimates. Contact your local office for exact pricing.

Tennessee Buy-Sell Agreement Legal Guide

According to Tennessee laws, this agreement holds legal weight once properly signed and notarized, ensuring compliance with state regulations.

Under Tennessee State Code, residents of Tennessee must ensure this Buy-Sell Agreement complies with all state requirements. The current sales tax rate is 7%, and notarization costs between $5. Two witnesses are mandatory in TN.

This document offers comprehensive legal protection tailored specifically to Tennessee's unique statutory framework.

business successionownership transfertriggering eventbusiness valuationbuyout agreement
A properly executed Buy-Sell Agreement in Tennessee protects all parties involved and ensures compliance with TN state law. Below, we cover the critical steps, common pitfalls, and state-specific rules you should be aware of before signing.

Your Tennessee Filing Guide

After downloading, take your time filling in each section. TN statutes require that all information be accurate and current. Once signed by all parties, determine whether Tennessee requires you to file the document with a government office, record it with the county, or simply retain it for your records.

Enforceability in Tennessee

A Buy-Sell Agreement that meets all TN requirements is fully enforceable in Tennessee. Courts in Tennessee have consistently upheld documents that demonstrate clear intent, proper execution, and compliance with state formalities. Keep your original signed copy in a secure location.

Avoid These Common Mistakes

Tennessee attorneys frequently see these errors:
- Using an out-of-state template that doesn't comply with TN law
- Forgetting to include required witness signatures
- Leaving fields blank or using abbreviations
- Not retaining copies for personal records
- Failing to update documents when Tennessee law changes

What Tennessee Law Requires

Tennessee's statutes are clear: a valid Buy-Sell Agreement must identify all parties by full legal name, include the date of execution, and be signed in the presence of a notary public where applicable. Failure to meet these requirements under TN law can render the document unenforceable.

JRJ
Reviewed & Fact-Checked

Jennifer Rodriguez, J.D.

Estate Planning Attorney

Licensed in 5 states, 12+ years experience

Focuses on wills, trusts, and power of attorney documents

This Buy-Sell Agreement template for Tennessee has been reviewed for accuracy and legal compliance.

Last reviewed: March 2026

Where to File Your Buy-Sell Agreement in Tennessee

Visit your local County Clerk office to file or notarize your Buy-Sell Agreement.

Tennessee County Clerk

Tennessee Capital

Main Government Building, Tennessee

District County Clerk

Tennessee Metro Area

County Courthouse, TN

Document Information

Document
Buy-Sell Agreement
State
Tennessee (TN)
Category
Business
Format
PDF / Word / Print
Cost
100% Free
Sales Tax
7%
Notary Fee
$5

Tennessee Legal Requirements

Governing Statute:

State Law

  • Consult with a licensed attorney for specific requirements

Legal Disclaimer

This template is for informational purposes only and does not constitute legal advice. Laws in Tennessee may change. Consult a licensed attorney for advice specific to your situation.