Need Advice on Business Startup (LLC/SCorp) and Relocating to Greater Knoxville Area

[Kevin Freeman]

Greetings and thank you for taking the time to read this post!  Hopefully, you can help me make a sound decision.

Currently I reside in Michigan and will be relocating to the greater Knoxville area in summer/fall of 2025. I want to start two businesses, a notary business (LLC), and an S Corp for my primary Real Estate business (as an agent and investor). I am picking the S Corp mainly to help control taxes. The notary business will be a side hustle for more consistent cash flow while i build out my agent business.

I know I will need to establish a notary and real estate license both here in MI and in TN around the time I arrive,  I want to get started this year and do notary business here in Michigan and work as an Agent to get my feet wet and get that first year learning curve behind me.  I know I won't do many deals as an agent my first year, but it makes sense since I will be selling my own property once I move to TN.  If I pull three or four other deals, great!  Just that much more experience and a little extra cash in my opinion.

Now the main question is, should I set up the LLC and S Corp in TN and just deal with the tax filings between the two states for the first year or so or would it be more effective to set up in Michigan and just transfer the businesses to TN upon arrival? The ideal future state is to be able to do real estate and notary deals day one upon arrival to TN.

Thank you for all your help!