How Long Does it Take to Get an LLC?

How Long Does it Take to Get an LLC?

An LLC (the short for Limited Liability Company) is a separate legal organization formed under state law to let individuals do business in the state.

A limited liability company (LLC) may have one or two shareholders (owners). People, companies, other LLCs, and international entities will also be members. Banks and insurance firms, on the other hand, cannot be LLC participants.

For your LLC, you have the option of choosing one of two organizational structures:

  • Member-managed LLC. All LLC members are directly involved in decision-making;
  • Manager-managed LLC. When the limited liability company’s actions are taken by an appointed manager;

Establishing an LLC is one of the most basic and commonly used business arrangements in the United States. This is because forming an LLC helps you to distance yourself from the business and shield your funds from using it to pay off business debts.

Another explanation why business owners want to join an LLC is the tax benefits it brings. You have the choice of taxing the LLC as a Sole Proprietorship, Partnership, Corporation, or S-Corporation.

Forming an LLC is a smart option when you’re in a retail or service-based company like cleaning, landscaping, cosmetics, freelance, consultancy, or selling products online.

What to expect when registering an LLC?

Download LLC formation papers, also known as articles of association, from the secretary of state’s website. Filling out the articles of organization for your LLC is very simple; as long as you have all of the relevant documents, you can complete them in around 15 minutes. The name of a “licensed agent” or authorized body legally eligible to submit and accept legal papers, the names of the member-owners, and the name and signature of the organizer – the individual filing the paper – are all required. Your articles of incorporation should be mailed, faxed, or sent in person to the secretary of state’s office.

Understanding the LLC processing times

The length of time it takes for your LLC formation application to be processed differs by jurisdiction. When you’ve sent the articles of incorporation to the secretary of state, the processing period will vary from one business day to many months. Most states do not guarantee a production period, but they do publish a processing timeline to help you predict the time it would take to complete your application. These details can be found on the secretary of state’s website.

For example, Arizona processes new LLC filings submitted 6 weeks ago by mail and 4 weeks ago in person as of the date of release, while California processes new LLC filings submitted 6 weeks ago by mail and 4 weeks ago in person.

LLC processing time in different states

At the end of the day, an LLC established in Texas would be accepted at a different period than an LLC formed in Maryland; it all depends on which state you shape the LLC in. We looked at the data and discovered that most states require 14-21 business days. There are a couple that will take 4-6 weeks to complete! Arizona, for example, requires an average of 25 days to submit documents.

Any states grant consent immediately after reviewing Articles of Organization, which may be sent by mail, in person, or online. It may take 3-5 corporate days to receive confirmation.

Another factor to remember is the season. At some times of the year, certain states are busier than normal, which may create a pause. Be sure you prepare ahead of time to prevent any needless delays.

Approval of your LLC is just the first phase in the formation process in certain nations. For example, in New York State, you must publish your LLC filing in two newspapers for six weeks in a row. Failure to do so may result in the state suspending your LLC.

The LLC formation requirements

State legislation governs the formation of LLCs. The filing of a paper with a state body, such as the secretary of state in California, the Department of State in Florida, or the Corporation Commission in Arizona, is the fundamental formation prerequisite of both states. These organizations usually have a pre-printed form that only asks for the details needed to form an LLC as provided by state law.

The requisite form will usually be copied from the agency’s website and completed and reported electronically in most states. The day the government accepts your paperwork — which is usually not the same day you submitted it with the agency — the LLC is legally established and comes into being.

The processing of LLC documents in the agency

The paperwork-processing period of your state department is the main factor that defines how long it takes for your LLC to be accepted after it has been filed. This differs greatly by state and, in certain ways, is determined by how much you are willing to spend for faster service. According to the Arizona Corporation Commission, the usual processing period for a new LLC application is 22 to 27 business days, with a filing fee of $150 as of March 2013. For a higher filing fee of $185, the commission provides an expedited service alternative that cuts the processing period to 7 to 12 business days.

Some states, including Delaware, have more expedited delivery solutions that are both quicker and more costly. The standard LLC filing fee in Delaware is $90 as of March 2013, with next-day processing available for an extra $50 and same-day processing available for an additional $100. If you need the paper read quicker, the Delaware Department of State charges an extra $500 for two-hour processing and $1,000 for one-hour processing.

Additional requirements to consider

The approval of your LLC filing by the state is just the first step in the formation process in a few states. To finish the formation, you must print a notice in an eligible newspaper informing the public of your newly established LLC. In Arizona, for example, you must post a notification within 60 days of the Corporation Commission’s approval of your LLC filing.

The notification must provide the details in your LLC filing and be released in a general circulation newspaper in the county. In New York State, the LLC filing must be published in two newspapers for six weeks in a row. Failure to comply with the publishing provision may result in the state withdrawing your newly created LLC charter.

Depending on the form of business your LLC conducts, you will need to take extra steps to enable your LLC to legally conduct business. Your LLC, for example, is a distinct legal body and, in most cases, requires its federal taxpayer identification number from the IRS. A permit to obtain sales tax is usually required by the state taxing authority for any business selling goods and services.

Any business functioning in a county or municipality’s jurisdiction is often required to acquire a business license. You must acquire the requisite government appropriations to guarantee that your newly created LLC stays eligible to conduct business.

The processing period for forming an LLC is usually 3-5 weeks from start to finish. If you’re in a hurry and ready to accept a fee, there are several legal ways to expedite the process:

  • Standard. This is the standard processing speed; however, the standard choice is dependent on the state in which the LLC is created. It usually takes 3-5 weeks;
  • Expedited. To expedite the process, you should contact an online service. Approval will take up to two weeks. The estimated cost of an expedited package is $50;
  • Rush. There are also rush bundles available online that will get it completed with as few as 3-5 business days. This is not an inexpensive service; it may cost between $100 and $150;

Running a business is complicated because there is only too much time in the day to do anything.

What is an LLC effective date?

The effective date of your LLC is the day it is created. Consider it the “birthdate” of your LLC. You won’t be able to choose another date for your LLC.

However, in most jurisdictions, you will shape your LLC at any time in the future (no longer than 90 days). Using a “delayed impact date” is the most popular word for this.

If you request a deferred effective date for your LLC, it will become operational on that date.

If you don’t request a deferred effective date from the department, your LLC will start operating on the date it is licensed.

A deferred effective deadline is also known as a “future effective date”, “delayed file date”, or “anticipated file date” varies by the state where you file. They’re all pointing to the same thing.

The effective date of your LLC is specified if you want a separate effective date in your LLC filing.

If you don’t include an effective date in your LLC application, your business will start running from the date the state accepts it. Take a peek at the date on the “acceptance stamp”. That is the start date for your LLC.


How long does it take to get an LLC application approved?

The state needs time to process your LLC formation form and issue you a business license. Data processing usually takes 3-4 weeks (unless the global reasons like COVID-19).

In certain states, the process of creating an LLC is reasonably straightforward. After obtaining the Articles of Organization, they will authorize your LLC right away. Which will cut the processing period in half, to as little as three business days in certain cases.

Other American states, such as Arizona, may require 4-6 weeks to process the paperwork.

However, as previously mentioned, the average data processing period is 3-4 weeks.

When is the best time to apply for LLC formation?

Due to a large number of state filings at some periods of the year, creating an LLC will take longer than anticipated.

The beginning and end of the year are often the busiest months for state filings. If you submit the paperwork at these periods of the year, it will take longer for your application to be accepted.

When should you pay the state filing fee for an LLC?

Articles of Organization (also known as a Certificate of Formation, a Certificate of Organization, or Articles of Formation in certain American states) must be filed with a public body in order to form an LLC (typically the Secretary of State). The expense of preparing the Articles of Formation with a limited liability company varies from $40 to $500.

Can your LLC expire?

When the representatives of an LLC voluntarily decide to end the LLC’s life in compliance with the legal provisions of their jurisdiction, which may vary considerably, the LLC may expire. In California, for example, a limited liability company (LLC) dies until all of the shareholders agree to submit a certificate of termination.

Final thoughts

The first phase in legitimately running a business is to register it, which helps you to take other crucial moves including filing for a business loan. Implementing as a limited liability company provides specific advantages to the business, including limited liability insurance for the shareholders. Although filling out and sending your formation paperwork requires just a few minutes, the precise period it takes to obtain a certificate of formation is decided by the state in which you apply.