How Long Does It Take To Get An LLC Approved?
Starting a new business is an exciting time for many entrepreneurs. However, the amount of paperwork and due diligence that’s required can be overwhelming.
Not only do you need to ensure all the forms are completed accurately, but you also need to get your company registered without delay.
The last thing you want is late paperwork to stand in the way of hitting the ground running with your new business.
In this article, we cover everything you need to know about the LLC formation process. This includes how long it takes to be approved, as well as the steps needed for registering your LLC.
What Is an LLC?
A limited liability company (LLC) is a hybrid legal entity that combines the characteristics of corporations with those of general partnerships or a sole proprietorship.
The business structure of LLCs protects its owners from personal responsibility for debts and obligations. One of the benefits of this is that it guarantees personal asset protection.
Compared to other corporate or business entities, LLCs have a flexible organizational structure.
This allows single individuals to form an LLC, or there can be several members who each receive a percentage of the profit.
LLCs also have two different types of management structures. These are:
Member-managed: This means that the owners of the LLC (known as members) all have a say in the decision-making and management of the business.
Manager-managed: In these LLCs, the owners choose a manager to be the main legal agent of the business and oversee the day-to-day decision making.
How Do I Form an LLC?
Now that you have a better idea of what an LLC is, the section below will outline the steps you need to take to create one.
1. Choose a business name:
When you create an LLC, you must ensure that the name complies with the requirements of the state you live in.
Across all of the states, the name must include “LLC”, “limited liability company” or “L.L.C” somewhere in its title.
It’s important to note that the name cannot contain words such as, “bank”, “insurance” or “corporation” unless you are licensed to do so.
You will also need to make sure that the name does not violate any existing business trademarks.
2. Appoint a registered agent:
This refers to a third-party business or person that sends and receives the legal paperwork on your behalf.
For example, these documents can include state filings or a summons from an attorney or law firm. Here are some benefits of appointing a registered agent:
- They will take care of the compliance requirements and administrative tasks so that you can focus on building your LLC.
- You will have peace of mind that all legal documents will be delivered privately and without delay.
- A registered agent can also help you find state-specific accounting professionals and legal advice to help you with the LLC formation.
When you sign up for a premium plan with Filenow, you’ll get free registered agent services for the first year. Click here to get started today.
3. Prepare an LLC operating agreement:
This legally binding document outlines the ownership and operating procedures for your LLC. This ensures that all LLC members know what their rights and responsibilities are.
Some of the details included in an operating agreement are:
The percentage interests of each member
Whether each member has voting rights over major business operations and decisions
How the LLC will allocate profits and losses
4. File Articles of Organization with the state:
Also known as the “Certificate of Formation,” this is the basic document you need to create the LLC. The fee for filing this document will vary by state.
All you need to include on this document for LLC formation is the company’s name, address and the name of all the members in the business.
5. Obtain a certificate of good standing:
Before your LLC can conduct business legally, you need to obtain a certificate of good standing from your state.
Investors or banks will want to see this document to prove that your LLC complies with state requirements.
6. Register for an Employer Identification Number (EIN):
The final step of creating an LLC is obtaining an EIN. This is a tax identification number for your company.
This number will be required to open bank accounts for the LLC, obtain credit cards or create payroll systems for your employees.
Filenow can obtain an EIN from the Internal Revenue Service (IRS) on your behalf in as little as 24 hours. Alternatively, you can do it yourself with our quick and easy application form.
How Long Will the Entire Process Take?
The process of creating an LLC varies by state and how fast they can process filings.
In most states, the average LLC processing time is seven to ten business days. However, other states can take up to four to six weeks.
It’s important to be aware of the other variables that could affect how long it takes for your LLC to be approved. For example:
- Applications generally take longer at the beginning and end of the year.
- State offices are open Monday to Friday from 9am to 5pm. If you file your application on Friday after 5pm, processing will only begin on the following Monday.
- If you choose an LLC name that has been taken, the process can be delayed. To avoid delays, Filenow will review your documentation and contact you if the name is taken prior to submitting your application to the state.
In many states, it’s possible to have your LLC application expedited or rush processing. The cost for this service will vary by state.
For example, in Michigan expedited processing currently costs $50.00. However, in New Hampshire this service is $150.00
Enjoy Seamless Company Creation with Filenow
Whether it’s an LLC or an S-Corporation, starting a new business has never been easier with Filenow.
Our simple and intuitive online application process takes less than 20 minutes to complete. Within 24 hours, we’ll create all the forms and file them for you with the state.
Our team of experts knows that you want to get your business up and running as quickly as possible.
This is why we’ll ensure that everything is completed accurately so that there are no delays in getting your LLC approved.
The best part of all? We do it for five times less than what most lawyers charge. Visit our website today for fast, expert company creation.