How long does it take to get an LLC?

Many entrepreneurs understand what an LLC is, but not all of them can answer the question, “How long does it take to make an LLC?” The answer will depend on many factors, including the state where the LLC is being formed, the filing method, the time of year, and whether the organizer chooses to pay extra to have the filing expedited. This article walks through what small business owners can expect when it comes to LLC processing times.

When business owners are calculating their startup costs, they’ll also want to consider the fees for filing their legal paperwork. This is especially true if someone plans to pay for expedited processing, which greatly impacts how quickly a person can get an LLC in each state.

The following sections explore each state’s standard and expedited processing times.

Standard and Expedited LLC Processing Times

A key factor in answering, “How long does it take to open an LLC?” is the state agency’s processing time after someone files the Articles of Organization (or Certificate of Formation or Certificate of Organization in some states). Plus, it hinges on whether a filer chooses to have the state process their legal paperwork in standard or expedited processing.

Most states give filers a variety of options when it comes to submitting the Articles of Organization. These could include filing online, filing by postal mail, filing by fax, and filing in person. In most states, filing online is the fastest method, and sometimes the processing is immediate (or at least same-day). Filing by postal mail is usually the slowest method and can take weeks, not even counting the time in transit.

To give entrepreneurs an idea of how long it takes to register an LLC, ZenBusiness has compiled a list of each state and the estimated standard and rush processing times below. The standard processing time is the time an entrepreneur could expect to wait for their processing to be completed under normal circumstances. The rush processing time reflects an estimate of how fast the LLC paperwork could be processed by using ZenBusiness’s rush filing service.

Again, these are only estimates and could be influenced by the time of year and other factors. Filings done at busier times for the state offices could take longer.

LLC Processing Time by State

Each state assesses a different filing fee to create an LLC using the standard processing time. Entrepreneurs can check their state’s fee on ZenBusiness’s state filing fees page. ZenBusiness customers have the option of prioritizing their filing for an additional fee. Here are the standard and rush filing fees for popular states for forming an LLC with ZenBusiness (note that these don’t include the state filing fees):

In addition to the options above, some states will let filers expedite their LLC processing by paying an additional fee. These fees and speeds vary widely by state. Some states even offer multiple options to speed up the LLC’s processing. For example, New York will let an entrepreneur process their filing within 24 hours for an additional $25, on the same day (provided they request the filing before noon) for $75, and within two hours for $150.

Entrepreneurs should check with their state’s Secretary of State office (or whichever office handles business formations) to see what their options are for a faster LLC formation.

How to Create an LLC

Submitting state paperwork is just one small part of the process of creating an LLC. Actually setting one up has several different steps, all of which can contribute to how long it takes to create one. This section walks through the basics of that process.

Choose a name

Every LLC needs a name. Finding a name for a new LLC can be fun, and it lets an entrepreneur stretch their creative muscles. Generally, business owners will want to create a name that’s memorable and represents the products or services they’re selling.

More importantly, business owners need to follow all of their state’s rules for naming an LLC. One rule common to every state is that a business can’t select a name that’s already in use by another business in that state.

Pick a registered agent

The next step in starting an LLC is picking a registered agent. A registered agent is a person a business owner chooses to accept legal and official paperwork on behalf of the business. They need to be available at a designated registered office address during business hours.

An entrepreneur can serve as their own registered agent for free; however, doing so tethers them to their listed business address all week long. Plus, if the company is served with a lawsuit in front of customers, it can be embarrassing and harmful to the business’s reputation. Using a professional registered agent service like ZenBusiness can help entrepreneurs meet the registered agent requirement while preventing embarrassing scenarios.

File the LLC formation documents

After picking the registered agent, the next step is to file the formation documents with the appropriate state government agency. For many states, this is the Secretary of State; however, it may be called something different in some states.

The formation documents the business owner needs to file are the Articles of Organization, which provide critical information about the business to the state (check out the Articles of Organization definition guide for more information). When an organizer files this document, they pay the associated filing fee and any extra cost for the desired processing time. Once the state processes and accepts the filing, the business is officially registered.

Write the operating agreement

Now that the business officially exists, it needs an operating agreement. LLC owners aren’t required to file this document with the state, but it’s advantageous to have it, especially if the LLC has multiple members. This agreement details how the business will operate, covering matters such as:

• How new members or managers are admitted to the business
• Whether the managers or members manage the affairs of the business
• Who owns an interest in the business
• How profits are divided
• Who votes on essential matters
• What happens when someone wants to leave the business

It’s best to have this document drafted early in the process instead of waiting until something happens to consider these matters. A new LLC business will only get more complex over time, so having a foundation in place can do wonders. That said, it’s prudent for LLC members to periodically update their operating agreement as the business grows and changes.

Register with the taxing agencies

Now it’s time for the business to register with state and federal taxing agencies. For example, the LLC likely needs an EIN from the Internal Revenue Service. An EIN is like a business’s Social Security number and is used to do important things like open a bank account and hire employees. LLC owners can get an EIN by applying for one online with the IRS, or ZenBusiness can help with their EIN Service.

Once the LLC has a federal EIN, it may need to apply for a similar number for state tax purposes. In some states, an LLC can apply for one by registering with the state tax agency for businesses.

Should an entrepreneur hire an LLC service?

Soon-to-be LLC owners can complete all the paperwork themselves, but wouldn’t it be great to have help? After all, most business owners have lots of other responsibilities to take care of when starting a business. An LLC service can ease the burden and streamline the process. And, ZenBusiness’s business formation experts can help entrepreneurs avoid costly and time-consuming errors. They also provide helpful guides, such as What Does LLC Mean & What Does It Stand For?

Instead of sifting through mounds of paperwork and legal requirements, an entrepreneur can fill out a form, pay the associated fees, and be on their way to owning their own business. ZenBusiness has a large selection of products and services for small businesses and startups.