How Long Does it Take to Set Up an LLC: Get Your LLC in 2021

    by Luke Iovino
Updated May 5, 2021

Forming a business isn’t like ordering a package from Amazon, you cant track it and know exactly when it’s going to arrive. When dealing with government agencies there are sometimes unexpected delays and bureaucracy to deal with.

To truly understand how long it’s going to take to form an LLC, you must be familiar with the process. The amount of time the formation of an LLC takes depends primarily on the state the LLC is being issued. You can also speed up the process by purchasing the expedited/rushed filing service (for a pretty penny). In addition, some states require publication requirements that can lengthen the time of the LLC formation process.

In this article, we will go over what you need to know about the process and the time it takes to set up an LLC so you know what to expect. Let’s jump in!

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LLC Basics

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An LLC is a legal entity that is created under state law (much different than a sole proprietor).  What that means is an LLC is like a protective wall between your company and your personal assets. An LLC can have one or multiple members. There are different types of LLCs, some suitable for professional help (lawyer doctor) while others for commerce. Here is a shortlist of a few:

  • Sole Proprietorship (single member)
  • General Partnership (multiple-member)
  • Family Limited Partnership
  • Series LLC
  • Restricted LLC

There are more, these are just the main LLCs that most business owners look into. The type of LLC that you find suitable for your business will directly affect the amount of time it will take to get your LLC approved and running.

Forming Your LLC

To truly understand the amount of time it will take you to form your LLC, you first must get a grasp of what you need to do to form your LLC.

It’s important to note that there isn’t a fixed price for forming an LLC. The cost of an LLC depends on the state that you wish to establish your business.

Back to forming your LLC, first off you want to choose a clever business name. Make sure that hasn’t already been taken (double-check with search engines).

Once completed, you need to file your Articles of Organization. Articles of Organization are documents that outline the initial statements required by the state to form an LLC. The Articles of organization are sent to the secretary of state who approves or denies your LLC request.

The next step is forming an Operating Agreement. Not all states require an Operating agreement, but it is a vital document to have. An Operating Agreement is a legally binding testimony. This document is the foundational format of how the business is going to operate. An operating agreement should reflect the business and its members.

Then you’ll probably need a registered agent. A registered agent is a third party that is designated to receive service of process letters and deal with state compliance. Most states require a registered agent.

Once you get that taken care of, your onto your Employ Identification Number (EIN). An EIN is an identification number given to your LLC by the Internal Revenue Service (IRS). The IRS uses an EIN to identify LLC taxpayers. An EIN is required when openings bank accounts, credit cards, and creating payroll.

It is important to get your LLC approved before you request an EIN. If you apply and receive your EIN prior to your LLC, the EIN will be attached to your PERSONAL ID (basically you will have a Sole Proprietorship).

If you’d like to apply now, click here. Just be sure that you are LLC APPROVED beforehand!

Depending on your industry, you might need to obtain specific permits and licenses. Be sure to review the Jurisdictional Bussiness Law that pertains to the state you open your LLC.

LLC Processing Time

Blue clockAt the end of the day, an LLC formed in Texas and an LLC formed in Maryland will be approved at different times, it depends on the state you form your LLC. We analyzed information and found that it takes most states 14-21 business days. There are a few that take 4-6 weeks! For example, Arizona takes 25 days on average to process documents.

There are some states that issue approval right after they review articles of organization which can be sent by mail, in person or sometimes online. Confirmation can take 3-5 business days.

Another detail to note is the time of year. Some states are busier than normal during certain time periods, which could cause a delay. Be sure to plan accordingly, so that you avoid unnecessary waiting.

Looking to form your LLC? Have a credible formation service file for you:
Incfile ($0 + state fees) or Zenbusiness ($39 + state fees) 

Additional Requirements

Additional requirements are an important section, but again, each state is slightly different from the next.

In Some States, the acceptance of your LLC is only the first step in the formation process. In New York State, for example, you must publish your LLC filling in 2 newspapers for 6 consecutive weeks! Failing to do so can result in LLC suspension authorized by the state.

So How Long Will it Take?

As we said before, it really really depends on the state you form your LLC. Of course, there are other variables that will change the final approval date as mentioned above.

On average, the processing time, from beginning to end takes around 3-5 weeks to form an LLC.

There are options to speed up the process if you’re in a rush and willing to pay a fee.

  • Standard
    • This is the usual processing speed, of course, the standard option depends on the state you form your LLC. On average it takes 3-5 weeks.
  • Expedited
    • You can contact an online service to speed up the process. This can take 1-2 weeks to be approved. The expedited package costs on average $50.
  • Rush
    • There are rush packages online as well that can get everything done in 3-5 business days. This isn’t a cheap service, we found it ranging from $100-$150.

Running a business is challenging and there’s only so much time in the day to get things done.

If you need help forming your business we reviewed the best incorporation services. They can difficulty help you get things going.

Summing it All Up

Thumbs upForming an LLC is one of the first major steps in getting your business on its way! There are many variables that will determine how long it takes to get everything set up and running. If you haven’t started yet, now is the best time to start your LLC.

How much time did it take you to form your LLC?

If you have any questions or concerns feel free to leave a comment.

We hope our article was of help and we wish you good luck on your journey!