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Business in the US: How long does it take to register an LLC?

Julian Drago
October 5, 2023

Starting a business can be an exciting milestone, but the process to register an LLC can be unexpectedly lengthy in some states.

Unlike ordering a product online, where you can track your shipment and expect delivery on a specific date, there can be unpredictable delays when dealing with government agencies.

To learn more about LLCs, including how to form one and how long it takes, read on.

What is an LLC?

LLC stands for Limited Liability Company. Like sole proprietorships and general partnerships, LLCs report taxes on their owners' personal tax returns. This makes taxes easier to file and understand. LLCs also don't pay income taxes themselves.

An LLC is a separate legal entity created by state law. Every state and the District of Columbia have laws that allow for LLCs.

While each state has its own specific rules and requirements for forming an LLC and filing paperwork, all states allow you to file the necessary documents online in minutes or by mail over a period of days or weeks.

LLC ownership

LLCs are owned by people called members, and they are usually managed by one member or a group of members. Like shareholders in a corporation, LLC members are liable only for the amount of money they invest.

State law dictates the norms

State laws dictate how to get an LLC registered, formed and dissolved in each state.

Laws also typically specify whether an LLC must have articles of organization and an LLC operating agreement, or if default provisions in the law can be used.

There are some key differences in how to register an LLC across states. For example, some states require LLCs to have a registered agent, while others do not. Some states also require LLCs to have an operating agreement, while others do not.

In addition, the specific registration requirements vary from state to state. For example, some states require LLCs to obtain a sales tax permit, while others do not.

Here are some examples of state-specific differences in LLC formation and dissolution requirements:

  • California: California requires LLCs to have a registered agent and an operating agreement.
  • New York: New York does not require LLCs to have a registered agent, but it does require LLCs to have an operating agreement.
  • Texas: Texas does not require LLCs to have a registered agent or an operating agreement.

If you are considering forming an LLC, it is important to be aware of the specific requirements in your state. [Openbiz can assist with this procces](https://calendly.com/openbiz-call/15m?), so that you can avoid any surprises and ensure that your LLC is properly registered.

How to register an LLC

Forming an LLC typically involves several steps, including filing articles of organization with the appropriate state agency. This can be done by mail, in person, or sometimes electronically.

The articles of organization and incorporation documents typically require general information about the LLC, such as its name, business address, members' names, dates of birth, and owners' signatures.

To simplify the process of opening a US business, you can work with a specialized partner like Openbiz.

How long does it take to register an LLC?

The time it takes to register an LLC varies depending on the state. In general, it takes between 7 and 10 business days for the state to process a business filing. However, some states can approve an LLC within 3 business days.

It's important to be aware that the processing time can be longer during peak filing seasons, such as the beginning and end of the year.

Tax structure

After you file your LLC with the state, you can structure it like a corporation to get the limited liability protection of a corporation, while still enjoying the more favorable tax treatment of a partnership.

Fees

You must pay a filing fee to the state before your LLC can be approved. The filing fee varies from $100 to $1,000 depending on the state. The state will not process your LLC articles of organization until your payment is received in full.

In many cases, to register an LLC is as simple as filing a single form with the state, which is usually called the articles of organization or certificate of organization. You will also need to pay the state filing fee.

Once your LLC is registered, you can start conducting business immediately. However, there are some additional steps you need to take, such as obtaining a business license and opening a business bank account.

Remember that Openbiz can help you with every step of the process of registering an LLC.

What is an LLC?

LLC stands for Limited Liability Company. Like sole proprietorships and general partnerships, LLCs report taxes on their owners' personal tax returns. This makes taxes easier to file and understand. LLCs also don't pay income taxes themselves.

An LLC is a separate legal entity created by state law. Every state and the District of Columbia have laws that allow for LLCs.

While each state has its own specific rules and requirements for forming an LLC and filing paperwork, all states allow you to file the necessary documents online in minutes or by mail over a period of days or weeks.

LLC ownership

LLCs are owned by people called members, and they are usually managed by one member or a group of members. Like shareholders in a corporation, LLC members are liable only for the amount of money they invest.

State law dictates the norms

State laws dictate how to get an LLC registered, formed and dissolved in each state.

Laws also typically specify whether an LLC must have articles of organization and an LLC operating agreement, or if default provisions in the law can be used.

There are some key differences in how to register an LLC across states. For example, some states require LLCs to have a registered agent, while others do not. Some states also require LLCs to have an operating agreement, while others do not.

In addition, the specific registration requirements vary from state to state. For example, some states require LLCs to obtain a sales tax permit, while others do not.

Here are some examples of state-specific differences in LLC formation and dissolution requirements:

  • California: California requires LLCs to have a registered agent and an operating agreement.
  • New York: New York does not require LLCs to have a registered agent, but it does require LLCs to have an operating agreement.
  • Texas: Texas does not require LLCs to have a registered agent or an operating agreement.

If you are considering forming an LLC, it is important to be aware of the specific requirements in your state. [Openbiz can assist with this procces](https://calendly.com/openbiz-call/15m?), so that you can avoid any surprises and ensure that your LLC is properly registered.

How to register an LLC

Forming an LLC typically involves several steps, including filing articles of organization with the appropriate state agency. This can be done by mail, in person, or sometimes electronically.

The articles of organization and incorporation documents typically require general information about the LLC, such as its name, business address, members' names, dates of birth, and owners' signatures.

To simplify the process of opening a US business, you can work with a specialized partner like Openbiz.

How long does it take to register an LLC?

The time it takes to register an LLC varies depending on the state. In general, it takes between 7 and 10 business days for the state to process a business filing. However, some states can approve an LLC within 3 business days.

It's important to be aware that the processing time can be longer during peak filing seasons, such as the beginning and end of the year.

Tax structure

After you file your LLC with the state, you can structure it like a corporation to get the limited liability protection of a corporation, while still enjoying the more favorable tax treatment of a partnership.

Fees

You must pay a filing fee to the state before your LLC can be approved. The filing fee varies from $100 to $1,000 depending on the state. The state will not process your LLC articles of organization until your payment is received in full.

In many cases, to register an LLC is as simple as filing a single form with the state, which is usually called the articles of organization or certificate of organization. You will also need to pay the state filing fee.

Once your LLC is registered, you can start conducting business immediately. However, there are some additional steps you need to take, such as obtaining a business license and opening a business bank account.

Remember that Openbiz can help you with every step of the process of registering an LLC.

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