How Long Does it Take Form an LLC and Get Approved?

Limited liability company (LLC) incorporation is a popular way to establish a new business. LLCs are easy to form, inexpensive, and simple to maintain.

Also, an LLC is an ideal business structure if you want to protect your personal assets, raise capital from investors, and benefit from different taxation schemes.

All sounds good, but how long does it take to form an LLC?

In this guide, we’ll go over the formation process and turnaround time, so you know what to expect.

How long does limited liability company formation take?

On average, LLC formation takes 7-10 business days in most states. Some states can even issue same-day approval if you file company formation documents online. Others may have a backlog of unprocessed LLC filings, leading to 4-6 weeks in waiting times.

For example, Florida takes two to five business days to approve your LLC registration request. Arizona authorities have a 30-day standard processing time for Articles of Organization submissions.

Several factors can speed up or delay the formation of your LLC, such as the following.

Times of the year. Some states are busier at the beginning or end of the year when there are heavy filing volumes.

Type of processing. Mailed-in filings always take longer. Online requests are handled faster. Some states also offer expedited services for online and in-person filings for an additional fee.

Document correctness. If you’ve not submitted all the required state forms or your LLC name doesn't meet the state requirements, your registration will be denied.

Below we further break down how much every step of new LLC formation takes time-wise.

LLC formation timelines in 50 states

Articles of Organization processing

To make your LLC official, you’ll need to choose a business name. Then file the Articles of Organization (also called “Certificate of Formation” in some states) with the local Secretary of State for processing and approval.

This document includes various information about your legal entity such as:

• LLC member(s) names, dates of birth, and addresses
• Name and address of registered agent
• Purpose of the business
• Signatures of the members and registered agent

Most states accept online submissions, which are processed faster. Others prefer mailed-in submissions or walk-ins at the Secretary of State’s office.

Regardless of the filing method, make sure you fill the forms out correctly and include all the requested information. Otherwise, the state may reject your LLC’s Articles of Organization. And you won’t get any refund on the state fees you’ve paid.

Once you receive an approved copy of the Articles of Organization, your LLC is legally incorporated, and you can do business in the state.

Registered agent selection

When forming an LLC, you must appoint a registered agent to handle the service of process and other legal documents.

A registered agent keeps you posted on legal and official notices, annual report filing dates, and other compliance tasks you need to complete. If your business is subpoenaed or sued, these notices will be delivered at the registered agent’s address, listed with the state.

You can list yourself, a member of the LLC, or a third-party as your registered agent provided they:

• Are at least 18 years of age
• Have a physical address (not P.O Box) in the formation state
• Can be available during business hours at the registered office

Remember: your registered office address becomes a public record. Meaning if you add your home address, you may get unsolicited visitors. At the same time, if you don’t live in the formation state or travel a lot, you won’t meet the “availability” requirement.

That’s why many new business owners hire a registered agent service who can:

• Handle official correspondence and forward you the most important documents
• Ensure your legal matters remain confidential and eliminate unwanted embarrassment
• Relay all critical documentation about your LLC to you promptly
• Be available during regular business hours so that you don’t have to

Getting a registered agent provider early on also ensures that your business maintains corporate compliance. Hence, you’re always in good standing with the state.

Operating agreement creation

An LLC operating agreement is an internal document that outlines how different administrative, financial, and governance decisions will be made in your company.

It also establishes the powers, rights, duties, obligations, and liabilities of all LLC members.

Most states don’t require operating agreements. Still, entrepreneurs should consider having one if they launch a multi-member LLC. Without this document, you may face compliance issues when doing common admin procedures, such as adding a new member to an LLC or transferring your LLCs to another state.

Also, in multi-member LLCs, operating agreements help clarify verbal agreements, which might lead to miscommunication or misunderstanding among members if not handled in writing.

But four states – California, Delaware, Missouri, and New York – require all LLCs (including single-member LLCs) to have an operating agreement. You don’t have to submit it to the State, however. Just keep a private copy.

You can create your LLC’s operating agreement using an online template. Or hire a law firm to create a custom version for your business (recommended for multi-member LLCs)

Business bank account application

Unlike sole proprietorships, LLCs can’t commingle personal and business finances.

Doing so can have negative legal consequences such as loss of good standing with the state, involuntary LLC dissolution, and loss of personal asset protection.

A business bank account helps sustain LLC protections by establishing a legal distinction between the company and its owners. A separate bank account also establishes credibility for your new business and helps build your credit score.

You can typically apply for a business bank account in minutes, provided you meet all the account opening requirements. These vary based on the bank you choose, the state you formed your business in, and the business entity type.

In most cases, you’ll need a:

• Social Security Number (SSN) or Employer Identification Number (EIN)
• ID document with photo
• Certified copy of Articles of Organization
• Fictitious (assumed name) certificate
• Business license (if applicable)
• Copy of operating agreement (if applicable)

Rates and fees also vary. Some banks don’t charge monthly fees, while others expect you to pay $10-$20/month to maintain an account with them. Other banks require a minimum opening deposit. But it can be as low as $25.

Employer identification number (EIN) application

You need to get an Employer Identification Number (EIN) if you:

• Form multi-member LLC
• Plan to hire employees as a single-member LLC

An EIN is a nine-digit number that the Internal Revenue Service (IRS) assigns to businesses for identification.

You can apply for EIN online, by mail, or by fax for free. If you’re an international applicant, you can apply over the phone.

Online applications are preferable, and you can get your EIN immediately. The mail-in filings can take up to 4 weeks to process.

Business license application

You’ve formed your LLC, opened a bank account, and obtained an EIN.

The next step is to apply for business licenses and permits to run a business that complies with state requirements.

The following states require all types of companies to get a general business license:

• Alabama (issued at county/city level)
• Alaska (issued by Secretary of State)
• California (issued at county/city level)
• Delaware (issued by Secretary of State)
• Hawaii (available through the Department of Taxation)
• Maine (issued at city level)
• Maryland (available upon registering with the Maryland Department of Assessments and Taxation; a trader’s license is also required to buy and resell goods)
• Massachusetts (issued at county/city level)
• Missouri (issued at county/city level)
• Montana (general licenses are required by some cities)
• Nevada (provided and regulated by the Secretary of State)
• Tennessee (Standard Business License issued at the county level for businesses whose annual sales exceed $10,000)
• Washington (available through the State Business Licensing Service)

No two states issue business licenses within the same time frame. Some registrations can be done online – others require a mailed-in or in-person application.

It can take as little as one day or as long as six months to get your license. Delaware business license processing takes a month on average. Tennessee officials process all new business license registrations within 10 days.

Occupational licenses

Some business activities are regulated by the state. Meaning that some professionals need to obtain a specific occupational license – a document that says you comply with the best practices and standards for that career.

Licensed occupations include accounting, nursing, construction, cosmetology, and more.

To get a professional license, you must meet state-specific requirements such as educational training, testing, and practical experience.

Once you apply for an occupational license, it may take two business days to two weeks following the licensure date to receive written confirmation of licensure (your registration certificate).

Sales license

If you plan on selling products (wholesale or retail) or services (architects, attorneys, consultants), you may need a sales license or state sales tax ID to collect sales tax on transactions. These include ecommerce sales.

You can get a sales license from the government agency that regulates businesses in your state, such as the local Department of Revenue.

In most places, you can apply for a sales license online and receive your ID number in 24-48 hours. If you mail in your application, you can get your sales license within 14 days or the same day for in-person applications.

States like Oregon, Montana, Delaware, Alaska, and New Hampshire have no state sales tax, so you don’t need to apply for a sales license there.

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Last updated: Nov 2024