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How long does it take to get an LLC?

These are the times to create a joint-stock company

by Paola
29 April, 2022
in Student Finance
0
how long does it take to get an llc?

The joint -stock company is a type of Capitalist Mercantile Company born with the function of accumulating large amounts of capital, which fits the great majority of companies. The main idea of this type of company is to raise a large amount of money through investments, and the capital is divided into shares.

In the United States, corporations are commonly used, and the formation of a corporation is usually easy compared to other types of companies. The time it takes to set up depends on the state where the association is located and how the interested parties proceed.

How long does it take to form a corporation?

As we have previously mentioned, the estimated time for the formation of a corporation depends on:

  • The state where the association is located: Following the laws of each state, some will have shorter and others longer waiting time during the process.
  • How it is applied for: A corporation can be applied for through email or online form.
  • Whether the interested party includes some method to speed up the process. Again, this will depend on the state because some allow express moves, while others force interested parties to go through the entire process.

In general terms and to get a more accurate idea of how long you should expect to wait, these are the estimated times for forming a corporation.

LLC processing time

The processing time is the time to review your corporation’s application and then enter it into the system. As previously mentioned, the time frame changes depending on the state, but as a general rule, this period begins when the documents are received.

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It is essential to consider that this period does not include the time it takes for the documents to arrive or be sent for approval. It is the time it takes to review the file.

LLC Approval Time

As its name indicates, it is the waiting time to determine whether or not the corporation is approved. It includes the processing time and any other time from start to finish.

This approval time changes according to the application type: by traditional mail or online.

  • Approval time by mail: it is necessary to add the following times
  1. Transit time from the applicant to the state.
  2. Time is taken for its review (processing).
  3. Transit time from the state to the applicant with the response.

It takes one week to mail back and forth, and the processing period changes by state. If in your state, it takes two weeks, plus the two weeks travel time in the mail; then a corporation would take about four weeks.

  • Online approval time: In most states, the timeframes through digital platforms are shorter than by mail. This is because online responses are more effective than traditional mail. The answer is usually immediate.

Through this channel, the interested party can download the document as soon as approved and not wait a week for it to arrive by mail. For this reason, this is usually a more attractive alternative for the interested parties.

Online processes can take about a week before a definitive response is received. Depending on the state where the association is formed, a response may even be received the same day.

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What is the fastest way to obtain a LLC?

time 2

As previously mentioned, the fastest and most effective way to obtain an LLC is through an online application. In some cases, the online application process is so fast that it does not require the payment of an expedited or express method.

In the event that the applicant gets an immediate response, a fee ranging from $25 to $100 can be requested to cover the costs of expediting the file. It is essential to consider that ten states do not offer expedited service. This means that, in these places, there is no way to shorten the waiting time.

Steps to create an LLC?

Creating an LLC is very easy; just follow these six steps below:

Step one: Choose the name of your company

Being a business that plays under your state’s rules, it is essential to check that your name complies with the conditions established by your state.

You should also consider that you should not use an existing name and that, in the end, your name must be in LLC.

We recommend that you check the website of your state agency for information on how to comply with this step without making a mistake.

Step two: Appoint a registered agent

The U.S. Trade Act states that you must have a registered agent whose purpose is to take care of the company’s official documentation. One of the owners can appoint himself as a registered agent or hire a person to deal with this.

Step Three: Obtain your state’s articles of organization.

To establish a legal LLC, you must file a document with your state’s business registration agency.

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Step Four: Complete the form

Each state has a form with specific requirements. However, the general features include company name, address, purpose, the structure of management, registered agent contact and duration of the LLC.

This form must be signed and sealed by the LLC owner.

Step Five: File the company’s articles of incorporation.

Review the company’s filings before submitting them; remember there is a filing fee that varies depending on the state. 

After the state approves the document, the LLC will be legally formed.

Step Six: Define an operating agreement

The operating agreement sets out the legal, financial and management arrangements. It defines how profits are distributed and all relevant operational information of the company.

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Contents

  • 1 How long does it take to form a corporation?
    • 1.1 LLC processing time
    • 1.2 LLC Approval Time
  • 2 What is the fastest way to obtain a LLC?
  • 3 Steps to create an LLC?
    • 3.1 Step one: Choose the name of your company
    • 3.2 Step two: Appoint a registered agent
    • 3.3 Step Three: Obtain your state’s articles of organization.
    • 3.4 Step Four: Complete the form
    • 3.5 Step Five: File the company’s articles of incorporation.
    • 3.6 Step Six: Define an operating agreement

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