How Fast Can I Get an LLC?

By Jeff Franco J.D./M.A./M.B.A.

The speed at which you can establish a limited liability company depends on how quickly you complete the formation requirements of your jurisdiction. Most states and the District of Columbia adopt the legal principles of the Revised Uniform Limited Liability Company Act. This creates relative uniformity in LLC creation requirements. However, to ensure compliance and avoid delays, you should contact the secretary of state or its equivalent in your jurisdiction.

The speed at which you can establish a limited liability company depends on how quickly you complete the formation requirements of your jurisdiction. Most states and the District of Columbia adopt the legal principles of the Revised Uniform Limited Liability Company Act. This creates relative uniformity in LLC creation requirements. However, to ensure compliance and avoid delays, you should contact the secretary of state or its equivalent in your jurisdiction.

Formation Requirements

Most jurisdictions throughout the country only require the submission of the articles of organization to create an LLC. Drafting the articles requires the business name you choose for the LLC, the address of its principal office and the contact information for an agent you authorize to accept legal service of process on behalf of the business. Once the secretary of state reviews and files the articles, the formation process is complete. For example, the state of New York provides business owners with a two-page standard form where you fill in the pertinent information and mail it with a $200 filing fee (as of 2010) to the secretary of state. Most jurisdictions require that at least one member of the LLC exist before the articles can be filed. Although you can deliver the articles prior to a member joining the business, the document becomes void if you do not provide the state with notification of membership within a specified period of time, usually 90 days.

Ready to start your LLC? Start an LLC Online Now

Membership Interests

Most jurisdictions allow existing LLC members to convey membership interests as they see fit. There is no requirement that you provide the LLC with a money or property contribution as a prerequisite to obtaining an interest unless the operating agreement requires it. In the event an agreement is silent or does not exist, state laws generally require the unanimous consent of all current members to admit a new member. The time it takes to acquire a membership interest varies depending on the restrictions imposed by the LLC. Completing the acquisition may take longer where unanimous member consent is a prerequisite.

Management Authority

State laws provide all owners who obtain a membership interest in the LLC a right to actively participate in LLC business and a legal claim on a portion of the LLCs assets and earnings. However, if you purchase a preexisting member’s interest in the LLC, you only receive the financial interest that member has, and not the rights to participate in the business. The purchase of a financial interest in the LLC can be done in as little as one day.

Tax Implications

At the moment you complete the LLC formation process or obtain a membership interest, you must comply with the federal tax regulations that govern LLCs. Federal tax law designates a single-member LLC as a sole proprietorship, and all other LLCs as a partnership solely for tax purposes. Both types of taxation require the member to report and pay tax on their proportionate share of LLC earnings on a personal tax return. However, the LLC may elect corporate tax treatment which shifts tax reporting and payment requirements to the LLC itself.

Ready to start your LLC? Start an LLC Online Now
The Law & LLCs

References

Related articles

Information About LLCs

The limited liability company entity is a creation of state law. Although the laws of each jurisdiction are similar, you must adhere to the laws of the state that governs your LLC. The LLC is also subject to the laws of any state it conducts business in; however, those laws only govern the business activities and not the actual LLC entity.

Can One Person Form an LLC?

The authority to create a limited liability company lies with the government of each state and the District of Columbia. Most of these jurisdictions adopt the principles of the Revised Uniform Limited Liability Company Act, which allows for the creation of an LLC with only a single member. Creating and operating a business as an LLC requires you to adhere to the laws of your particular jurisdiction.

Where Can an LLC Be Registered?

All 50 states and the District of Columbia allow business owners to register a limited liability company within its jurisdiction. No laws exist that require you to create the LLC in a specific jurisdiction, such as where you reside or the state you anticipate a majority of business operations to occur. However, when you determine where to form the LLC geographically, the LLC is subject to that jurisdiction’s laws for its perpetual existence.

LLCs, Corporations, Patents, Attorney Help

Related articles

The Costs and How to Become an LLC

All 50 states and the District of Columbia have the authority to create limited liability companies within their ...

Where to File a Limited Liability Company

Every state and the District of Columbia allow you to create a limited liability company within its jurisdiction. The ...

LLC Business Partnerships

Entrepreneurs who invest in joint ventures may choose to create a limited liability company for the business in any of ...

The State Requirements for an LLC

Each of the 50 states and the District of Columbia govern all aspects of limited liability company business structures. ...

Browse by category
Ready to Begin? GET STARTED