A limited liability company (LLC) can be a useful structure for your small business. If you have determined it is the best entity for your business, you may want to set it up as soon as possible. The sooner you have your business up and running, the sooner you can start selling your goods or services and earning money.
So, how long does it take to get an LLC in Texas? The timeframe to get your LLC registered varies. It can take as short as a few days and up to several months. The process may seem daunting, but it can be straightforward with the correct information and guidance. This post will discuss the various options and timeframes for getting you started.
What Is an LLC?
An LLC is a legal business structure. It is not a corporation or a partnership but can have powers of both. Many small businesses use the LLC structure because it passes profits through to the owners personally. This means the profits are not double-taxed as company profits and personal income when distributed.
What You Need to Form an LLC?
To register an LLC, you must collect information and complete documentation for the state. The most critical document you must complete is the certificate of formation. Information on the certificate includes:
- The name and address of your LLC;
- The name and address of a designated registered agent;
- A description of the type of management structure of the LLC (member- or manager-managed);
- A statement of purpose; and
- The names and addresses of those organizing the LLC.
Your LLC’s name must be a unique business name that is distinguishable from other existing or registered entities.
In addition, while not required for registration in Texas, you should create an LLC operating agreement. An operating agreement should include the purpose and structure of your LLC, membership details, decision-making process, voting rights, management duties, financial matters, and conflict resolution. An operating agreement can also outline how to avoid personal liability in the event of a lawsuit.
How Long Does It Take to Form an LLC in Texas?
The timeframes to get an LLC in Texas vary depending on your preparation and the filing method.
Preparation
Preparing your idea and the necessary documents to file for your LLC is on your own timeline. The sooner you pick a unique business name, select a registered agent, set up your management structure, and complete a certificate of formation, the sooner you can file.
Filing Your Certificate of Formation
The formation process begins when you file your certificate of formation with the Texas Secretary of State (SOS). You can submit the completed form and filing fee (currently $300) in several ways:
- SOSDirect—this is the Secretary of State’s online system, and it takes around 3-5 business days to process and approve your application;
- SOSUpload—this is another Secretary of State online processing system that has a slightly slower timeframe of between 7 and 12 business days;
- Fax, mail, in person—you can submit your certificate by fax, mail, or in-person delivery, but this is one of the slowest methods of filing and can take between 30 and 72 days; or
- Expedited service—expedited service is available for fax or mail filings by paying a $25 fee, which should reduce the time from approximately 30-72 business days to 10-14 business days.
The method you select to file will impact the time it takes to form your LLC. The fastest way to get your LLC application processed and approved is through the SOSDirect website.
Receiving Approval of Formation
The SOS reviews your application, ensures your business name is available, and approves your LLC. If the state approves your LLC, the SOS will provide you with a filing number. The SOS will also email you a copy of the file-stamped certificate of formation. Once you have a filing number, you can also track the status of your entity by the state’s Business Filing Tracker website.
Factors That Can Impact Processing Time
It is important to note that processing times may also vary depending on:
- The complexity of your business structure. If your LLC has a complex ownership arrangement or multiple subsidiaries, you may need to submit additional documentation and comply with further legal requirements.
- Number of applications and time of year. If you apply during busy seasons or when the SOS has a high number of applications, your LLC registration may take longer to process.
- Name availability. The availability of the desired LLC name can influence the formation timeline, so conducting a thorough review of other business entity names is essential before submitting your application.
There may be other factors that influence your LLC registration timeline. An experienced Texas business formation lawyer can help you understand which factors may be at play when you are planning on submitting your application.
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Let Massingill Texas Business Formation Lawyers Get Your LLC Started
If you have a great business idea and want to run your own company, let the Texas business formation attorneys at Massingill help you get started. Since 2015, our team of experienced attorneys has been helping entrepreneurs and investors bring their dreams to life by forming LLCs, partnerships, and corporations.
Our sought-after business lawyers help clients select and create business entities that protect their interests and achieve their goals. We will educate you about LLCs and other business entity types and help you complete the process quickly to start your company.
While many factors can impact the time it takes to register your LLC, Massingill will work with you to get it done as efficiently as possible. Contact Massingill today to learn how we can help you turn your business ideas into reality.
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Resources
Distinguishable Names Required, Tex. Bus. Org. Code § 5.053, link.
Texas Business Filing Tracker website, link.
Certificate of Formation Requirements, Tex. Bus. Org. Code § 3.005, link.
Joshua Massingill
Joshua Massingill is an attorney practicing in Austin, Texas. He serves on the Texas State Bar’s Law Practice Management Committee, the Leander Educational Excellence Foundation (LEEF) Board of Directors, and the Success-Werx Board of Advisors. He mentors young entrepreneurs in Leander ISD’s INCubatorEDU program and is active in his church.
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