If you're a business owner in Texas, you may be wondering how long it takes to get an LLC in Texas. The good news is that the LLC formation process is relatively fast and easy, thanks to the state's streamlined registration process.
Our legal advisors, with over 10 years of experience, have helped us research and deep dive into the process of forming an LLC in Texas and its timeline to find out how long it takes to get an LLC in Texas.
We will also go over the basics of the LLC registration process in Texas and some of the benefits of doing so.
LLC Approval Timeline in Texas
The time it takes to form an LLC in Texas is determined by various factors, including the preparation of the operating agreement or company agreement, the submission of the Certificate of Formation (COF), and the review and approval of the chosen LLC name, among others.
The limited liability company approval process begins when you file your Texas Certificate of Formation with the Texas Secretary of State.
Once the state's office approves your LLC formation process, they will send you a notice of LLC approval. This notice is typically sent via email, but it can also be sent by mail or fax. It applies to a foreign LLC, as per the business law.
How Long Does It Take for LLCs to Be Processed in Texas?
The processing period includes the time it takes the state of Texas to review and enter your LLC application into their system after submitting the Certificate of Formation.
Texas LLC processing time by mail
The Secretary of State is currently working to process legal documents within the same time frame as before, which is 7 to 10 business days. But, due to increased demand for Secretary of State services and the COVID pandemic, mail submissions are being processed within 22 to 25 working days on average after submitting the Certificate of Formation.
Texas LLC processing time online
Texas Certificate of Formation documents submitted online is processed in 4 to 5 business days.
How Long Does It Take for LLCs To Be Approved in Texas?
The whole time it takes to have your LLC authorized from start to end is referred to as the LLC approval time. It covers the review and processing by the Texas Secretary of State and any transit time to and from the state.
Once your LLC is approved, the state sends back your approved documents electronically or by mail, such as the Certificate of Formation.
Texas LLC Approval of Mail filings
The Texas LLC mail-based approval process can take up to 7 weeks without expedited processing after submitting the Certificate of Formation through mail filings. It accounts for 22 to 25 business days from when your documents are filed until they arrive at your address. The approval process includes determining whether or not your desired name is available.
If it's found that you have access rights, then the Secretary of State will approve the filing. Otherwise, the Texas Secretary of State will reject the filing and ask you to start over.
Texas LLC Approval of Online filings
The Texas LLC filing process is easy and efficient, with online approvals taking 4 days. As soon as it is approved, you can download your documents, so there's no need to wait for an additional transit time from the Texas Secretary of State.
Therefore, the best route to get Texas LLCs is to file online. This is the option with the shortest approval time.
Does Texas Expedite LLC?
Texas LLCs' online filings do not offer an expedited filing option because the approval period is already as short as 4 business days.
However, the Texas Secretary of State offers an expedited filing option for those who want their documents filed by mail, which will take 4 to 5 business days for an extra $25 due to expedited documents and expedited processing.
Why Get an LLC in Texas?
Forming an LLC in Texas offers many advantages to business owners. The state's business-friendly environment and strong economy provide an excellent foundation for businesses of all types.
The state's asset protection laws can help shield LLC members from personal liability, especially with a business bank account. Plus, the state's flexible limited liability company laws also offer a great deal of flexibility in business structure and operation.
Let's take a closer look at each of these advantages:
1. Large Economy
The Texas economy is Texas has one of the largest sizes, entrepreneurial environments, and business-friendly laws with an impressive number of creating jobs for its people that make it a major player in America's economic system.
2. Tax-friendly State
Texas is one of few states that doesn't impose an income tax as per business law. On the other hand, business taxes, such as sales tax and use tax, are very low, making them a perfect destination for business endeavors. In fact, there are more LLCs registered in Texas than in any other state in the country.
3. Personal Assets Protection
The creditors of a member of a Texas LLC are not allowed to take their personal assets or membership interest. Instead, they may get a charging order to receive any payout that the member would otherwise be entitled to.
4. Series LLCs
Texas is one of the few states that permits the formation process of series LLCs, which allow the creation of a single LLC with an infinite number of business entities under it without extra expense.
Because each series LLC is protected from the assets and liabilities of the parent LLC, series LLCs are ideal for holding company or parent-subsidiary structures.
FAQs
How Much Does It Cost to Start an LLC in Texas?
It costs $300 to start an LLC in Texas due to the Texas Secretary of State. Plus, a state-mandated 2.7% convenience fee. Should you wish to reserve your LLC name before completing the COF, there is a $40 reservation fee alongside the LLC filing fee.
Should I Hire My Own Registered Agent in Texas?
Yes, you should hire your own registered agent in Texas if you don't want to deal with piles of paperwork and ensure that everything is filed correctly. Hiring an LLC agent will not expedite the approval of your LLC formation.
How Do I Know if My Texas LLC Name Is Available?
To know if your Texas LLC name is available, you may do a free business name search on the Texas Comptroller of Public Accounts website. Similarly, the Texas Secretary of State offers a business name availability checker on their website for $1.00.
How Do I Get an EIN in Texas?
To get an EIN in Texas, visit the IRS website and apply for a federal employer identification number for your LLC online. All EIN applications must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the responsible individual or business entity.
Does a Texas LLC Expire?
YThe articles of organization of a limited liability company may allow its members to specify the term of the business entity. The expiration date of an LLC formation can be provided. Otherwise, the legal entity can continue indefinitely, regardless of its attorney-client relationship in the future.
How Long Does It Take to Get an LLC in Texas...
If you are thinking of starting to conduct business in Texas, it is crucial to understand the process of forming an LLC. The process is not as complicated as it may seem, and how long it takes typically depends on whether you have all the information you need from the start and what method of filing you select.
If you want the procedure to go more quickly, you can get expert assistance from a specialized business like ZenBusiness, which can file the articles of the organization on your behalf.
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