Usually, the first question clients ask is “how long will it take to get my LLC formed?” The timeline for filing and forming an LLC in Texas can actually vary greatly depending on the complexity of the structure and the number of initial members or managers. But in general, the process has a fairly straightforward timeline, so let’s give a rough outline here:
- Day 1: Meeting with your attorney, Name Search
- Day 2: Reviewing your Operating Agreement and Filing with the Secretary of State
- Day 4: Finalizing Operating Agreement and Other Forms
- Day 10 or 12: Receive confirmation from Secretary of State; File for EIN
Day 1: Meeting with your attorney, Name Search
Your initial meeting with your attorney will give them a brief overview of your business structure and what you are wanting to accomplish. You’ll also go through some entity selection such as whether a Professional Limited Liability Company (PLLC) or a Registered Series LLC (RS, LLC) may be the correct path for your business. Your attorney will get the names of your other members, and you’ll discuss the ins and outs of your operating agreement, such as whether the LLC will be managed by the members or a manager, the registered agent information, and some other standard information. Lastly, your attorney will perform a “Name Search” that will determine whether the name of your business, or something very similar, is already in use.
Day 2: Reviewing your Operating Agreement and Filing with the Secretary of State
LLCs, PLLCs, and Series LLCs can be used for a variety of business functions in Texas. Consulting with your attorney about the plan for your business will help them determine the best entity choice for you and your future.
After your attorney has drafted your Operating Agreement and performed the Name Search, you will review the entire Operating Agreement and make sure the information provided is correct, and a reflection of what you want the business structure to be. Once the Name Search has been cleared, your attorney can also file your Article of Organization with the Texas Secretary of State. Using the information you provided in the initial meeting, your attorney will file the founding documents of your business and provide you with the receipt for the filing.
Day 4: Finalizing Operating Agreement and Other Forms
At this point, you can go back over the Operating Agreement and review any final changes to membership percentages, tax, or other information that you’ve decided to change based on conversations with your attorney. Once you are happy with the state of the Operating Agreement, you and the other members of your LLC will sign and execute the Agreement, and keep it in your business’s files. Additionally, your attorney will have other documents related to your LLC available to you such as: A memorandum or explanation of limiting your liability and LLC management and Draft resolutions and minutes to use in the conduct of your business,.
Day 10 or 12: Receive confirmation from Secretary of State; File for EIN
Unfortunately, the longest part of the process is something that we do not have any control over. Once your filing is submitted to the Texas Secretary of State, it can take a number of days, sometimes as long as 2 weeks to receive a filing confirmation and Certificate of Good Standing. Rest assured, once your attorney receives confirmation of the filing, they will forward the documentation to you, as well as begin the next step: Filing for your Employer Identification Number (EIN). EINs help you, as a business, open accounts with a bank and file taxes on your Schedule C every year, and are a necessary step in the founding of your small business.
The timeline for founding of an LLC in Texas can vary and this is not a hard and fast layout. Your attorney will give you an accurate layout of the plan when you consult with him regarding your new LLC, as well as prepare you for what the process will entail. Regardless, the founding of your new corporation is not something that should be taken lightly, as it is the foundation on which you will build your business for years to come: don’t get surprised by faults in your business structure when you are trying to make a big move in 5 years. If you have questions about the process of forming an LLC in Texas, San Antonio LLC Formation Attorney Nathaniel Gilbert can help get you the answers you need. For more information on LLC Formation in Texas, Click Here. To get in touch with Nate directly, Click Here.
