An LLC may be formed in the State of Texas in less than a few hours in some cases. The time it takes to form your new small business will depend on the complexity of the business itself. For a sole proprietor, or a single member LLC, the process can be done very quickly, while larger companies with more members, more classes of shares, and significant financial investments may take as long as a couple of weeks to fully iron out the details.
Forming an LLC is a big step in any small business. In some cases it is the first step before you’ve done anything else for the business and can be a huge jumping off point. In others, you may have been working as a sole proprietor and built a large enough audience or client base that you’re wanting to incorporate and grow even more. Whatever the case may be, you will want your LLC formed quickly, efficiently, and effectively. But, how long does this process take?
For a single member LLC, a small business where there is only one member/owner of the business, it can be a relatively quick process. Your attorney can help you with the steps of forming an LLC in Texas in as little as a few days, or even the same day. Granted, you will still need to review your operating agreement and ensure that you have completed such things as an “Exact Name Search” on the Texas Secretary of state website as well as set up your LLC bank accounts and obtain an EIN. But even considering all of the steps required for setting up an LLC, you should be up and running in no time.
For larger groups of individuals, and even simple partnerships between two or three people, the process of forming an LLC may take a little more time—and for good reason. The LLC’s in these cases often represent significant investments for these individuals whether through monetary contribution, enormous downside risk, or significant sweat equity in growing the business. This is not something that should be rushed. The operating agreement should be gone over by your attorney and all of the members (and in some cases, their own attorneys) and be understood by everyone involved. Are the “silent investors” satisfied with the structure of their payouts and the obligations of the LLC to them in recognition of their investment? Are the classes of shares and the distribution of those shares among the founding members adequate? These terms and clauses will likely be negotiated over for a time before everyone signs off on a version of the operating agreement they can be happy with. Some larger LLCs need to think about forming additional LLCs when forming their business, whether through a Texas Series LLC or a subsidiary company that handles business other than that of the main, parent LLC.
Whatever the case may be, San Antonio Business Attorney Nathaniel Gilbert can help guide you and your business through the process. Nate has helped several businesses get off the ground through incorporation, as well as assisted in management strategies for existing businesses looking to expand or streamline. To learn more about LLC formation in Texas, Click Here, or to get in touch with Nate directly, Call Now.