Let’s consider the steps involved in starting a new business – which will ultimately determine how long it will take. Resources like TRUiC will show you the quickest way. Yet there is no fixed answer as these aspects are clearly variables:
There are many steps in the process of opening a corporation. There is a lot of planning and work to be done before being ready to submit for a corporation. This isn’t always something that comes quickly and it takes a lot of thought before moving forward. The planning alone could take weeks or months before a business owner is ready to move to the next step. The owner would likely take at least a few days if not weeks with each phase of planning. Choosing a name can be a difficult task and is just the first step. Another large decision would be the type of business they are opening. In this case, we are talking about corporations which have specific rules. The business owner would need to be well versed in these things to make the process smoother which could take time to do research. This part of the process would be up to the business owner and how ready they are with their ideas. If this is a first time business owner, the steps leading up to applying for a corporation may take longer as they are going through new processes and may need to do more research than someone who is well versed. Someone who has opened several companies before may work more quickly as they are experienced in these processes and may have a better idea of what they are working with. TRUiC has many guides to help ensure you don’t miss anything along the way. Stop by their website to check it out https://startupsavant.com/how-to-form-a-corporation.
Working with an agent
Once a business owner has done all they’re planning and research and knows what exactly they want to do, they most likely will get in touch with a registered agent and start looking for their initial director to begin working on formation documents. This is another process that could take weeks or months to complete depending again on the experience level of the business owner. Finding a registered agent may not be difficult in itself, but working on all of the documents needed to submit could take some time. Each document has to meet government standards and it is the agents job to make sure they do. They will need to look over each document and let the business owner know if anything needs to be corrected before being submitted to the government. Once that process is complete, it’d be time to take the next step.
After completing all documents and communications with the business owners registered agent, the documents will be submitted to the government. This part depends on how quickly the government office can process the forms and request. This process could take between 4-6 weeks to process through the Secretary of State office, though at times there are cases that can extend this process even longer. Some states offer an expedited process which would speed this process typically to 2-3 business days. This is at extra cost with the application but the cost is typically minimal especially in the scheme of start up costs. If for some reason the corporation application isn’t approved the first time it is submitted, the business owner would need to revise their documents and resubmit which would extend their time as well.
The process from conception to approval, could take months if not years to complete and these are just the first steps. After the corporation has been approved through the government, there is still a lot of work to be done. One important task is applying for an EIN which can be done online or through the mail. The mail would typically take longer than the online process which could be done almost immediately.
After this is done, the business owner would want to find their initial director and shareholders to start creating bylaws, formation documents, and start assigning roles. This again is a process that could take time depending on how ready the business is to get started. If the business already has shareholders who are interested and ready to get started, this process may not take as long as someone who is new to startups and has to go out and make these connections. Making connections and finding shareholders could take time in itself which again would extend how long the process takes.
As Henri Benezra, a serial entrepreneur and CEO of SnatchBot says: “Your time to market has to be quick and that is why planning and sound advice is a key part of the success – as much as technical expertise and other elements are. This is where our board members look to services like TRUiC to save time and money”.
The amount of time it takes to start a corporation in the US comes down to planning. How much has been planned already? How much is in place before starting the official process? If everything is in place and the business owner opts for an expedited corporation process, this could be done in a matter of weeks. In other cases, this could take months or years. It all depends on the situation and business owners involved.