How Long Does It Take to Form a U.S. Company: A Step-by-Step Process & Turn Around Time

Setting up a U.S. company is an essential step for global entrepreneurs looking to expand their business. Whether you are a single-member company or forming a multi-member entity (multi-member LLC or partnership), Business Globalizer helps streamline the process for a smooth and compliant company formation. Here’s a detailed process sequence and turnaround time (TAT) for forming a U.S. company.

Step 1: Placing an Order for U.S. Company Formation

The process begins once the client selects a package, confirms an order by completing the payment, and submits the necessary information.

Required Documents for U.S. Company Formation

To proceed, we require the following:

• Personal Identification Document (A clear picture of Passport, NID, or Driving License)
  
  
• Proof of Residential Address (Recent Bank Statement or Utility Bill)
  
  
• Proposed Company Name
  
  
• Company Type/Structure (LLC, Corporation, etc.)
  
  
• Business Description
  
  
• Phone Number for Communication
  
  
• Email Address for Communication
  
  
• Organizer Name of the Company

Additional Requirements for Multi-Member Business Structures

• Ownership Details (Owner/Shareholder/Member Information)
  
  
• Details of EIN Responsible Party

Note: To take a clear passport picture, place it on a flat white background under bright, even lighting to avoid shadows. Use a high-resolution camera, hold it steady, ensure no fingers, glare, or reflections are visible, and capture all details clearly without any shadows.

Step 2: Document & Business Name Verification

• Business Globalizer verifies the received documents. The client will be notified to provide the correct information if any missing or incorrect documents are found.
  
  
• We check the availability of the proposed company name in the selected state. Some names have legal restrictions, and certain names may create difficulties in opening a business bank account.

Step 3: Company Formation & Registered Agent Appointment

• If everything is in order, we proceed with filing the company formation documents.
  
  
• We also appoint a registered agent in the chosen U.S. state.

Step 4: EIN Issuance Process

After company formation, we apply for an EIN (Employer Identification Number), which is required for tax purposes, banking, and payment gateway setup.

Step 5: Business Bank Account (If Required)

If the client wants a business bank account (included in our Standard and Premium packages), we assist in opening a U.S. business bank account.

Step 6: Payment Gateway Setup (Included in Premium Package Only)

For businesses that need to accept online payments, we provide assistance in setting up payment gateways such as PayPal, Stripe, and other merchant processing accounts.

Our team ensures that the business meets the compliance and verification requirements for smooth payment processing.

Step 7: ITIN Application (Included in Premium Package Only)

• If the client requires an ITIN (Individual Taxpayer Identification Number), we assist with the ITIN application process, ensuring all documents are submitted correctly to the IRS.
  
  
• An ITIN is often needed for non-residents who must comply with U.S. tax regulations, access payment processors, or meet banking requirements.

Step 8: Client Consultation Throughout the Process

We maintain communication with the client throughout the process to ensure their requirements are met.

U.S. Company Formation Processing Time

Standard Processing Time

• 2 to 15 days, depending on the selected state and relevant authorities.

Varying Factors That May Affect Processing Time

Processing time may vary due to:

• State-Specific Processing Delays (Some states process formations faster than others)
  
  
• U.S. Public Holidays
  
  
• U.S. Government Office Closures
  
  
• High Volume of Applications (Peak Business Seasons)
  
  
• Errors in Required Information or Documents
  
  
• Additional Scrutiny from the State or IRS
  
  
• Delays in EIN Issuance (If Required)
  
  
• Banking Compliance & Verification Issues (For business bank accounts)

Errors in Required Information or Documents That Can Delay U.S. Company Formation

Mistakes in a company formation application can cause significant delays. Here are some common errors and how to avoid them:

1. Providing an Unavailable or Restricted Business Name

• Mistake: Choosing a business name that is already taken or includes restricted terms.
  
  
• Solution: Before submission, ensure the name is unique and complies with state regulations. Provide 2-3 alternative names as backup in case the primary choice is unavailable. If the name is still restricted, we will reach out to you. If you feel the name selection is a hassle, feel free to reach out to our support.

2. Submitting Incorrect or Unclear Personal Identification Documents

• Mistake: Providing an expired passport, an illegible scan, or a document with mismatched details.
  
  
• Solution: Ensure the passport, NID, or driver’s license is valid, clearly seen in the picture, and matches other provided details.

3. Incomplete or Outdated Proof of Residential Address

• Mistake: Submitting an old or invalid address proof (e.g., a utility bill older than 3 months and with a changed address).
  
  
• Solution: Provide a recent (within the last 3 months) bank statement or utility bill that clearly displays your name and address.

4. Selecting the Wrong Business Structure

• Mistake: Choosing an incorrect business entity type (LLC vs. Corporation) that doesn’t align with the business model.
  
  
• Solution: Understand the differences between an LLC—also understand that LLCs could be single-member and multi-members—and a Corporation, or consult with us for expert advice before selecting your company type.

5. Inaccurate or Missing Ownership Details (For Multi-Member Businesses)

• Mistake: Failing to provide accurate owner/member/shareholder details or not specifying the EIN responsible party.
  
  
• Solution: Clearly list all owners/members, and their ownership percentages, and designate an EIN responsible party before submission.

6. Providing an Invalid or Unverified Mailing Address

• Mistake: Using a mailing address that is not valid or cannot receive official documents.
  
  
• Solution: Ensure your email address provided is active, accessible, and suitable for business correspondence.

7. Delays in Submitting Signed Documents

• Mistake: Not returning signed documents (if required) on time.
  
  
• Solution: Review, sign, and return required documents promptly to avoid unnecessary processing delays.

Real-World Exceptions

Fastest Case

Same-day company formation: In some cases, we have successfully formed a company within 24 hours.

Delayed Case

10-15 days: Some formations may take longer due to state-specific processing delays or other requirements-related hold-ups.

Important Disclaimer: Business Globalizer’s Role in the Process

• Business Globalizer facilitates the U.S. company formation process by verifying documents, preparing applications, and filing them with the appropriate authorities. However, once submitted, we have no control over state processing timelines, IRS approval, or bank account verification delays.
  
  
• We proactively assist clients by:
  • Ensuring all required documents are correctly prepared and submitted.
    
    
  • Checking company name availability and advising on potential restrictions.
    
    
  • Providing guidance on business structures and compliance requirements.
    
    
  • Facilitating EIN issuance and business bank account setup where applicable.
    
    
  • Assisting with the appointment of a registered agent for legal compliance.

• However, processing times depend on multiple external factors, including:
  • State-specific processing delays (Some states take longer than others).
    
    
  • IRS workload and tax season backlogs (Affecting EIN issuance).
    
    
  • Third-party banking verification requirements (For business bank accounts).
    
    
  • Additional scrutiny or compliance checks from government agencies.
    
    
  • U.S. holidays, federal closures, and peak season delays.

• Our support team regularly follows up with state authorities, the IRS, and banking partners for updates on behalf of our clients, ensuring that any additional information or documents requested are promptly provided. However, we cannot guarantee an exact processing time or influence the final outcome.

• Unforeseen Delays & Third-Party Decisions
  • Some state offices, banks, or the IRS may take longer than expected without providing a reason.
    
    
  • Additional documentation may be requested at the discretion of these authorities.
    
    
  • Occasionally, EIN applications or bank approvals may face unexplained delays even when all requirements are met.

• Business Globalizer holds no responsibility for any delays, additional requirements, misplaced documents, or processing failures caused by:
  • State government offices
    
    
  • The IRS
    
    
  • Business banking institutions
    
    
  • Third-party verification agencies

• Clients should be aware that the final decision, approval, and processing timeline are entirely at the discretion of these external authorities. While Business Globalizer will make every effort to facilitate a fast and smooth process, we cannot override or expedite government decisions beyond their standard processing times.

Refund Policy

• Business Globalizer operates on a non-refundable basis once the U.S. company formation process has begun. Since company registrations involve state filings, EIN applications, and third-party processing, costs are incurred immediately upon initiating the service.
  
  
• Refunds may be considered under the following conditions:
  • If the client cancels before any document submission or filing takes place, a full refund may be possible (vary case to case).
    
    
  • If Business Globalizer is unable to proceed due to an internal issue, a full refund will be provided.
    
    
• No refunds will be issued under these conditions:
  • If the company formation has already been processed and submitted to the state.
    
    
  • If the EIN application has been submitted to the IRS and is in progress.
    
    
  • If delays occur due to state processing times, IRS hold-ups, or banking verification issues, as these are beyond our control.
    
    
  • If the client provides incorrect, incomplete, or fraudulent information, leading to application rejection.
    
    
• For any refund inquiries, please contact our support team to review your case or check our detailed refund policy.

How to Contact Us?

• Existing Clients: Reach out to us directly through your dashboard for support.
  
  
• New Clients: If you’re looking to form a company, or trying to purchase any other services, contact our support team through the official channels or book a consultation for personalized guidance.

Final Thoughts

The U.S. company formation process requires accurate documentation and careful submission. While Business Globalizer ensures a smooth and efficient process, external factors like state processing times, IRS delays, and banking compliance issues can sometimes extend the timeline.

Need help forming a U.S. company? Business Globalizer is here to assist you at every step!
Get started today! You can also join our Business Globalizer Forum to get insightful discussions or reach out to our support.