LLC Effective Date
An LLC effective date is the date your LLC goes into existence. Think of it as your LLC’s birthday. This date is something you should keep in mind when it comes to filing as there are costs associated with it.
Note: Depending on the state where you file, a delayed effective date may also be called “future effective date”, “delayed file date”, or “future file date”. They all mean the same thing.
You want your LLC to be born between January 1st and May 1st. The sooner the better.
Your LLC will be required to file an Annual Report with the state. These reports are usually due between January 1st and May 1st. The fee associated with that Annual Report will be due at the time you file it.
To avoid having to file a report and pay an extra fee shortly after you establish your LLC you should either wait until January or request a “delayed effective date” of January 1st. You don’t want to file your Articles of Organization in October, only to have to file an Annual Report (and pay the fee) two months later.
This is most often referred to as using a “delayed effective date“.
If you request that the state give your LLC a delayed effective date, your LLC will go into existence on that date.
If you don’t request that the state give your LLC a delayed effective date, your LLC will go into existence on the date it’s approved.
Tip: To see what date the state assigned as your effective date simply look in the “acceptance stamp”. That’s your LLC’s effective date.
So when should I file?
If your state allows the 90-day* delay, you can file no earlier than October 1st and request a delayed effective date of January 1st of the following year. If you don’t need your LLC open right away, this is the best option.
*90 days is the norm. The number of days can range from 0 to 15, 60, 90, and even no limit depending on the state. See the chart below for your state's range.
If your state doesn’t allow you to use a delayed effective date, then you will unfortunately have to wait until January to form your LLC, or pay the extra costs of filing early.
Note: Florida is the only state where you are allowed to backdate. There you can back-date your LLC filing for up to five days. So if you live in Florida, its May the 5th, and while donning your Jedi robe and lightsaber you suddenly remember that you forgot to do your LLC filing, don’t fret, you can still do it.
What does this do?
It saves you money in two ways: Taxes, and Fees.
Taxes-
If you delay the birthday of your LLC to January there is no need to file federal, state, or local taxes related to it until the following year.
Fees-
If you delay the birthday of your LLC to January it pushes your first Annual Report date to the following year, saving you both the time it takes to write it and the filing fee associated with it. In some states, this can be over $800 dollars.
Tip: If you are converting a Sole-Proprietorship to an LLC, you may think you can use the birth date of the first to establish the second. That is not the case. What you are essentially doing is ending one company and starting a new one. Your LLC is considered a brand-new business and will therefore have its own effective date.
As with everything else, some of this varies by state. So be sure to check the rules of your state regarding effective dates before you file.
Requirements by State
| State | Can I choose the date/Via Email or Online | Can I forward the date? |
|---|---|---|
| Alabama | Yes/No | Yes, up to 90 days |
| Alaska | No/No | No |
| Arizona | No/Yes | Yes, up to 90 days |
| Arkansas | Yes/Yes | Yes, up to 90 days |
| California | Yes/Yes | Yes, up to 90 days |
| Colorado | No/Yes | Yes, up to 90 days |
| Connecticut | No/No | No |
| Delaware | Yes/No | Yes, up to 180 days |
| Florida | Yes/Yes | Yes, up to 90 days |
| Georgia | Yes/Yes | Yes, up to 90 days |
| Hawaii | No/No | No |
| Idaho | No/No | No |
| Illinois | Yes/No | Yes, up to 60 days |
| Indiana | Yes/Yes | Yes, up to 90 days |
| Iowa | Yes/Yes | Yes, up to 90 days |
| Kansas | Yes/No | Yes, up to 90 days |
| Kentucky | Yes/Yes | Yes, up to 90 days |
| Louisiana | No/No | No |
| Maine | Yes/No | Yes, up to 90 days |
| Maryland | No/No | No |
| Massachusetts | Yes/Yes | No |
| Michigan | Yes/No | Yes, up to 90 days |
| Minnesota | No/No | No |
| Mississippi | Yes/Yes | Yes, up to 90 days |
| Missouri | Yes/Yes | Yes, up to 90 days |
| Montana | No/Yes | Yes, up to 90 days |
| Nebraska | Yes/Yes | Yes, up to 90 days |
| Nevada | No/No | No |
| New Hampshire | Yes/Yes | Yes, up to 90 days |
| New Jersey | No/Yes | Yes, no limit |
| New Mexico | Yes/Yes | Yes, up to 90 days |
| New York | No/Yes | Yes, up to 60 days |
| North Carolina | Yes/Yes | Yes, up to 90 days |
| North Dakota | Yes/No | Yes, up to 90 days |
| Ohio | Yes/Yes | Yes, up to 90 days |
| Oklahoma | Yes/Yes | Yes, up to 90 days |
| Oregon | Yes/Yes | Yes, up to 90 days |
| Pennsylvania | Yes/Yes | Yes, no limit |
| Rhode Island | Yes/Yes | Yes, up to 90 days |
| South Carolina | Yes/Yes | Yes, up to 90 days |
| South Dakota | Yes/Yes | Yes, up to 90 days |
| Tennessee | Yes/Yes | Yes, up to 90 days |
| Texas | Yes/Yes | Yes, up to 90 days |
| Utah | Yes/No | Yes, up to 90 days |
| Vermont | Yes/Yes | Yes, up to 90 days |
| Virginia | Yes/No | Yes, up to 15 days |
| Washington | Yes/Yes | Yes, up to 90 days |
| Washington D.C. | Yes/Yes | Yes, up to 90 days |
| West Virginia | Yes/Yes | Yes, up to 90 days |
| Wisconsin | Yes/Yes | Yes, up to 90 days |
| Wyoming | Yes/Yes | Yes, up to 90 days |
If you’ve determined what your Effective Filing Date is going to be, it’s time to write your Articles of Incorporation.
