Why Do You Need a Registered Agent for Your LLC?
Who Is a Registered Agent? What Does a Registered Agent Do?
A registered agent for your LLC is simply a person or entity designated to accept legal documents, service of process, and official mail on your LLC’s behalf. However, before giving detailed information about a registered agent, let us briefly remind the LLC establishment steps.
Steps to Form an LLC
- Decide where to form your LLC,
- Choose a name for your LLC,
- Get a Registered Agent,
- Create an LLC operating agreement,
- Register your LLC,
- Get EIN,
-Open a US business bank account,
-Get business insurance,
-Get an ITIN (if you’re a non-US citizen without SSN),
- File your taxes and annual reports, pay annual fees on time,
- Complying with city, county, and state requirements (Consult with a Business Lawyer)
If you are starting your business and forming an LLC or corporation, you are required to have a registered agent for your LLC (also known as resident agent, statutory agent, or agent for service of process) and a registered office in most states.
The reason why such a person called a "registered" agent is that you submit a form to the state that “registers” him, her, or it to be your business’s agent for official communication purposes.
A registered agent for your LLC can be a person or entity.
Who Can Be A Registered Agent for Your LLC?
Requirements can vary slightly from state to state, but both individuals and business entities are generally allowed to serve as a company’s registered agent. Individuals must meet the following registered agent requirements:
-Being 18 years or older,
-Having a physical address in the state where the business is registered,
-Being available (in person) during regular business hours.
You or another member of your business, member of your LLC, an employee of your corporateion can serve as a registered agent for your LLC. Similarly, your lawyer, spouse or friend, or trusted person can serve as a registered agent for your LLC.
Another option would be to hire an experienced registered agent service (commercial registered agent) to guide you through the process.
Many small businesses use individual registered agents to save money. Using an individual registered agent does have a few potential risks: failure to keep his or her address up to date with the Secretary of State can cause misdelivery of important papers or summons. The agent must be available to receive legal documents, annual reports, tax forms, summons (service of process), and other official government correspondence during regular business hours.
The Benefits of a Registered Agent for Your LLC
Hiring someone else to serve as a registered agent for corporation has its advantages. The major benefits of using an affordable, national, third-party registered agent service officer.
-Compliance with the legal regulations: Help businesses stay up to date on state requirements by sending regular reminders for annual report filings and other official notifications or summons. Natural disasters or theft can cause unexpected losses of your important business and legal documents.
-Quality document management: A registered agent would scan your official documents so you can access them from your online account from anywhere in the world. Legal documents of your LLC will be received and stored for safekeeping.
-Professional support: Registered Agents can help you find accountants and legal professionals. They offer personal guidance if your business runs into a problem.
-Operational flexibility: A registered agent must have a legal residence in the state where the LLC is registered. If you form an LLC in multiple states, you will need to have a registered agent for your LLC for each state. They will be available during regular business hours so you can choose your work hours and place.
Registered agent services will save you time and money
How Much Does a Registered Agent Service Cost?
Registered agent services typically cost anywhere from $100 to $300 per year but hiring a registered agent for your LLC will save you time and money in the long-run as we mentioned before.
Can You Change Your Registered Agent?
Yes, you can change your current registered agent by filling out the proper form provided by your state's business services office at any time. In some states, there may be a nominal fee up to $100. The total cost would vary depending on the number of states you are registered in to do business with your LLC.
Can You Run Your LLC Without a Registered Agent?
No, running your business without a Registered Agent for your LLC ultimately lead to your business being completely shut down. At least, you would lose some of the LLC's benefits. This may mean personal liability for the debts. Moreover, the state can suspend permission to conduct your LLC.
To start and run your business in the US, you need a lot of documentation to be prepared. Legal procedures can be time-consuming and detailed. You cannot be an expert in every subject you need. An expert consulting firm you can trust will save you time and money.
Comprised of experienced business attorneys, marketing experts, business advisors, and blockchain professionals, Liberty Business has the answers to any questions or needs a blossoming business may have.