Who Should Be The Registered Agent Of An Llc?

A registered amanuensis is an individual or company that receives service of process, legal documents and official notices on your business's behalf. When registering a business entity, yous'll be required to appoint a registered agent who has a concrete address in the state of registration.

Not just anyone can fill this role, though. There are certain rules you need to follow when choosing one. Find out why you lot need a registered agent, who you can engage and how to change agents.

Who needs a registered agent?

Any business that is registered with the state needs to appoint a registered agent, besides chosen a statutory agent or resident agent in some states.

The following types of businesses demand to engage one:

• Corporations

• Limited liability companies

• Limited partnerships

• Limited liability partnerships

• Limited liability limited partnerships (not recognized in every state).

If you have one of these business types, yous'll exist asked to proper noun your registered agent during incorporation or business concern registration. There'due south typically a spot to designate your registered agent on your articles of incorporation or manufactures of organization.

General partnerships and sole proprietorships don't need to designate one because these business types are not registered with the state. Of course, all businesses need to keep up with concern revenue enhancement obligations and reply in a timely fashion to legal papers. Yet, the government doesn't proceed registered agent information on file for sole proprietorships and general partnerships.

Why do you need a registered agent?

States have required businesses to appoint registered agents for decades. The main purpose is to ensure that there's a reliable way for the public, the courts and the government to contact your company. Once the state has your registered agent information, it'due south a matter of public record. Anyone searching through a concern entity database can find out who serves this role for your company.

More specifically, here are the iii chief reasons why registered agents are important:

1. Receive legal process:  People with legitimate legal complaints against a business have an address to transport service of process.

2. Authorities can contact yous:  The government knows how to contact a business concern that's delinquent on taxes or noncompliant with other laws.

3. Stay in compliance:  Official papers notifying you of any action you demand to accept go to one address.

Near businesses rent a legal service or an attorney to serve every bit registered agent. Your registered agent will receive legal, taxation and other official mail for you lot, forward the documents to your business address and notify you of any deadlines or deportment that you lot need to take. For urgent documents, such as observe of a lawsuit, you'll likely be notified the very same day.

Registered agent requirements

In general, registered agents must come across the post-obit requirements:

• Age:  If you use an individual, they must exist at least xviii years old.

• Residency:  If y'all use an private, they must be a resident of the state of registration. If the registered agent is a company, information technology can be a domestic or foreign entity, as long every bit it'southward authorized to do business concern in the state.

• Physical address:  Must have a physical address in the land of registration. This location is usually called the "registered office." P.O. boxes don't count, and then you tin can't apply a UPS Shop, for example.

• Availability:  Must exist bachelor to receive post and sign official documents during normal business hours, Monday to Friday, nine a.one thousand. to v p.m.

Different states have slightly unlike regulations. For example, in Virginia, simply licensed attorneys or officers or members of the business concern tin can serve as registered agents. And Arizona doesn't mandate that registered agents need to be available during normal business hours. Your state's business concern filing agency will exist able to tell you more about state-specific requirements.

In some states, the registered agent must submit a consent form indicating that they've agreed to be your visitor's registered agent.

Go along in listen that if you're registered to do business in multiple states, each country volition crave you to name a registered agent who has a physical address in that state.

Who can serve as your appointed amanuensis?

Every country gives yous the pick to appoint yourself, someone else within the visitor or a third party, as long as the appointed amanuensis meets the requirements mentioned in a higher place (plus any boosted country-specific requirements). The only caveat — yous can't name your business as its own registered agent. At that place needs to a separate, responsible party, whether that'due south an individual or an outside agency.

Any of the following can serve:

• Yourself

• A business partner, officeholder, manager or fellow member of the business

• A business organisation lawyer

• A company that provides this specific service, such as LegalZoom or Rocket Lawyer.

Often, the quickest, to the lowest degree expensive way is to simply appoint yourself or another person in the company equally the registered agent. Simply concern owners frequently notice that this is besides time-consuming or inconvenient and end up appointing either a lawyer or a service.

Joe Horan, the owner of Wrightwood Homes, an Indianapolis-based holding buyer, says:

"I originally chose myself considering it was the easiest manner to start my LLC. But I've recently chosen my attorney to be my registered agent. The main reason is that my chaser also has her own real estate business, so she understands the details of mine. She can handle all necessary paperwork and exist the 'legal face' of my business concern. It's fairly inexpensive for the service. I pay about $100 per year for my attorney to exist the registered agent for my business."

Rithvik Musuku, the president and CEO of Advancing Scientific discipline Worldwide, went with an even less expensive selection:

"In Arizona (where we are incorporated), a registered agent tin be any person, and in that location is no requirement for them to be available during normal business organization hours. One of my family unit members living in Arizona is the registered amanuensis for Advancing Scientific discipline Worldwide. I would suggest that those looking to first a business expect into the registered agent requirements for their specific states."

Ultimately, the state doesn't care and so much nearly who you cull, as long every bit they're doing what's required of them, and so make certain your choice is convenient for yous.

Reasons to utilise a legal service

Dozens of legal service websites, including LegalZoom, Rocket Lawyer and IncFile, offer registered agent services for a fee. There are multiple benefits to using one of these services, as opposed to appointing yourself or someone else within the visitor.

These are the benefits of using a legal service:

Cheap

LegalZoom, Rocket Lawyer and IncFile charge near $150 per year for registered amanuensis services. You tin can find fifty-fifty less expensive services, but the nice thing nigh sites like LegalZoom is that they also provide other kinds of legal assistance with business setup and maintenance.

As your registered agent, they will accept all legal and official correspondence on your company's behalf, forward you the documents and requite yous timely notifications nearly pending deadlines or actions that yous need to accept.

Saves y'all time

Nearly one-third of small-business owners piece of work more 50 hours per week. If y'all're spending time sorting through official postal service, that adds to your already busy lifestyle.

By using a service, you lot're free to get on vacation or take fourth dimension off without worrying that you lot're missing important mail service. Yous too save time of going through junk mail. Since a registered agent's accost is a matter of public tape, you will receive a lot of junk mail if yous appoint yourself.

Privacy

Having a registered agent means that their address is public tape, not your own. This protects your business to some extent from spammers. In addition, when yous take an appointed agent, you can avert potentially embarrassing moments in front end of customers. Imagine beingness served with a lawsuit while you lot're helping a client. A service volition transport you important documents via email and postal mail.

Organization

If yous have a fast-growing business organisation, it can exist tough to keep all your important paperwork and deadlines straight. Having a registered agent is one way to ensure that nothing gets lost in the shuffle. In addition to accepting official correspondence, LegalZoom and many other legal services will create a compliance calendar (like the one pictured above) for your business, noting of import government deadlines.

Matt Ross, co-owner of RIZKNOWS and The Slumber One thousand, which operate multiple net backdrop, chose LegalZoom afterwards using the website for LLC setup.

"We used LegalZoom to form our LLC, then nosotros thought it was easiest to stick with them every bit our registered agent besides… Whenever they receive documents from the state, they immediately snail-mail united states of america copies. Within the LegalZoom business relationship portal, y'all can also merely download PDF copies of the documents as well. In addition, there is as well a calendar inside the LegalZoom account portal that shows you when important deadlines are approaching."

Photo credit: Texas Secretary of State

Changing your registered agent

No matter who you select, yous'll demand to keep the information upwards to date. Having a registered agent is an ongoing requirement, meaning that you need one as long equally your business is operating.

If yous change your registered agent or their contact data changes, yous'll demand to inform your state's business filing agency. In about states, at that place is a alter form (example from Texas shown to a higher place) that yous can download and make full out online. Some states allow electronic filing, while others crave that you lot mail service in the grade. The fee for changing your appointed amanuensis is usually pretty low, $25 to $50 in well-nigh states.

It's easy to forget about updating your registered agent, only brand sure y'all fill out the necessary papers. The fines for a lapse can be pretty hefty. And if you lot get too long without an appointed agent, the state can revoke your document of good standing or even dissolve your visitor.

A version of this article was start published on Fundera, a subsidiary of NerdWallet

Source: https://www.nerdwallet.com/article/small-business/what-is-a-registered-agent

Posted by: collinsbetaletted.blogspot.com

Share this post