There’s no escaping the fact that if you’re the owner of an LLC or corporation, you must have a registered agent and a registered office. This applies to you, regardless of where you start your company.
Thankfully, the market responded to this need. So, you can outsource this responsibility to registered agent services. If you’re not sure whether that is the right step to take, no worries. You’ve come to the right place.
Keep on reading for our full breakdown of everything you need to know about the role of an LLC registered agent. And, why you might want to hire LLC registered agent services instead.
What Is the Role of a Registered Agent?
In short, a registered agent is needed for every LLC. Someone is always ready to receive crucial legal or government papers on your behalf if you have a registered agent on file.
You may choose a person or a business to act as your registered agent.
The Requirements for Serving as a Registered Agent
While each state has its own requirements for who may serve as a registered agent, any person you choose as your registered agent must be at least 18 years old. And, a resident of the state in which your LLC was formed.
A person or business acting as a registered agent must also satisfy the following requirements.
You’ll need a physical address. The registered agent you choose must have a physical address. It can’t be a post office box or a private mail service and be located in the state where your LLC was formed.
Also, you’ll need to be available during business hours. Your registered agent must be available at the address you’ve provided in your filings during business hours. This criterion guarantees that someone is available to accept service or essential papers during regular business hours.
As long as they meet the stated requirements, any member of your LLC may serve as your LLC’s registered agent. This implies that if a person is a member of the LLC, they may own the LLC for which they are the registered agent.
If you select someone or a business who isn’t a member of your LLC to be your registered agent, they don’t automatically become an owner of the company.
As an Owner of an LLC: Should I Be My Own Registered Agent?
At this point, you’re starting to think to yourself that you can do the job on your own.
You’d be right. While you or any other LLC member may act as your own registered agent, bear the following in mind while making your decision.
The Public Record
The actual address of your registered agent must be included on your LLC filings, where it becomes public record.
This implies that anybody may see this information, potentially causing privacy issues.
If you operate a web-based company from your house, for example, you’ll almost certainly have to use your home address since post office boxes and private mailbox services don’t count as physical addresses.
The Hours of Operation
You must also be accessible during normal business hours to accept delivery of communications addressed to you as a registered agent, as well as to take service of process.
This is especially difficult for small company owners who may not have full-time workers and who may need to attend to business issues that need them to leave the office during the workday.
Operation in Different States
Every state where your LLC conducts business requires you to have a registered agent.
Unless you’re able to maintain a physical presence in each state where you conduct business, utilizing a registered agent service, which is prepared to act as your registered agent in several jurisdictions, is typically more efficient.
As long as they satisfy the requirements for serving as a registered agent, an LLC’s registered agent may also own the company. Being appointed as a registered agent, on the other hand, does not provide a person or business ownership rights in the LLC.
The Benefits of Using Registered Agent Services
The majority of small companies (those with less than ten workers) do not use registered agents.
However, there are a few particular reasons why some company owners choose to employ a registered agent; those reasons are mentioned below.
Avoiding Additional Paperwork
The cost of a registered agent is usually between $100 and $300 each year. For some company owners, the price is well worth the convenience of not having to keep track of official notifications and state yearly report deadlines.
If you use a registered agent service, your registered agent should have a system in place to monitor and inform you when yearly reports are due, so you don’t have to. In addition, all of your essential papers will be stored in one location, and you won’t have to worry about losing track of notifications.
Unusual Business Hours
A registered agent must not only have a physical address. But, also be accessible to receive service of process and formal notifications from the state during normal business hours.
Some company owners who aren’t accessible during normal business hours use registered agent services to keep their work hours flexible.
Multiple State-Based Business Locations
You’ll need to register with each state in which your company operates, and each state requires a registered agent with a physical address in that state.
As a result, many business owners employ registered agent services to ensure that they are in compliance with state laws and that all essential notifications to the company are maintained in one place, with their registered agent.
LLC Registered Agent: Simplified
If you’re a new owner of an LLC, you’re probably up to your eyeballs in paperwork and ensuring that your company is complying with any relevant regulations.
Thankfully, our guide has shed some light on why you can let LLC registered agent services take care of that responsibility in your stead. And, if you liked reading our article, then you’ll love checking out our other tips and strategies. All of them will be available in our business section.