Are you in the process of learning how to start an LLC?
A Registered Agent (also referred to as a Resident Agent or Statutory Agent) is an individual or business entity considered crucial for receiving important documents and communications on behalf of your LLC.
In this article, I'll go through what a Registered Agent is, why your LLC needs one and how to select the best-registered agent for your business. In the process, I’ll answer the most common questions one might have about a registered agent.
Who Is The Registered Agent Of An LLC?
A registered agent for an LLC is the entity responsible for handling important documents and communications on behalf of the company. This can include service of process notices, tax forms, and other official correspondence. It's essential to have a reliable registered agent to ensure that critical information is received and processed promptly.
Another responsibility of the registered agent is to act as a point of contact for government agencies. This includes the Secretary of State, the IRS, and other state and federal entities. The registered agent must have a physical address in the same form where the LLC is organized. Typically, this address will be where official documents are delivered and stored.
Can A Registered Agent Be Owner Of LLC?
Yes, the owner of an LLC can also serve as its registered agent. However, this is discouraged since it's important to have a reliable third party acting for your business. An individual or business entity not affiliated with the company assures that all documents and communications will be handled promptly and properly.
What Does A Registered Agent Do For An LLC?
Amongst the duties of a registered agent, here are the main ones:
Who Can Be A Registered Agent For An LLC?
The registered agent may be an individual or business entity such as a law firm or corporate services provider. Depending on the state, some LLCs may appoint themselves as registered agents.
However, hiring an outside service to fulfill this role is usually best since they can provide professional assistance with document management and legal compliance matters. Additionally, having a separate third-party handle these responsibilities allows you to better protect the privacy of your LLC's members.
The agent must also be accessible during regular business hours.
Failure to comply with these requirements may result in penalties or fines from the state. It's also essential to ensure that the registered agent can be reached easily via phone or email in case urgent matters need attention.
Is A Registered Agent Required For LLC?
Yes, a registered agent is required for an LLC in most states. Since this entity acts as a point of contact for government agencies and must have a physical address in the same state where the LLC is organized, choosing a reliable entity is vital.
How Can You Find A Registered Agent For Your LLC?
There are several different ways to find a registered agent for your LLC. One option is to contact a corporate services provider or law firm. These businesses can provide you with a list of registered agents who are qualified and experienced in handling document management and legal compliance matters.
Another option is to search online for registered agent services. Several websites offer this service, and you can typically compare pricing and reviews before deciding.
Finally, some LLCs may appoint themselves as their registered agents. However, hiring an outside service to fulfill this role is usually best since they can provide professional assistance with document management and legal compliance matters.
What Are The Benefits Of Having A Registered Agent?
Here are the main benefits of having a registered agent for your LLC:
How Much Does It Cost To Have A Registered Agent?
The answer is that it depends.
While most services range between $100 to $300 per year, some states may require additional fees.
Some agents also provide additional business-related services, including website registration, branding, logo creation, etc. These services can add to the cost of hiring a registered agent, but they often come with additional benefits that may be worth the extra expense.
Also, if you need to change your registered agent or make any other changes to your LLC's statement of information, additional costs can be involved.
Can You Be Your Own Registered Agent For An LLC?
Put differently, the question is, “Do I need a registered agent for my LLC?”
If, as the business owner, you have a physical street address in the state where your corporation or LLC is formed, then you can be your own Registered Agent. However, the registered corporation or LLC cannot name itself its Registered Agent.
This makes sense from a practical point of view since if you are the Registered Agent for your LLC or corporation, then any legal notices sent to the company would be sent to you.
However, it could also mean it becomes difficult for you to remain objective in handling disputes or complaints regarding your business.
It's important to remember that being your Registered Agent means you will be responsible for filing all necessary documents on time. Failing to do so can result in hefty fines or even the dissolution of your business. Therefore, it's usually best to appoint a professional registered agent service to handle these matters for you.
How To Get A Registered Agent For LLC: Factors To Consider
Here are the main factors to consider when choosing a registered agent for your LLC:
How To Change Registered Agent On LLC
The only way to change a Registered Agent is by filing a document with the Division of Corporations.
These forms vary from state to state, but generally, you will be required to provide the name of your new Registered Agent and their address. You’ll also need to include the date of the change and a written declaration that you are authorized to make the change.
Once all forms are correctly filled out and filed, it typically takes several weeks for the change to take effect. However, this time frame may vary depending on the state where your LLC is registered.
It’s important to remember that filing for a change in Registered Agent does not release any previous agents from their responsibilities. They remain accountable for any legal notices before the changes are filed. Therefore, it’s best practice always to ensure your company has a valid Registered Agent on record to avoid potential legal issues.The above also applies when closing an LLC.
Is A Registered Agent A Member Of An LLC?
The only people who can be registered agents are those who own the LLC. If they don't own it, they cannot be registered agents. Generally, an LLC's members own it and have voting rights in the company.
The registered agent represents the company in legal matters and must be appointed by one or more members. Therefore, a registered agent doesn't need to be a member of an LLC, but they must be set by someone who is.
What Is A Registered Agent For LLC- FAQ
Knowing what is an LLC registered agent and how to get a registered agent for LLC is essential. An LLC Registered Agent serves as the point of contact between your business and the state or federal government.
The registered agent is responsible for receiving legal documents on behalf of your company, such as tax forms, summonses, subpoenas, and more.
Yes, most states require LLCs to have a registered agent. With a business being a legal entity, a registered agent is an individual or business entity that has agreed to accept formal documents on behalf of the LLC.
A registered agent's role is to provide a legal address where documents such as the service of process and other official notices can be delivered on behalf of the LLC.From a single-member LLC to a larger business entity, the registered agent acts as an intermediary between the LLC and the state in which it is registered.
Sometimes, the need to remove a registered agent from an LLC arises.
It is possible, but it varies from state to state. In most cases, you must file a form with the Secretary of State's office to make the change. You'll need to provide the name and address of your new registered agent as well as a written notice of the change.
Once you have filed the required forms, it typically takes a few weeks for the changes to take effect. However, this timeline may differ based on the state in which your company is registered.
Yes, any LLC license and permit work will require the use of a registered agent as they are the entity designated to receive important legal documents. The most common example is when an LLC needs to obtain a business license or register with the state.
Paying yourself from an LLC depends on the type of LLC you establish and how it is set up. In a single-member LLC, for example, the owner will typically take profits from the company in the form of drawings or distributions. Multi-member LLCs may choose to pay their members as employees through payroll systems or distribute profits to members according to their agreed-upon percentage of ownership.
Ensuring that your LLC or corporation is registered correctly with the most suitable Registered Agent is essential for staying compliant and avoiding costly penalties or other legal issues.
Understanding how to utilize the services of a Registered Agent helps ensure your business is in good standing.