Forming an LLC is not as easy as many would assume. To make sure you are on the right track of doing things, you need to know what the procedures and requirements are.
One vital requirement in forming an LLC is having a registered agent. This article will inform you on what is a registered agent and why is it an important requirement in forming an LLC.
State-registered entities such as LLC and corporations are required to have a registered agent. A registered agent or formally referred to as a registered agent for service of process, serves as an agent of record, statutory agent, or resident agent.
The primary role of a registered agent is to act as a recipient of legal documents on behalf of the registered business. These legal documents often include direct communication between the state and the business in various forms, such as the following.
1. Documents related to tax, such as documents from the IRS, Franchise Tax Board, and other government tax agencies.
2. Corporate filing documents such as notices or reminders on information filing. This can also include other documents sent from the secretary of state office.
3. Legal documents such as notice-of-litigation.
In forming an LLC, there are requirements that would be acquired such as creating a unique name that should include “LLC”, hire a registered agent, file the Articles of Organization or Formation in other states, create an operating agreement, and file for EIN.
Like in other states, Indiana requires the details of the LLC’s registered agent such as its name and address in filing the Articles of Organization. Filing fee varies depending on the state, for example, the Indiana LLC Cost for Articles of Organization has a minimum fee of $95 if you submit it online or $100 if you submit by mail.
You must keep in mind that your registered agent must have a physical address in the state where your LLC will be formed.
The requirements for the registered agent will significantly depend on the state in which you formed your LLC. In general, these may include the following.
1. Assigned Physical Location – One critical requirement a registered agent must have is a physical street address. P.O. Box addresses will not be accepted as an address you can use as a registered agent. Moreover, the address should be the same as the business location.
2. Normal Business Hours – Another critical requirement is an established business hour. A registered agent should be available during general business hours to accept the service of process. General business hours should be Monday through Friday from 8:00 AM – 5:00 PM.
If you are yet to decide on who to assign as a registered agent, here are three options that you can consider.
1. You as a Registered Agent – assigning yourself as the Registered Agent is one option that you can go for. However, before that, you should check with your state if this is allowed according to their guidelines. Several states will enable the company to serve as its own Registered Agent.
2. A family member or friend as a Registered Agent – Another alternative you can consider is assigning a family member or a friend as a Registered Agent. This option may be ideal in the sense that it will allow you to maintain a level of privacy.
However, assigning someone else as a Registered Agent will also have risks such as delayed delivery of essential documents, compliance risks, reliability of maintaining documents and business hours, and tracking annual report documents.
3. Hiring a Commercial Registered Agent – the third option is to hire a Commercial Registered Agent for your company. Using this option will give you the assurance that somebody is present during business hours at the registered address to receive notices and other documents. Commercial Registered Agents are also trained to monitor and promptly notify and forward notices and other documents to you in a timely manner.
Hiring a registered agent is one of the most important aspects in launching an LLC, this agent will serve as your business’ representative in receiving important legal documents. That’s why it’s important to have the best registered agent as it will help your business in terms of keeping legal records in place and avoiding legal problems.
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