A registered agent is an essential aspect of an LLC. It is required that every LLC has a registered agent and this is an individual or a business who has an address in the state in which the LLC is registered. However, this address cannot be a PO Box. This individual or business receives government documents, compliance documents and service of process notices on behalf of an LLC. The registered agent must also forward these documents to the LLC within a reasonable amount of time. The US Small Business Administration notes that most businesses opt to use a registered agent service instead of doing this themselves. This is because of the many benefits which such a service offers. These benefits are explained in detail below.
Benefits of an LLC
In order to need a registered agent you must first have an LLC. This structure is so appealing to startups because it provides limited liability protection without the hassle of setting up a corporation. This is incredibly important to startups as they are able to substantially mitigate the risks associated with startups. Additionally, the LLC will protect the company itself from any liability which the owner incurs in a personal capacity. An LLC is also easier to maintain than a corporation with fewer annual requirements and lesser annual fees.
Benefits of Registered Agent Services
The first and most notable benefit of a registered agent LLC service is that most of these services also offer LLC formation services as well. This service will establish your LLC for you and do all of the paperwork and state filings which are necessary in this regard. This is a tremendous time saver especially when in the stressful and time-consuming process of establishing a startup. You will not have to worry about mistakes or incorrect information as all of this will be taken care of for you. This will leave you with more time on your hands to be able to focus on the nitty gritty of launching your startup.
The registered agent LLC service will help you by saving you time and dealing with your administration for you. These services provide comprehensive registered agent packages which will help you by taking care of the work which would otherwise need to be done. A registered agent service will receive all of your important documentation on your behalf and send this to you quickly and conveniently. Moreover, your registered agent will, in most cases, scan your documentation on your behalf and take yet another hassle off of your shoulders.
A registered agent service will take the hassle out of compliance documentation as they will complete this on your behalf. This also removes the fear from non-compliance with any of these procedures as you can rest assured that your business will be compliant at all times thanks to this being taken care of on your behalf.
If your business is incorporated in a state which is not your home state you will still require a registered agent with a non PO Box address in that state. There are many reasons to form an LLC outside of your home state. These include tax benefits and lower annual fees for maintaining your LLC. If you have decided to incorporate your LLC outside your home state you will be unable to act as your own registered agent. In a scenario such as this a registered agent service will be most useful as they can take care of this requirement on your behalf without the need for you to establish a physical presence in another state.
A registered agent service will also be beneficial in the case of your business not maintaining regular office hours or your business requiring frequent travel. You may need to be out of the office for large portions of your day if you operate a business such as an electrician or a sales business. Furthermore, if your business requires you to travel frequently you will not be available during normal hours to receive your important documentation. A registered agent service will take care of both of these problems for you as they will be available throughout the day to receive documentation on your behalf.
Many startups do not have the capital or the inclination to set up a physical office, especially given the shift which covid has brought to modern working conditions as businesses are favoring work from home situations. This will require you to disclose your home address as the address of your registered agent making it a matter of public record. This can be a violation of your privacy and bring unwanted attention to your personal residence. A registered agent service will prevent you from having to disclose your home address in such a public fashion.
If these reasons sound compelling to you, consider having a look at this website for more information on registered agent services as well as getting a discount on these services.
Copyright: Best LLC Services
Final Thoughts
There are many fantastic reasons to incorporate your startup as an LLC. The most prominent of which is limited liability protection for your assets. While an LLC is easier to establish and maintain than a corporation it still comes with its own share of maintenance. Thankfully, much of this maintenance can be taken care of for you by a registered agent service. This will save you time and hassle and allow you to focus your energy on developing your startup into the next big thing.
