Limited liability companies and sole proprietorships are the two most popular forms of business in the U.S. According to the latest data from the 2018 National Small Business Association Report, 35% of small business owners prefer the LLC structure, while 12% prefer sole proprietorships.
Several advantages make the LLC structure popular, including no ownership number limitations, no limitations on who can own them, pass-through taxation, and personal liability protection. Furthermore, LLCs are easy to form with easy filing procedures in every state. Generally, you need to provide the Secretary of State with a business name, your chosen registered agent, and the company articles of organization. After that, you create the business operating agreement and apply for an Employee Identification Number (EIN) before your business is ready to run.
What is a Registered Agent Service?
Registered agent services are the person or company you designate to receive legal and state correspondence on behalf of your LLC. They immediately relay the message, ensuring you don’t miss any critical deadlines that may affect your tax status, make your business non-compliant, or cause you to miss an important court date in a lawsuit.
Why Have a Registered Agent Service
It is a legal requirement of all LLCs and corporations to provide the name of a registered agent on their business formation filing. Therefore, you must find one that meets the legal requirements for a registered agent before completing the paperwork for the business formation.
Requirements for Providing Registered Agent Services
Besides professional registered agent services, you can also choose a friend or lawyer or opt to be your own registered agent. However, whichever of these you choose, these are the legal requirements:
The physical address of the registered agent must be in the same state as the business. Disclosed registered agents cannot have a P.O. Box address and must be present to receive correspondence during normal business days and hours.
States have different guidelines, but the person must be 18 and above and available to receive the mail at all times. Therefore, if you are too busy running your business and your friend is never available, a specialized registered agent service is the best way to ensure you receive all your business mail.
Copyright: TRUiC
What Features and Advantages to Expect from Registered Agent Services
Besides accepting correspondence, registered agent services also do business formation filings, forward your mail, remind you of annual filing reports, submit documents on your behalf, etc. Some also provide legal and accounting support.
Since your registered agent is your business’s primary point of contact with the state, their main task is to receive and send legal documents.
In exchange, they ensure you remain compliant and provide peace of mind since you can focus on doing business while knowing that you will receive all important notifications. Finally, they ensure you maintain your privacy since their address appears on public records, not yours.
Finding the Best Registered Agent Services
Finding a respectable registered agent depends on the type of business and its requirements. You also need to research the additional services you might need from the service. However, resources like the ones provided by TRUiC, the business information platform, can make it easier for you to decide on the best registered agent services.
TRUiC’s team evaluates registered agents based on their pricing, features, user reviews, customer service, fee structure transparency, and ease of use, making it easier for you to choose. Furthermore, they conclude that the top 5 are Northwest, ZenBusiness, Incfile, Rocket Lawyer, and Legal Zoom.
For example, ZenBusiness has affordable pricing, while Northwest provides premium customer service and a streamlined ordering process. Furthermore, Incfile’s learning center offers tons of free business information. Finally, Rocket Lawyer and Legal Zoom provide legal support.
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Bottom Line
Since you have opted to create an LLC, like 35% of other small business owners in the U.S., you need to appoint a registered agent when forming and filing your company. Choosing the best provider is far easier than you think, so do your research and decide which one meets your requirements best. Undoubtedly, the services provided by registered agents can help you run your LLC more effectively, giving it a better chance of survival in the current competitive market.
