Limited Liability Company (LLC) is indeed always a go-to structure when choosing a business entity. Aside from it offers liability protection that will shield your personal obligations from the business’ liabilities, it will also enable you to have pass-through taxation and get a hassle-free record-keeping experience from papers and documents.
As a legally recognized business structure, an LLC requires a registered agent who will be in-charge in the filing of all the essential papers. Specifically, a registered agent is needed before the filing of Articles of Organization, which may also be called Certificate of Formation. So you may ask, can you yourself be your own registered agent in forming an LLC?
Why do we need a registered agent?
Before anything else, we should know what are the responsibilities of a registered agent in establishing an LLC.
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Receiving and signing the legal documents
A registered agent knows how important business documents are for an LLC to run smoothly. They are in charge of receiving documents and informing the owner or all business partners involved regarding legal notices or any other business documents that need immediate attention to prevent unwanted circumstances.
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Taking action for emergencies
Legal papers are important to be addressed immediately most especially when it is a lawsuit and liability-related documents. As a business owner who is busy on operations, the registered agent could catch up with these emergencies, keeping both legal and business responsibilities attended to.
Who can be a registered agent?
Before deciding to be the registered agent for your LLC, it’s crucial to compare the benefits of S Corp vs an LLC to determine the most suitable business structure for your needs.
Legally, you can be the registered agent for your own LLC as long as you comply with the essential requirements. But beyond that, there are certain sets of eligibility requirements that you must know. First, your physical address must be at the state where the LLC will be established. Second, you must be at least 18 years old or of legal age. Some additional requirements may occur in some states like Virginia wherein they require an attorney or part of the corporate’s management to be an agent.
How to register an LLC?
Whether you decide to be the registered agent for your own business or designate someone else, you must know how the LLC registration will proceed. First of all, make sure that your business name is correct and the words “Limited Liability Company” or “Limited Company” (or their abbreviations “LLC,” “L.L.C.,” “LC,” or “L.C.”) must be included in it. Secondly, fill out and submit the Articles of Organization form. This is where your business name, business purpose, principal office address, and the names of the initial members are addressed and noted, from which will be received by the registered agent. This step could also require you a fee from which may vary from state to state. For instance, the Utah LLC cost would be $70 while in Ohio is $99. The next steps will be the notice of publication which you must comply with, and the acquirement of further permits and licenses.
Conclusion
Considering yourself, or the collaborating LLC owners, to be the registered agent of your LLC is ideal as long as you are able to manage both the responsibilities of being a registered agent and business manager or owner.
