According to NOLO, "a express liability company, commonly chosen an 'LLC,' is a business organization structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation." In this article nosotros'll discuss how to register your small business concern as an LLC, what an LLC Registered Agent is, how to become a registered amanuensis for an LLC, and the benefits and drawbacks of beingness your own LLC's registered agent.

How to become a registered agent for an LLC. An LLC registered agent plays an important role in separating business and personal assets.

The advantages of registering your small business as an LLC are that it reduces personal liability and can provide y'all and your employees with a number of tax deductions. Since the highest pct of tax audits are done on people who file a Schedule C—that is, who are challenge self-employment income and deductions—an LLC can protect y'all from that complication every bit well.

Forming an LLC isn't equally difficult as many people think. There are five basic steps:

  • Select a name for your business organisation that no ane has used earlier.
  • File manufactures of organisation and pay the filing fee.
  • Create an operating agreement that says how the business will be run.
  • Publish a notice of your intent to class the LLC.
  • Get the licenses and permits your business needs to run.

You as well demand to designate a registered agent for the LLC. Let's have a look at what an LLC's registered amanuensis does and whether or not yous, as the owner of the business, tin can (or should) exist the registered agent for your own business concern.

Why Practice I Need a Registered Agent For My LLC?

When you're a sole proprietor, in that location's no distinction between yous and the business and likewise no legal separation between personal and business assets. 1 of the principal reasons to grade an LLC is to create a boundary that separates the two realms and protects your personal avails.

The registered amanuensis plays an important role in maintaining this boundary of separation. This reliable tertiary-party maintains a physical address in the state where you lot formed the LLC and is authorized to receive all the of import and frequently time-sensitive documents that come to your business, including service process notifications, tax forms, and legal documents. This means that y'all won't miss deadlines should you go on vacation or otherwise be absent. An LLC'southward registered agent will likewise maintain an accurate record of all the information relevant to your business organisation'southward operation and then that y'all can concentrate on running and growing your company.

Most states require LLC'south to have a registered agent, but fifty-fifty if your state doesn't, it's still a adept thought. Non having a registered agent can affect your organization because it's quite fourth dimension consuming to keep track of legislative changes, franchise taxation notices, annual reports, etc. And if yous mess up, the penalties may be the revocation of your LLC'south license and fines.

Can a Small Business Possessor Be Their Own Registered Amanuensis?

It is not advisable to be your own LLC's registered agent

At that place is no law preventing you from being your LLC'south registered agent. If you carry business in the same country where you fix the LLC and piece of work during regular business hours at the address on record, y'all could practice it. Yet, information technology is not advisable. Here'south why:

  • You might non exist in that location when an of import document comes in. Say you are running a family inn. Well-nigh of the fourth dimension you are on the property, overseeing the concern end and greeting all the guests, but what if a legal document arrives while y'all are running errands in town? What if you're on vacation and end up missing the deadline on a fourth dimension-sensitive legal certificate? A third-party agent's job is to be there (at their office, not your inn) every solar day for this reason.
  • You won't be embarrassed if you're served legal documents in front of your clients. A registered amanuensis saves y'all the humiliation of looking like a deadbeat in forepart of clients and employees and can assist to preserve the reputation of your business.
  • You won't lose a lawsuit by default. Y'all tin can lose everything on a technicality if legal paperwork isn't served properly. Having a registered agent is your first and best line of defense confronting having that happen.
  • You might want to operate your business in more one state. Y'all need to accept a registered agent in each state where your business organisation operates. Once y'all determine to expand your functioning, having tertiary-party agents who know the ins and outs of other jurisdictions volition salvage you many headaches!
  • You might want to alter your accost. Every fourth dimension you move your concern' location, you lot'll need to file with the state and pay whatsoever necessary fees to make the modify official and so that your address remains a matter of public record.
  • You hate receiving junk mail. The registered agent's address must be in the public record, meaning that every advertiser and company can add you to their listing. Having a tertiary-party agent frees you from the inevitable onslaught of special offers and services. As an individual, you lot are complimentary to block those pesky offers by having a private address.
  • You don't piece of work regular business hours. If you serve as your ain registered agent, you demand to be in the office when the mail carrier and courier services make their rounds. That lonely can identify a meaning burden on you. Not just volition y'all never be able to take off a few days, just you won't even be able to take the morning or afternoon off.

Hiring a Registered Agent Service

Hiring a third-political party registered amanuensis for an LLC facilitates the smooth operation of your business and allows you the peace of heed of knowing that a reliable person is always there to receive your documents. A reliable registered amanuensis besides helps to maintain your LLC'southward reputation and credibility. Most importantly, though, they give you the freedom to run your business on the get.

Now that you have a better thought of what a registered agent for an LLC is, and what they can do for your business, you can aggrandize your business organisation with conviction. For more small business advice from the best icebreaker questions for interviews, to the challenges facing today's entrepreneurs, check out our blog!

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