Business

How to use a registered agent for LLC establishment

registered agent for LLC

This guide outlines the aspects of a registered agent for LLC establishment, and the benefits of using one when you set up your company.

A registered agent can be either a person or a registered agent service company that you designate to be your legal point of contact for all official documents related to your new business. The agent will receive all the documents and ensure they reach your business and in a timely manner. This can prevent all kinds of legal problems when you are busy with the other tasks involved in turning your idea into a business and setting up your company– and ensure things don’t slip through the cracks and get overlooked.

The most common choice to use a registered agent for establishing your company as an LLC.A registered agent for LLCestablishment -whether an indiviual person or an agency will be a specialist in the LLC field, and be well versed and knowledgeable about all the processes, and the time limits for each.

Registered agent, resident agent, statutory agent: what’s the difference?

There is really not much difference… they are terms used in some different states for largely the same thing, with some legal fine points. Some states use the term ‘registerred agent’ to emphasize that the agent’s identity and address are registered with the state. Where the term ‘resident agent’ is used, it generally means that your designated agent must be a resident of that state. If you come across the term ‘statutory agent’ it generally means that the state requires the role of the agent by a statute.

By the way, another term you might come across is ‘agent for service of process’ which pretty much means what it says: the agent in this case is focused on dealing with the service of process. Read this full guide for using a registered agent.

Why use a registered agent for LLC establishment

There are some special features involved in establishing an LLC, and it can be somewhat complicated. The contract can at its most simple definition be understood as a set of articles of organization. This document must also contain some information in order to successfully submit it to the Secretary of State of the respective state.

The name, address and details for the purpose of the company, as well as information on the founding members of the LLC, must also be provided here. If a registered agent is to be involved, their name and address must also be given.

If necessary, you also have to submit an LLC operating agreement, which defines the rights and obligations of the members of the LLC. This document also regulates the management principles on which decisions are based.

Even with an LLC, many states expect an initial report to be received within a certain period of time. In Washington state, for example, this is provided within a period of 120 days.

The founding agreement of a corporation is called Articles of Incorporation. The shareholders of the corporation to be founded determine the framework conditions for the corporation. Among other things, the name and address of the company as well as the name and address of its founders are of course important.

The purpose of the company must also be stated. Information on the type, number and value of the holdings in the corporation is also relevant. As a rule, this refers to shares that the company issues to shareholders or that are issued on the stock exchange.

In order to establish a corporation in the USA, its founders submit the Articles of Incorporation to the Secretary of State inthe state in which the incorporation is to take place. Approval for the establishment is then granted by issuing the Certificate of Incorporation, which is filed with the Securities and Exchange Commission (SEC).

LLC vs incorporation: explained

There are essentially two legal forms: LLC and INC. The LLC is the simplest form and costs between $20 and $75 to set up, depending on the state. There is one essential advantage with the LLC – one is excluded from liability. Because LLC stands for Limited Liability Company — a company with limited liability. Therefore, the LLC is also preferred by many small businesses. When it comes to taxing the LLC, it is also relatively simple: the earnings of the LLC are simply transferred to the person. That is, as soon as the LLC has income, it is assigned to the shareholders.

The INC., abbreviation for Incorporation, also protects the shareholders from liability. However, in the case of an Incorporation, the company itself is taxed. So the Incorporation can earn as much as it wants, the shareholders themselves are not taxed on the basis of these earnings.

Only when you pay out the money (called dividend payout) will you be asked to pay out – then a dividend tax is due. However, this also makes it clear that there is double taxation. After all, Inc. pays a tax itself, and then another tax is payable on the distribution.

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