Forming an LLC can be great for your business. Many major companies are doing it such as McDonalds, Chrysler, Cargill and Kaiser. Having an LLC can bring many advantages to your company such as flexible taxes, a strong reputation, separate assets and additional help. As part of the LLC process, an important and legal step is to hire a registered agent as part of the formation process. Here are some tips about being a self registered agent or hiring a self registered agent.
What are the requirements to be a self registered agent?
In order to be a self registered agent you need to be living in the state of Delaware, be 18 and over, have a physical address in Delaware and be present at all times at your business. You can become a self registered agent, or your friend or family member can be too.
What is the benefit of being a self registered agent?
In a way you get to save money because you are not hiring an agent service and paying for a package annually. If you have good time keeping you can meet your deadlines on time without having to face the consequences of paying any penalties or fines to the federal or local government. You would always have first hand responsibility of any potential lawsuits or legal paperwork that needs to be completed or dealt with.
What are the disadvantages of being a self registered agent?
You would have to be present at your business at all times, without having a flexible schedule. The reason for this is because you cannot miss out on any important deliveries for paperwork. If you do get served a lawsuit, there is a high chance that it would be done in front of your friends and family. Another disadvantage is that you would have a load of paperwork stacked up and it can be hard to manage everything evenly.
What is the process of hiring a Delaware registered agent?
When it comes to the filing process for setting up an LLC, you need to appoint a registered agent. In Delaware it costs $90 as a fee to fill out the form which is called ‘Certificate of Formation’ for a registered agent and then mail it to the Secretary of state of Delaware. You can learn more on how to apply online. It is an easy procedure and it needs to be done even if you appoint yourself as a self registered agent.
If you are an experienced business owner who is tech savvy and feels confident with time management, then being a self registered agent is definitely beneficial for you. However, if you are someone who relies on a flexible schedule and may have the feeling of anxiety of everything building up at once, then you should hire a registered agent. A registered agent can tackle the responsibility of handling all paperwork, whilst organising them in a neat system for you to not worry about. Not only that, but if you hire a registered agent, you wouldn’t need to be present at all times in order to receive deliveries for paperwork. You’d also get the extra help and advice from a professional who can help you with accounting and even with attorneys. Whereas if you were to be a self registered agent, you would need to go the extra mile in order to conduct research and connect with accountants and attorneys in order to help maintain your business. However, making this decision is down to you as a business owner and there are many things to consider; such as the costs that you can afford, the organisation you have within the business and if you can handle everything by yourself. Being a self registered agent can have its upsides and downsides, just like any other factor when running a business.