A business can take various forms. A smaller-scale one is usually in sole proprietorship or partnership. But as it expands, the owners must increase the capitalization to sustain growth. With that, they may dissolve it and become an actual corporation. Interests and liabilities are divided among the owners. While many companies go public to raise capital, others prefer to remain private. In the US, Limited Liability Companies are common due to their flexibility. Hence, growing demand for registered LLC agents has been observed over the years.
A Brief Overview of Delaware LLCs
More than 30% of businesses in the US are composed of Limited Liability Companies (LLCs). They comprise over 70% of all partnership returns. In recent years, they have grown to 13 million. This conveys the preference for private limited companies.
In the state of Delaware, LLCs had an 8.8% average annual growth in 2016-2020, while corporations had 13.6%. Corporation or LLC formations accounted for 72% of total business entity formations. Given this, it makes sense that the state is considered a domicile of choice for many business owners. Despite the pandemic, doing business there was not hampered or disrupted.
Registered Agents in Delaware: A Quick Overview
LLC registered agents provide business formation or incorporation services. They receive service of process, government correspondence, and compliance documents. LLCs or corporations appoint them to act on their behalf. The Delaware laws require a registered agent upon the formation of a business. A registered agent office must be added upon filing the Articles of Organization. It will be filed with the Delaware secretary of state or other appropriate agencies. Note that the agent’s office must be identical to the corporation’s registered office.
Purpose of a Registered Agent
A registered agent helps an LLC in maintaining effective corporate compliance. Primarily it is the one receiving official mail for an LLC. It also acts to inform LLCs of legal notices and send reminders for annual report filings. In essence, it is a gatekeeper for LLCs so they can take appropriate action for all matters easily.
Whether it’s a small or large-scale business, a registered agent receives the following on an LLC’s behalf:
Tax forms and tax report
Official government correspondence, such as annual reports and quarterly reports
Summons (Service of Process)-Notice of a lawsuit
Moreover, a Delaware LLC formation registered agent provides all the necessary information to create an LLC. He identifies the requirements, such as tax forms and a certificate of formation. He assists in assessing business or franchise taxes. He also reviews the legalities of the overall operations. Since he is usually on the front line, he can think of important matters during the formation process.
Importance of Delaware Registered Agent for Forming an LLC
Designating a Delaware registered agent for your LLC or corporation offers many benefits. The service they offer help you maintain the following:
Compliance with the Law
Peace of Mind
Compliance with the Law
With a Delaware LLC registered agent, you will have constant document filing reminders. Hence, your business will remain updated and compliant with State law. They also keep certified copies of corporate documents. So, in case of theft or unforeseen circumstances, you will have a backup of all documents.
Peace of Mind
Registered agents can help you focus your time, energy, and attention on operations. So, growing your business will become your top priority. They take care of tax forms and other essential documents. Hence, you are assured that everything is organized and updated.
Given all these, you will maintain a work-life balance. Business matters will not overtake your home and social life. Moreover, if your business faces a problem, they can offer guidance and support.
Designated registered agents focus on handling documents. They are also required to remind you of filings and other government notifications. They have to work from 8:00 A.M. to 5:00 P.M. on business days, allowing you to choose your normal business hours. With that, you can focus on your business instead of frequently checking deadlines. You will always be available during business hours.
Registered agents should be residents of the state where your business is established. If you plan to set up a physical office in multiple states, you must have a registered agent for every state. But with a national registered agent, you can form an LLC in any state.
Upon business formation or incorporation, your registered agent’s address will be listed on the public record. Hence, your personal or company street address will remain private. Registered agents are essential if you handle your business at home. They prevent you from receiving a lawsuit in person. You will not receive a summon at home or at your business address. Hence, you are less prone to receiving unsolicited mails.
What Registered Agent Services Should I Look for?
A registered agent provides business services and several other advantages. But, you may still be wondering how to choose a registered agent. You must consider a legitimate office in the state of your LLC. From there, look for a registered LLC agent with the following features:
Compliance management: constant reminders for report filings and other deadlines for business entities.
Document management: local scanning of all legal documents to access them from your online business account.
Availability: a reliable customer service team who can respond to queries by phone or online regarding your business.
Thorough coverage: the ability to provide registered agent services in all 50 states.
Let doola deal with your worries in starting your company. We offer different packages that will surely fit your needs. Contact us today to schedule an appointment.
Do You Need a Delaware Registered Agent for Forming an LLC?
If you plan to put up an LLC, hire an LLC Delaware registered agent from doola. We have reliable registered LLC agents that provide business and legal services. For more information, reach out and seek assistance from us today.
FAQs About Delaware Registered Agents
Can I be my own registered agent?
Yes, but you will have to list your personal or office address on public record. You need to be available at your listed address during office hours.
How do you select a registered agent?
You may wish to appoint yourself or reach out to companies that offer formation services. As long as the agent has a physical address and is also a resident of the state of your business, you can appoint them. Just submit a form (Appointment of a registered agent) to the appropriate office.
What is a ‘consent to appointment’?
This form of consent is used by the party that will act as the registered agent for an LLC. A person or a business entity must consent to the appointment in written form.
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