A registered agent is a responsible third- party who is registered in the same state in which a business entity was established and who is designated to receive service of process notices, correspondence from the Secretary of State, and other official government notifications, usually tax forms and notice of lawsuits, on behalf of the LLC.
If you do not have a physical location in the state in which your business is registered, you must select a registered agent to accept documents on your behalf.
The state in which your business is registered needs to know it has a contact person for your business within the state at all times; accordingly, PO boxes are not acceptable addresses for registered agents.
While it is usually legally possible to serve as your own registered agent, it is advisable to designate a third-party to perform this important role.
By having someone else responsible for the receipt of tax and legal documents, you can have the peace of mind that someone will always be available to claim such important information, which means you can leave the office freely, go on vacation, etc., without having to worry about missing any deliveries.
Besides not worrying about missing important documents, having a registered agent also means that you will not have to accept potentially embarrassing legal and tax documents in front of clients.
Another advantage is that, as your registered agents your address will remain the same, you can easily change your business location without necessarily having to file more paperwork to change your address with the state for each and every move.
A business that does not select a registered agent may risk falling out of “good standing” with the state in which it is registered. Penalties can include license revocation, fines, and the inability to enter into legal contracts and/or gain access to the state court system. Moreover, reinstatement proceedings could include further monetary, civil, and possibly criminal sanctions as well.
When you start a business, you must decide whether you’ll operate as a sole proprietorship, limited liability company or corporation. An individual or husband and wife can operate as a sole proprietorship.
This is the simplest type of business structure and you don’t need to file any paperwork to set one up. However, sole proprietors have no protection from liability for the business’s debts and obligations.
For this reason, many people who are starting a business choose to form a limited liability entity such as a limited liability company or a corporation. The owners of these types of business entities are typically not personally liable for the business’s obligations.
An LLC is generally more flexible and involves less record-keeping and reporting than a corporation. EZ Entity recommends an LLC structure in the majority of new business setups.
You’ll form an LLC or corporation by filing paperwork with the state. For most small businesses, it’s easy to file formation documents in the state where you’re located. By doing this, you’ll avoid the added costs of registering to do business in your home state and hiring an out-of- state registered agent. However, each State has it’s own filing and renewal fees.
EZ Entity recommends registering your business in Utah due to the low State filing fees. Additionally, the renewal fee in Utah is $20 annually. If you do not reside in the state that you are registering your business, you can use a Registered Agent to accept tax and legal documents on behalf of your business.
It’s worth taking some time to choose a unique name for your business. A unique name:
Once you have a name in mind, you can conduct a Google search to see if any similarly named
businesses come up. You can also search trademarked names at the U.S. Patent and Trademark
Office website, and most states allow you to search registered business names online.
To get your website up and running, you’ll need to purchase web hosting, which is typically offered by the same companies that provide domain registration.
Hosting gives your website a place to live on the Internet. It’s possible to set up a website yourself, but unless you’re a designer or Web developer, you can expect a pretty steep learning curve.
If you have the budget, consider hiring a professional to help you with some or all of the following: configuring the site to look the way you want and include the features you need; creating and inserting a logo; optimizing the site for search engines; and creating text and images.
Once you’ve chosen a name and business structure, filed paperwork with the state and set up your website, you’re ready to get going with your business.
Remember that the Internet is a busy place and you can’t sit back and wait for customers to come to you.
Look for ways to actively promote your business through online advertising, social media and old-fashioned word-of-mouth.
