<\/span><\/span> <\/span>Entity Formation FAQ's<\/span>
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What is a Registered Agent?<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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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.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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Why do I need a Registered Agent?<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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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.<\/p>
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.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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What does a Registered Agent do?<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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A registered agent accepts tax and legal documents on behalf of your business, making sure you don’t miss important information regarding tax payments, lawsuits, or judgments involving your business; a registered agent may or may not have a role in the operation of the business itself.<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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Can you be your own Registered Agent?<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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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.<\/p>
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.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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What are the Benefits of Having a Registered Agent?<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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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.<\/p>
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.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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What if I Don\u2019t Designate a Registered Agent?<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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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.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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Choosing a Business Structure<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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When you start a business, you must decide whether you\u2019ll operate as a sole proprietorship, limited liability company or corporation. An individual or husband and wife can operate as a sole proprietorship.<\/p>
This is the simplest type of business structure and you don\u2019t need to file any paperwork to set one up. However, sole proprietors have no protection from liability for the business\u2019s debts and obligations.<\/p>
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\u2019s obligations.<\/p>
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.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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Deciding Where to Form Your Business<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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You\u2019ll form an LLC or corporation by filing paperwork with the state. For most small businesses, it\u2019s easy to file formation documents in the state where you\u2019re located. By doing this, you\u2019ll 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\u2019s own filing and renewal fees.<\/p>
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.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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Choosing a Name<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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It\u2019s worth taking some time to choose a unique name for your business. A unique name:\u00a0<\/p>
Helps you market your business<\/li>
Minimizes the chance that a similarly named business will accuse you of trademark infringement<\/li>
Increases the chance that you\u2019ll be able to get a domain name that matches your business name<\/li>
Complies with state law requirements that corporation or LLC names be different than all other entity names registered in your state.<\/li><\/ul>
Once you have a name in mind, you can conduct a Google search to see if any similarly named<\/p>
businesses come up. You can also search trademarked names at the U.S. Patent and Trademark<\/p>
Office website, and most states allow you to search registered business names online.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>
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Setting up your Website<\/div>\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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To get your website up and running, you\u2019ll need to purchase web hosting, which is typically offered by the same companies that provide domain registration.<\/p>
Hosting gives your website a place to live on the Internet. It\u2019s possible to set up a website yourself, but unless you\u2019re a designer or Web developer, you can expect a pretty steep learning curve.<\/p>
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.<\/p>
Once you\u2019ve chosen a name and business structure, filed paperwork with the state and set up your website, you\u2019re ready to get going with your business.<\/p>
Remember that the Internet is a busy place and you can\u2019t sit back and wait for customers to come to you.<\/p>
Look for ways to actively promote your business through online advertising, social media and old-fashioned word-of-mouth.<\/p><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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