Appointing an individual to manage all the paperwork and legal actions instead of doing it yourself certainly eases everything. While forming an LLC/corporation in Delaware, it is necessary to elect Delaware registered agent. They are the representative of your business in lawsuits. Let’s talk about why a registered agent is necessary and what roles they play.
What is a Delaware Registered Agent?
A Delaware registered agent fulfils the responsibility of going through all legal documents, managing taxes and avoiding lawsuit activities. They strictly help in maintaining the reputation of the business in the
state. They act as your intermediary with the state. In addition, an entity agent is responsible for all the ongoing of the business. Every day they have to respond to legal officials and avoid conflicts of lawsuits.
An entity agent could be an individual or anyone who can professionally serve your company. While managing the workload of a new startup, they prove themselves as a reliable source. A registered agent is a reliable source that communicates with the state on behalf of the business.
Why is it Mandatory to Assign a Delaware Registered Agent?
In order to register your business in the state of Delaware, it is necessary to appoint a Delaware registered agent. Every business, either an LLC or a corporation, by law needs a registered agent. It is like a thumb rule that if you don’t elect a registered agent then you won’t be able to list your business with SOS. An entity agent delivers a good number of benefits to the business.
You can refer to an entity agent as a resident agent or statutory agent. They tackle service of process, compliance notices and tax notices. As an individual, they deal with all the legal ongoing for a firm. The cost of hiring a registered agent in Delaware is $50 to $300 per annum. It is worth spending such an amount as it will save so much of your time.
Can I be my Own Agent?
You can select anyone to be a registered agent of your LLC/corporation, even yourself. When you elect yourself to represent the company, ensure you are available for the times expected. You have to simultaneously juggle your time with business hours. When you appoint a friend, a family member, or a third party, make sure their age is above 18 years. You can focus on the work closely when you participate and enrol yourself as a registered agent. There are comebacks from the role but at the same time, there are setbacks as well.
Risks Of Beings Your Own Registered Agent
- You can’t skip business hours
- You have to address all legal documents on time
- Thorough verification of the notices
- You have to expose your identity in public in order to do business
- You have to do business in Delaware only and cannot expand
What is Expected From a Registered Agent?
A candidate who is appointed for the position of Delaware registered agent needs to fulfil certain expectations. They should be compulsorily able to meet the requirements that a company offers. Following is a list of requirements that a candidate should have while applying for the position.
- Must be a Delaware resident and above 18 years of age
- Should be available during business hours
- Must have a physical street address
- Specifically able to avoid legal thresholds
- Available in the company to receive all lawsuit notices
Who can be my DE Registered Agent?
Since you can appoint anyone to be your registered agent, you can appoint yourself as well. If you don’t wish to partake in the role, you can select a trustworthy individual for the position. A friend, family member or a third party who is selected should meet certain expected criteria. Moreover, if you still wish to appoint yourself as an agent, you might face some dropbacks.
What are the Rules to Appoint DE Registered Agent?
A Delaware registered agent represents the business and correspondingly forms its identity. To maintain the reputation of the business that you have to build, certain rules should be set.
- Only select a candidate with a Delaware street address
- Availability of the candidate to focus on legal activities of the business
- Should be flexible to share identity publically
- Available to notice the owner about the legal announcements
- Moreover, help the business to stay on top to meet the requirements of the state
How to Appoint a Registered Agent?
Once you have set up a Delaware registered agent, take further steps of registration. To appoint a registered agent in Delaware, you must fill out the certificate of formation. Without mentioning the registered agent in the certificate of formation, your business will not get into the list of SOS. Therefore, to fill up the form business owner has to visit the official website of Delaware SOS and download it. You can only share the form via mail.
- Registration Via Mail: To register an agent with SOS you have to fill out a hard copy of the form. You have to pay $90 and submit the copy to the Delaware secretary of state.
Do I Need a Consent of my Registered Agent?
A registered agent has to compulsorily sign a form to claim the position. The form of consent will include the security of a business that the candidate won’t leave the company halfway. Therefore, a hard copy of the form is necessary to file in the records.
A registered agent has to provide written security to the business in terms of one of its responsibilities. Hence, the proof is necessary to submit.
How to Get a Free Registered Agent?
Appointing a registered agent might cost a lot whereas appointing a company service may help your business. The services that third-party companies provide have undoubtedly a large impact on the new LLC/corporation. They handle every problem that arises while doing business in the state or nationwide. Let us go through the points about how exactly you can appoint a free registered agent.
How Does It Work?
There are certainly many LLC/corporation service companies that provide additional services to a business. They go through all the legal notices and compliance notices. In addition, the services that many companies provide help businesses grow. The third-party companies form a dashboard online for the business to check the ongoing. In conclusion, it is important to appoint a registered agent to subtract your workload. Prioritize to necessarily take the above-given terms while appointing an agent for your LLC/corporation.
Frequently Asked Questions
1. Can anyone apply for a position of a registered agent in Delaware?
Only candidates above the age of 18 and a resident of Delaware can apply for the position of registered agent.
2. Why does an LLC/corporation in Delaware require a registered agent?
By law, all the businesses require a registered agent to manage all the legal notices and sign them.
3. How much does a Delaware register agent cost per year?
A Delaware registered agent cost $50 to $300 per year.
4. Why is necessary for a Delaware registered agent to have a street address?
A Delaware registered agent should be available during business hours to receive government notice or legal notice. That's why the agent must have a street address to acquire the role.
Although, a registered agent you have chosen passed all the tests, make sure they meet all the requirements a state needs. In conclusion, the registered agent must be capable enough to conquer all issues of the business. They should be a reliable source for the LLC and its members.