How Do I Prepare To Meet with a Business Lawyer?

How Do I Prepare To Meet with a Business Lawyer?

Businesses are governed by laws and regulations that affect nearly every aspect of their operation. From formation, hiring, and firing, to drafting contracts, resolving disputes, and dissolving or selling the company, there are numerous legal matters that arise during the lifetime of a business. As a small business owner, you are adept at handling challenges. […]

How to Resolve Deadlocks in Your LLC

How to Resolve Deadlocks in Your LLC

Membership in a limited liability company (LLC) may come with voting rights. Member voting rights are addressed in the LLC operating agreement, which typically provides that LLC members must vote on several issues that are material to the continuance of the business. A unanimous or majority vote may be required depending upon the nature of […]

Why You Might Want to Hire Someone to Be Your Registered Agent

If your business is registered with the state, you are required to name a registered agent at the time of registration or incorporation. A registered agent is the person who receives legal and tax documents on behalf of your business. You or other people in your business can serve as the registered agent, but doing so raises a few potential issues. To avoid those issues, you can hire an attorney or company to serve as your registered agent. Registered agent services are inexpensive and can provide an added layer of professionalism. A registered agent is required in every state where your business operates for as long as it is in operation. You can change your registered agent at any time. What Does a Registered Agent Do? A registered agent acts as an official point of contact for a business. Agents receive important correspondence sent to the business, such as government compliance notices, tax documents from the state, and legal notices (e.g., a notice of legal action against the company or a subpoena). State laws require an incorporated or registered business to name a publicly accessible agent to receive such correspondence. Depending on the state, a registered agent may also be known as a statutory agent or an agent for service of process. Does My Business Need a Registered Agent? There are several different business structures you can choose for your business, including a sole proprietorship, a partnership, a corporation, and a limited liability company (LLC). Each type is categorized as either a common law entity or a statutory entity. You are not required to file any paperwork with the state for common law entities. Sole proprietorships and general partnerships are common law business entities. You do not need a registered agent for them. Statutory entities require formal state registration. You have to file documents with the state, disclose certain information about your business, and name a registered agent. Corporations, LLCs, limited partnerships, and limited liability partnerships are statutory business entities. What Are the Requirements for a Registered Agent? While every state requires a statutory business entity to have a registered agent, the requirements for an agent vary by state. In general, most states require a registered agent to meet the following conditions: ● Be a resident of the state where the business is registered and be at least eighteen years of age (if the agent is an individual) ● Be registered in the same state where the business is registered (if the agent is a company) ● Have a physical address (i.e., not a PO box) in the state where the business is registered ● Be available during regular business hours to receive documents Ensure that you understand the registered agent rules in every state where your business operates (note that what constitutes doing business in a specific state can vary). Noncompliance with state registered agent laws carries consequences. For starters, you may not be able to register or incorporate your business without a qualified agent. If you fail to maintain a registered agent in accordance with state laws, the state could assess fees, penalties, and even dissolve your business. In some states, the owners of LLCs and corporations not in good standing with the state can lose liability protection. More practically, you need an agent who can properly do the job so that you are up to date on notices. If your agent is derelict in their duties, you may not receive notice of a lawsuit against the company or may miss out on a tax document that demands immediate attention. Can I Act as a Registered Agent for My Business? Anyone can be a registered agent for your business, as long as they meet the legal criteria. This includes you and other members of your business, such as business partners, corporate officers, and employees. It could also be a trusted person outside your business. However, your business cannot serve as its own registered agent. It must be an individual from the business or a third-party individual or service provider you hire to serve as your agent. What Are the Benefits of Hiring a Registered Agent? At start-up, it may be faster, easier, and cheaper to just name yourself or another member of the company as its registered agent. But there are some reasons why you might want to use a third-party registered agent: ● Time and effort: Small business owners have a lot on their plates. Receiving company mail may not seem like a big investment of your time, but if you are frequently out of the office on business trips and meeting with clients, you may not be around to receive time-sensitive documents. A registered agent can make sure that any official correspondence is opened right away and made available to you for immediate response. ● Compliance: A professional registered agent does more than review the mail for you. They can implement a system that keeps your documents and deadlines organized. For example, an agent can create an online calendar that notifies you of upcoming due dates, like tax filings and annual reports. They can also create copies of documents in the cloud that you can access anytime and anywhere. ● Privacy: Remember that a registered agent’s address must be publicly accessible. That means that if you are the registered agent, your personal address becomes a matter of public record. This might not matter as much if your business is not home-based, but it could still make your address available to spammers. In addition, some legal notices are delivered by law enforcement officers. Having your agent at a separate location can avoid any awkward interactions in front of clients. ● Low cost: Hiring a registered agent usually costs only a few hundred dollars per year at most. Time is money, and the time you save by outsourcing this service—not to mention the noncompliance risks you could avoid by having a dedicated agent—may be well worth it. In addition, the fees you pay to a registered agent are a tax-deductible business expense. Thinking about hiring a registered agent? Do you have questions about whether your business qualifies as doing business in the state and need an agent here? Our law office can act not only as your registered agent but also as a trusted, full-service business adviser. Contact us today to schedule an appointment.

If your business is registered with the state, you are required to name a registered agent at the time of registration or incorporation. A registered agent is the person who receives legal and tax documents on behalf of your business. You or other people in your business can serve as the registered agent, but doing […]

How to Conduct an Effective Employee Performance Review

Estate Planning Attorney

Employee performance reviews can be stressful for workers and managers alike. Now more than ever, with workers quitting their jobs in droves as part of the “The Great Resignation,” managers may be hesitant to provide direct, constructive criticism that could be perceived as overly harsh. Employees, in fact, widely agree that most performance reviews do […]

How to Set Up Your Board of Directors

How to Set Up Your Board of Directors

You might think that a board of directors is something that only big companies have, but all S corporations and C corporations—even small businesses—are legally required to have boards of directors. Specific rules for the board of directors are established in the corporate bylaws and other corporate documents. Some requirements for boards of directors, including […]

What Is Reverse Veil Piercing and How Should You Protect Against It?

What Is Reverse Veil Piercing and How Should You Protect Against It?

Normally, limited liability business entities, which include corporations and limited liability companies (LLCs), prevent the entity’s creditors from going after an owner’s personal assets to satisfy their claims. But in rare circumstances, courts allow piercing of the corporate veil. When this occurs, creditors who win a legal judgment against the corporation or LLC may target […]

Common Considerations for Using a Liability Waiver in Your Business

Common Considerations for Using a Liability Waiver in Your Business

Exposure to lawsuits involving injury and loss claims is among the biggest risks that businesses face. Although liability waivers are most commonly used by businesses that offer inherently dangerous activities, such as ski resorts, amusement parks, and gyms, they can be used whenever a business seeks to limit the claims or damages that a visitor […]

How to Pay Yourself When You Own an LLC

How to Pay Yourself When You Own an LLC

One significant advantage of organizing your business as a limited liability company (LLC) is the flexibility it affords. The Internal Revenue Service (IRS) allows LLC owners to choose how their business will be taxed. As an LLC owner, you can be taxed as a sole proprietorship (if you are the LLC’s  sole member), a partnership […]

Using a Deferred Compensation Agreement in Your Business

Using a Deferred Compensation Agreement in Your Business

The war for talent is heating up. A record number of workers have quit their jobs this year, creating a massive problem for employers. While higher pay can help get new workers in the door of your business, wages alone may not be enough to keep them there. Employers are getting creative in finding ways […]