Each stage of forming and operating a business entity is inextricably linked to constant interaction with the state. The first contact of an LLC in California with the state occurs when the Articles of Organization are filed. The second contact is when the license and permits are obtained, which allows the company to proceed with its operations. Regular reports, notifications, or approvals with the state are integral to the company’s very process. Given the high workload of business owners, these tasks can be delegated to a separate service or an individual. These are called registered agents (RAs).
In California, just like in any other state, a registered agent acts as an intermediary service to handle most of the paperwork between the company and the state.
Read on to learn more about these agents and find out why you need one to run your business, as well as when and how you can hire a registered agent in California.
A California registered agent is simply a person or an entity that accepts service of process, i.e. legal notice of a lawsuit, and other official paperwork on behalf of the company. In other words, it can be a person appointed to receive official documents addressed to a company.
A California LLC registered agent is an intermediary between government agencies and an LLC. In addition to documents from the government, a California agent for service of process may also receive correspondence from other companies or individuals.
Having an agent for service of process in California is mandatory for doing business in the state, set out to ensure that you can contact the company in a timely manner.
All data about the registered agent should be specified in the constituent documents. Otherwise, if during the registration of a limited liability company, the Secretary of State does not find the necessary information, the application will be rejected.
You might want to know what is the involvement of a registered agent in the activities of the company. Check the list below to find out more about RA’s involvement in the company.
According to state law, government correspondence is only delivered during business hours. This is a real problem for many business owners, who often spend a lot of time out of the office, or those whose work schedule differs from the usual. Having a registered agent solves this issue.
The need to do many things at once sometimes leads to absent-mindedness, which, in turn, can result in some papers going unattended. This will not happen if you hire a professional registered agent.
Undoubtedly, tax forms and annual reports are an important part of any company’s performance. Alas, it’s so easy to forget about them in the hectic pace of work. If such a mistake is made, certain legal consequences will not be long in coming and can be quite unpleasant.
This point is especially important for companies with online activities. Such companies often do not have a separate office and must therefore list their home address as their business address, which leads to confidentiality problems.
By law, all parties to a lawsuit must be properly notified to be able to participate and protect their interests. A registered agent will ensure that the owners of the LLC are given such notice.
Although the laws governing registered agents are quite liberal, not every person or company can take on such an important role. To meet California registered agent requirements, a candidate must:
In addition to the above, it’s important to remember that you can be your LLC’s registered agent in California as long as you have a physical address in the state. Alternatively, your friends or family members can be your LLC’s registered agents, too.
Thus, any person appointed to serve as a liaison between the company and the state can become California’s agent for service of process. It’s always up to you to decide whether it will be an individual or a professional organization. Obviously, both sides have their strengths and weaknesses, so think twice before making your choice.
Given that an agent of process in California has no special requirements for education, status, or profession, it can be almost anyone – a friend, partner, lawyer, accountant, family member, or even yourself. Anyone who meets the requirements and is willing to take on the responsibility will do.
When communicating with people close to you, it’s often quite difficult to separate business and personal relationships, so a contract with an organization that provides registered agent services in California is the best option for effectively running your business.
The variety of registered agent services is huge. You can hire either a local or a foreign company, as long as they are locally qualified in California.
Take care of your LLC’s prosperity in advance and choose a registered agent that you can trust.
Using high-quality services without having to pay expensive fees – this is what every startup dreams about. And this is exactly the kind of appealing opportunity that some business formation services offer to their clients.
There’s a wide variety of online platforms ready to assist you with the paperwork, as well as form and run your business in California. Here are just a few of the best:
All of the above-mentioned companies are experienced, reliable, and trusted in the US. They have excellent customer service and thousands of positive online reviews. In addition, their prices are quite affordable. If you choose one of these companies, an average incorporation price for a California LLC will be around $70, which is significantly less than what a regular lawyer can require.
Thus, hiring an online LLC formation service provider not only allows you to save money by keeping LLC registration costs to a minimum but also makes it a lot easier to keep your business running. You will no longer have to worry about the status of your documents or stress over meeting deadlines.
There are various reasons to change your agent for service of process:
Keep in mind that a registered agent should not inform an LLC of the resignation in advance. This can turn into a serious problem. If you do not find a suitable replacement within 30 days of the agent’s resignation, the legal consequences will be extremely unpleasant, up to administrative dissolution.
There are several ways to find a replacement for your registered agent:
There is no special document required for changing a registered agent – this means that you can send the Statement of Information (LLC-12) either online or by mail. Typically, all LLCs file the document once every two years, but you can re-submit a paper copy since the information in the document has to be changed.
We all know that when it comes to business, it can be unpredictable. You can run into various problems and sometimes, you just can’t find any solution on your own. But there’s a chance to ask the Secretary of State for help by using one of the suggested ways:
Also, Northwest Registered Agent, ZenBusiness, and other companies that offer their registered agent services have really caring customer service teams. Just call or email them to get a qualified response!