Most entrepreneurs are innovative individuals with creative minds, but they don’t have much of a business background, especially when it comes to forming an LLC. However, many entrepreneurs assume they have the where-with-all or intelligence to figure this out, and it ends up costing them dearly.
When it comes time for LLC registration, an entrepreneur’s entire life hangs on the balance of the application. While entrepreneurs could likely figure out the paperwork without a problem, it makes more sense to cut down on the risk of error and hire an LLC registration service.
Realistically, this makes a lot of sense. Once the LLC has been formed, the entrepreneur will likely hire an accountant to handle his or her payroll and tax needs. They’ll hire a lawyer for their legal concerns. By this logic, why would it not make sense to employ a registration service when submitting their LLC application? Below will highlight some of the reasons why an LLC registration service could be beneficial for a new company.
1) Registered Agent Services
One of the most significant reasons why LLC registration services could be beneficial to entrepreneurs is because they offer registered agent services to new businesses. When registering as an LLC, business owners must select a registered agent who is the “legal middleman” for all official government correspondence.
All legal documents and lawsuits will go to the registered agent. It is critical that the registered agent be a resident of the state who is at least 18 years of age, and who is at the address on file during regular business hours. It’s also crucial that business owners select someone they trust to be their registered agent.
For example, if the company were ever to be sued, notice of the lawsuit would be delivered to the registered agent. If the registered agent failed to provide this notice to the business owner, the owner would have no way of knowing the company was sued. This, in turn, would prevent the company from responding to the lawsuit in a timely fashion. A judge could then issue a default judgement against the company, meaning the company would lose the suit automatically and be forced to pay to the plaintiff without a chance to defend itself.
This issue is also compounded because businesses may need to register as an LLC in more than one state, and thus could be sued in multiple statues. How is a business owner in California supposed to be in Wyoming every day, where their business is registered as an LLC? Again, it’s crucial that new business owners choose a registered agent they can trust.
That’s where a third-party registration company comes in. These companies are well-versed in handling LLCs. They can provide a registered agent for a business in any state. The business owner can rest assured that the agent they are receiving is trustworthy and will professionally represent the company. If a new entrepreneur is struggling to find a registered agent, they should look no further than a third-party registration company.
2) Document Filing
LLC registration companies are also incredibly knowledgeable when it comes to filing LLC paperwork. Sure, entrepreneurs could take a risk and submit their LLC application on their own. But if their request were to be rejected, they would cost themselves considerable time and money.
Registration services can read through an LLC application to ensure it is compliant with state regulations. If not, they can correct any errors so that the application is suitable. For entrepreneurs who do not have much experience starting an LLC, this could give them incredible peace of mind.
Similarly, once you do obtain LLC status, registration companies will ensure that a company remains in good standing wherever it is operating. One aspect of managing a business that many new business owners often overlook is securing business licenses. Unfortunately, many new business owners believe that once they have registered as an LLC, their job is complete.
If a company is found to be conducting business unlawfully in an area, they would face severe fines or punishments. Registration services will help ensure that company has filed all of the necessary paperwork so that they remain in good standing with the state in which they’re conducting business.
Even if a company has been in operation for years, it’s crucial that they remain compliant with state regulations. Some LLC owners realize after the fact that they may not have been compliant with state regulations and are worried about the repercussions they may one day face down the road.
Again, LLC registration services can help solve this problem. They’ll look at a company’s past filings, and work to get them caught up if they have not filed paperwork properly over the past couple years. Additionally, if they notice a mistake on old submissions, they will submit an amendment on behalf of the company, essentially admitting to the state that they made a mistake and are making efforts for it to be corrected.
4) Future Business Growth
As a business grows, owners don’t have time to worry about mundane paperwork. They have much bigger things of which to worry. However, as a company begins to expand across state lines, the paperwork will start to pile up more and more. But, with the help of a registration service, this does not have to be a problem.
When filing in a foreign state, a registration service company can prepare the required paperwork and provide the required registered agent in the foreign state. They can also look up the database of business names in that given state to ensure that the company name is available for use. Similarly, if a business owner ever wishes to change the company name, LLC registration services can assist with this as well. To do so requires a filing with the Secretary of State’s office that is separate from the annual report that a company must file each year.
5) Hire A Trusted LLC Registration Service Today
LLC registration services can be extremely beneficial for new business owners who do not have much legal experience and would rather focus on growing their business. Business owners should work with a LLC registration service who they can trust.
Business Filing Section