Nevada LLC Agent: Its Benefits and Why Do You Need One?
What do we mean by LLC agent? LLC or Limited Liability Company Agent is a person or a business company that legally accepts and receives a service of process and official mails on behalf of a company that has appointed or hired them. They can handle other types of business entities, not only LLC. These registered agents can be most helpful in a Limited Liability Company (LLC) type of business organization.
Read more about how a registered agent for an LLC can help a business entity. Let us identify the types of business entities that the registered agent can handle. The various types of business structures, including sole ownership, cooperatives, corporations, and partnerships, have for-profit structures, but some are of nonprofit type structure.
Type of Business Organizations
Let us discuss the types of organizations that a registered agent can render the service. The business owners must decide how their business structure will be. All businesses should follow some standard legal system that defines every aspect of the participants in the subject of ownership , responsibility, control, rights and procedures, accountability, and financial structure.
A corporation is a business organization that can operate separately from its owners. The corporation is just like an artificial person that is working differently from its owners. Shareholders are what they usually call the owners of this organization. These shareholders elect its board of directors consisting of individuals to manage the corporation. The board of directors may be internal or external to the corporation. The board of directors will elect the Chief Executive Officer, the highest-ranking officer of the company. A CEO has several responsibilities. Some of their duties include managing operations, making critically important decisions, liaison between the board members and its representative.
Types of Corporations
C Type Corporation
This type of corporation requires a high amount of reporting, documentation, and processes. Corporations are taxed separately from the individual shareholder. C-corporation has an advantage in producing capital by selling stocks.
S Type Corporation
This type of corporation has tax benefits and liability protection for its shareholders. This corporation can have as many as 75 shareholders that attract more capital. Filing an article of incorporation is a must for this type of corporation. Usually, a board meeting’s purpose is to select its board member.
A partnership is a business organization type that is owned and operated by two or more people. The two types of partnership are the general form and the limited form of collaboration. For general partnership, the owners are responsible for the business’s debts or what are called liabilities. The general partnership owns and operates the business, so they are liable for the debts. For a limited partnership (LP), the Owner who is not controlling the company is an investor and is not responsible for debts. The limited partnership is more complex to deal with due to complex accounting and legal services. A general partnership is simpler and more accessible in tax benefits.
Limited Liability Company
A Limited Liability Company (LLC) is a type of business organization that is advantageous to the owners, shareholders, partners, and investors. They can limit their liability to the company, thereby protecting their assets. The advantage of LLCs is that there is no limit in inviting the number of shareholders. The shareholder can also participate in the operation of the business separate from the role of a shareholder. This business type has various complexities since it is a new type of business structure recently introduced into the current business organization. Since this type has its complexities, some flexibilities need a registered agent who knows this business structure.
Registration Requirements of LLCs in Nevada
For an LLC type of business structure, there are complexities and flexibilities, but starting a company of this type can be advantageous to the business in the State of Nevada. Nevada is the number one choice in taxes compared to the other United States of America. Nevada is attracting companies to start their business. Nevada does not require minimum corporate capital and does not have a minimum number of investors. All you need is to sign the Nevada article of organization and submit it online. There are tax benefits when you pass the requirements, which are:
- The corporation must be a resident and must have a physical presence in the State.
- Must have a proof of business address
- Must have a guarantee of a local state telephone number
- Must have a State-based bank account.
Requirements of Corporate Formalities in Nevada
For a state to maintain an LLC status in Neva, annual requirements are essential. These are requirements on record to protect the shareholders from any liabilities. The requirements should have the following details:
- Corporate bylaws
- Annual Yearbook containing the ff:
- Annual Director and list of officers, members
- Annual shareholder meetings, attendees, and annual report
- Corporate minutes and records
- Corporate transactions entered
- Stockholder and corporate funds
Advantages in Forming an LLC in Nevada
Starting an LLC in Nevada has several advantages. Some of it includes:
- The Owner’s and board members’ identities are not released on public records, which protects them from possibilities of use cases. Likewise, the Board Members and shareholders lists are not provided to the taxation bureau. The tax of a sole proprietor type of company is higher than LLC’s.
- All states legally honor the registered business entity awarded by Nevada.
- An LLC is capable of having investors who are resident or nonresident in that State.
- Annual meetings are necessary. Teleconference meetings are acceptable for members that are not residents and for medical safety measures such as the covid-19 pandemic.
- The State does not require asset lists of the company. It is the option of the company to keep their asset lists for their use.
Disadvantage of an LLC in Nevada
Limited Liability Corporation has a disadvantage: If the LLC is a single proprietorship, there is an automatic dissolution, but if it has multiple owners, then abolition will not happen. For better decision-making, refer this issue to a registered agent.
The second disadvantage of an LLC is that all income may be subject to self-employment taxes as to payroll. In this case, the individual may file individually.
Advantages of Appointing a Third Party LLC Registered Agent
With the complex requirements of corporations and LLCs, it is beneficial to appoint a registered agent resident to the State and is familiar and expert on this LLC matters. With this, let us identify the advantages of selecting one. Failing to maintain the legal LLC status within the State may result in unnecessary extra expenses.
The registered agent is always open during regular business hours. It is essential to do so and accept your service of process.
The resident address needed for registration of LLC is from the agent and can be an added privacy protection.
The resident agent is available for all the regular office hours ensuring that your tax forms are up to date on filing. The LLC may miss out on annual report dates that the State needs.
Thus, having a third-party registered agent is a must to avoid missing out on meaningful business matters.
Several cost savings on hiring a registered agent are there against their LLC resident agent. One cost is office space from the company. They have to allocate some space on the company premises. Think about all the cabinets, chairs, tables, computers, lighting, electricity, and personnel. All these have to come from the company’s expense.
Years of Legal Experience.
This agent has years of experience in bureaucratic processes. They are experts in their field- accountants, lawyers, and those who know what is going on inside. They get that filing job better than anyone just on training and just starting to be a registered agent.
The registered agent has their online tools. They don’t need to purchase or write a software program to enhance your filing. An example is that they have a website for you to access your documents for your review. They can secure it with passwords for protection and safety. The State can receive your records that are already online, like your annual report for compliance. When you are off State, they can scan for you, archive it, and send it to the internet for your review. If there are state changes of filing, they have a reliable network of resources. State filing for your account can already follow your company’s logo and title custom-built for your company.
Several entrepreneurs starting their business are taking their first steps in considering hiring a registered agent for LLC. Since a registered agent can handle business matters like receiving and complying with the necessary documents for your business, it is better to hire one. Hiring a registered agent for your LLC will always be at your discretion, but there are several compelling reasons why you need one. Some are already mentioned above.