If you are trying to form a California LLC, then take note that in this state, how to start an LLC requires having a California registered agent who will handle all official paperwork on the LLCs behalf.
On this page, you’ll learn about the following:
California Registered Agent Requirements
There are certain requirements to fill the role of a California registered agent:
- The nominee must be more than 18 years old.
- The individual must have a legal, physical address in the state where the LLC will operate.
- The individual must be physically present during normal working hours.
How to Choose a Registered Agent?
When you file your Certification of Formation in California, you must nominate a registered agent. You can either appoint an in-house registered agent (yourself or any LLC member) or outsource to a California registered agent service. You can elect your registered agent online through the California Secretary of State website.
Hiring an Inhouse Registered Agent
When hiring an in-house registered agent, make sure the individual is over 18 of age and lives in California.
Can I be My Own Registered Agent?
Yes, you can be your own registered agent. So long as you meet the basic requirements for a registered agent, then you can take on this role for your LLC.
Outsourcing a Registered Agent
You may, instead, get professional registered agent services. Doing so ensures that you will have the best individual to represent your business. Here are the best LLC services on our list that can provide you with registered agents to ease your worries.
Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
What to Consider When Choosing a Registered Agent
Here are some factors to consider when choosing a registered agent.
- Service Fee: Since most states require formal businesses to have registered agents, selecting the best-registered agent is critical. Hiring a registered agent service typically costs between $50 and $300 annually. When you consider how much time it will save you, this is a small price to pay.
- Tenure in Business of Registered Agent: You want the registered agent to have established and time-tested procedures for handling documents that are received.
- State Jurisdiction Limitation: If your company expands to another state, you should use the same registered agent in all states to reduce the administrative burden of dealing with multiple registered agent service providers.
- Offer Monitoring and Follow-up Services: You want to receive up-to-date information and alerts from your registered agent as soon as possible so that you are aware of the various statutes, rules, and regulations that apply to your company.
California Business Laws for Registered Agents to Note
Registered agents are responsible to handle all the business laws and other legal issues related to California LLC. Every state has its own business laws. California is no exception. It has its own set of different business laws to follow. Here are some of the important business laws every business should follow,
- Interest Law: Every state in the United States has an Interest law for businesses. Normally, the general interest rate guidelines are lesser than the legal threshold of interest rate. The reason behind this is, that most businesses agree on higher interest rates. In California, the interest rate on Sales is 12% while the interest rate on judgment is 7%.
There is another law in California called Usury Law. In this law, a higher rate of interest is charged for loans and advances. This interest rate falls under the legal guidelines. Up to a 12% rate can be charged when the regular rate is 7% in California.
- Antitrust Law: In general, Antitrust law detects the formation of cartels in any open market. When competitors come together and influence the market price and supply in illegal ways, they form a cartel. Cartels are illegal in any market. In California, like any other state, there is an Antitrust Law to prevent this.
The time span to bring the claim under this law is 4 years in California. Also, a successful plaintiff can recover the fees of his/her attorney under this law.
- Deceptive Trade Practice Law: California does not have Deceptive Trade Practice Law directly. However, it does have penalties for trade malpractice and other deceptive practices in the state. Any attorney general can raise the case. The penalty can be up to 6 months in jail and/or fines up to $2,500 or both.
- Civil Statute of Limitation Laws: The Civil Statute of Limitations Law in California is no different than in other states. Up to 10 years of imprisonment will be given to the accused under this law. Unde Civil Statute of Limitation Law, there is a limited time within which lawsuit filings should be filed. Failing to do so, the penalties and other steps are to be taken.
The registered agents are the ones who take care of these cases and laws for you. Hiring a registered agent in California will help you to handle and cope with all these business laws.
How to Remove a Registered Agent for LLC in California
A registered agent for LLC in California can be removed by submitting a Resignation letter by the existing registered agent with California Secretary of State.
If you are looking for information on how to remove a Registered Agent for LLC in California, you have come to the right place. You can easily remove an agent in California without filing any forms. Here are some helpful tips:
If you are planning to dissolve your LLC, it is important to know that you need to inform the city and county of your intent to dissolve. You can do this online or by hand-delivering the required documents. There is no filing fee, but you’ll have to pay $15 for the counter drop-off. If you need copies of your filed documents, it costs fifty cents per page. You must also include payment when certifying the documents.
You can also file a Statement of Information to change your registered agent in California. The Secretary of State will send a notice to your previous agent to confirm that you are no longer the agent of the entity. Once the agent of record resigns, the business must appoint a new agent. The California Secretary of State issues file numbers to both corporations and LLCs. Corporations must include a “C” before the file number, while LLCs must just include the file number.
California LLCs must file a Statement of Information every two years. This form acts as the business’s biennial report and change-of-agent document. California has two options to file your Statement of Information: via mail or in-person. You can also opt to pay for expedited filing. The expediting fee will vary depending on how quickly you want the document to be processed. The filing fee is $20.
If you do not wish to hire a registered agent, you can also act as the registered agent for your LLC. Providing a registered agent for your LLC is a legal requirement for business. A registered agent accepts important documents and accepts service of process from the state office. A registered agent should be available during normal business hours. You can also opt to provide the agent with a physical address.
Listed below are a few things you should consider before changing your registered agent in California. Keep in mind that if you want to remove an agent for your LLC, you must notify the Secretary of State. You must also provide a physical address for the agent, otherwise your LLC may not be allowed to operate. If you have a California registered agent, it is important that they have a physical address so they can receive service of process.
When you’ve decided to dissolve your California LLC, you must file a certificate of withdrawal and pay a fee. You’ll no longer be authorized to do business in the state of California after the effective date of your withdrawal. In addition, you’ll have to file final employment tax returns and pay any required deposits. Your last step will be to pay off any outstanding debts that you have incurred as an LLC. If you decide to dissolve your California LLC, you must also file final employment tax returns with the IRS or the California Employment Development Department.
All corporations and limited liability companies doing business in California are required by state law to appoint a California registered agent. California registered agents provide a reliable way for the Secretary of State and state courts to contact a corporation or LLC.
A registered agent is simply a person or entity appointed to accept service of process and official mail on your company’s behalf who lives in the state of service and is over 18.
If you intend to be your own registered agent, you may be forced to use your home address (especially if you run a home-based or web-based business), making the address public.
Before you choose a registered agent for your California LLC, compare their price and services from the table. They will be responsible for all your documentations, filings, and other LLC-related tasks. Hence, choose the best one for your business that provides 100% accurate service at a reasonable price.