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
- How to Choose a Registered Agent?
- What to Consider When Choosing a Registered Agent
- California Business Laws for Registered Agents to Note
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 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 three of the best LLC services on our list that can provide you with registered agents to ease your worries.
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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, most businesses agree upon higher interest rates. In California, interest rates on Sales in 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 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 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 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
If you want to change your registered agent, you can follow a few easy steps to do so. Contact your state business office for the necessary forms and instructions. In most states, the process of changing your registered agent is free and easy. Make sure to contact your lawyer before you take any action. Here are some tips for removing a registered agent from an LLC. These will help you make the transition easier.
The first thing you need to do is change your agent with the California Secretary of State. There are specific rules for changing your registered agent and how you should complete Form LLC-12 (Statement of Information) in order to change it. The Secretary of State website also has tons of information about this form and how to fill it out correctly. After you have changed your agent, the California Secretary of State will send you a copy of the form. Once the form is approved, you will need to wait a couple of days before your changes take effect.
The next step is to contact the California Secretary of State and change the registered agent for your LLC. A lawsuit will be deemed as the proper notification if you don’t give your registered agent the right response. You can also change the Registered Agent for an LLC in California at any time by changing it online. Once you’ve changed your registered agent, you can use the state’s website to update your information.
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.