On this page, you’ll learn about the following:
Delaware Registered Agent Requirements
There are certain requirements to fill the role of a Delaware 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 Delaware, you must nominate a registered agent. You can either appoint an in-house registered agent (yourself or any LLC member) or outsource to a Delaware registered agent service. You can elect your registered agent online through the Delaware 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 Delaware.
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 will 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.
Delaware Business Laws for Registered Agents to Note
In Delaware, there is a set of business laws that every business has to follow. As your registered agent is responsible for forming your LLC and handling your documents, they are responsible for handling these laws as well. Following are the business laws one has to follow in Delaware when forming an LLC.
- Deceptive Trade Practices Law
In Delaware, attempting any deceptive trade practices leads to heavy penalties. If any company or business misleads buyers on the basis of quality, quantity, ingredients (raw materials), or any such sort, they can be heavily fined.
A penalty from $100 to $10,000 can be levied on the accused. Delaware Deceptive Trade Practice Law has a time span of three years to bring the claim.
- Antitrust Law
Delaware State has Antitrust law to prevent monopolizing in the open market. The law aims to protect the customers as well as business competitors to have a competitive price in the market. For the Antitrust Law, a successful plaintiff can revive the Attorney fees under this law.
An attorney can bring the claim within the 3-years of timespan. The accused can be punished either by paying fines, imprisonment, or both in such cases.
- Interest Rates Law
In Delaware, like California, they have Usury. That means any interest rate charged over the legal threshold will be considered to be illegal. The maximum interest rate threshold of consumer or non-consumer loans is 5%. Whether it is decided over a written document or a non-written document, the maximum rate of interest is 5%.
Violating the rules, the debtor can claim 3-times the additional interest rate charged or $500 whichever is greater. The time span to bring the claim is 1 year.
- Wage and Hour Laws
Every state in the United States has wage and hour laws to protect workers. In Delaware, the state government has set a threshold of a minimum of $8.25 per hour. Whereas, the minimum hourly wage set by the federal government is $7.25. Any employer offering less than any of these wages is subjected to be accused under this law.
The penalty starts from $1,000 and can go up to $5,000 per violation. Any employer attempting discrimination between the employees on the basis of minimum hourly wage will be punished or heavily fined.
- Civil Statute of Limitation
The civil statute of limitations is the time span within which the plaintiff can bring the case. It aims to preserve and protect the evidence and witnesses. A plaintiff can decide whether to claim or pass within the said time. In Delaware, the civil statute of limitation is 3-years. It includes personal injury and fraud.
The defendants, on the other hand, will have to counter the claim within this time otherwise there will be consequences. The agenda of having this limitation is not to allow a case to be hanged forever.
- Pyramid and Ponzi Schemes Law
Pyramid and Ponzi schemes are quite similar in nature. In both schemes, a business recruits investors to pay money to the other investors in the name of profit. However, there is one difference between the two schemes. In the Pyramid scheme, the first investor recruited by the business recruits the next level of investors. On the other hand, in Ponzi schemes, the business recruits all of the investors.
Businesses attempt these schemes to make money without running a proper business. They keep going until the investors stop providing the resources or the company dissolves. The penalty for having these schemes is a fine of up to $5,000 and imprisonment of up to 3 years in Delaware.
Your registered agent will be responsible for making you aware of all the business laws in the state before you start an LLC in Delaware. So that no legal conflict or tension occurs while running your business in Delaware.
How to Remove a Registered Agent for LLC in Delaware
A registered agent for LLC in Delaware can be removed by submitting a Certificate of Amendment with Delaware Division of Corporations with a filing amount of $50.
If you want to change your registered agent for your LLC, you can easily remove it by filing a filing cover memo with the Division of Corporations at the Department of State. This form notifies the state of the change and provides details on the new agent. You can either submit it online, by mail, by courier service, or personally. Then, the Division of Corporations will process your change. If you don’t have the time to do all of the necessary steps, you can always ignore the question and get the new registered agent.
To change your registered agent in Delaware, you must submit the form titled “Change of Agent.” This form costs $50 and will be processed by the Division of Corporations. You can also use a professional registered agent service that covers all 50 states. However, you should be aware that Delaware only accepts forms designed for changing registered agents. As such, it is best to use the form titled “Change of Registered Agent in Delaware.”
In order to remove the registered agent from a Delaware company, you must notify the registered agent before filing his/her resignation. If the registered agent fails to notify the company, the change will become effective thirty days after the filing of the notice with the Delaware Secretary of State. This process may be difficult, but there are several steps you should follow to make the change. After making these steps, the registered agent will no longer be responsible for processing the documents on your behalf.
When you change LLC registered agent, you must notify the Division of Corporations of your new address and contact information. An unnoticed change in the contact details of the Registered Agent could lead to a default judgment and could lead to a revocation of the LLC’s status in the state. It is advisable to use a registered agent service to protect your company’s confidentiality. If you don’t want this information to be made public, you can hire a private person to serve as a registered agent.
If you want to remove the Registered Agent of your LLC in Delaware, you should file a change-of-agent form with the Division of Corporations. You can find these forms in PDF format. Make sure to follow all of the necessary requirements, as failure to do so will result in revocation of the LLC’s legal status and additional penalty fees. It is important to change the registered agent at the right time.
To remove your LLC’s Registered Agent in Delaware, you need to notify the Division of Corporations immediately. If you fail to notify the Division of Corporations, you could risk losing your good standing with the state. There are other options available if you need to change your registered agent. If you do not have enough time to replace the agent, you can choose to have your new registered agent serve as the agent instead.
All corporations and limited liability companies doing business in Delaware are required by state law to appoint a Delaware registered agent. Delaware 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 Delaware 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.