Starting and growing a small business is hard. In addition to creating and selling a product or service, managing a budget, dealing with overhead and employees, and everything else, you really need things to go smoothly. So finding out about one more annoying task related to launching your business can be unwelcome – enter the Utah registered agent.
When many new business owners find out that they must deal with appointing a registered agent for their LLC in Utah (or registered agent service) on top of everything else, they get overwhelmed. If that’s you, don’t worry: It’s not as hard as it looks. In today’s post, we’re going to discuss what a registered agent is and how to appoint one, how to change your designation later, and best practices throughout, as well as some FAQs. Read on for more.
While the registered agent might sound like a fancy designation, the concept is actually quite simple. A registered agent is a person or entity who is authorized to collect, prepare, and send documents on your behalf. These include, but aren’t limited to, tax forms, government paperwork such as annual reports, and legal documentation.
One of the most important functions of a registered agent relates to matters of law, in fact. You must have a registered agent who can deal with service of process, the requirement that another party be alerted to legal action. Whether you are being served or serving someone else, a registered agent can help ensure it all happens in a timely fashion because they are available during normal business hours to do so.
The requirements for a Utah registered agent are minimal. They must:
Note that the state of Utah allows individuals and businesses to register as commercial registered agents. This gives them an extra layer of legitimacy if they wish to provide service of process to other businesses as part of their living. However, it is not required that your registered agent be commercial. That is a personal business decision for the registered agent to make, so you should not worry about it either way.
Yes, you are allowed to be your own registered agent in Utah. There is a difference, however, between you being your business’s registered agent and your business being its own registered agent. You, the person, must be the one appointed. That means the information you must put in your articles of incorporation, or on your registered agent change form, will include your name and your personal address, not the contact information associated with your company.
It also means that you must perform all the duties normally associated with a professional registered agent service. This includes receiving mail, responding to documentation, and undertaking service of process.
When you create your new business entity with the state of Utah, you are required to file articles of incorporation. This document contains the basic information about your business’s location, members, and other legal details. It is also the document in which you will first appoint your registered agent.
To file your articles of incorporation:
Note that Utah is a little different than other states. While other governments may require you to include information proving that your registered agent has consented to the job, Utah takes the listing of a registered agent’s name and address as proof of their consent. Make sure you have it, though, because otherwise the registered agent could contest the appointment and leave you legally vulnerable without one.
Let’s say you’re already incorporated and used whatever Utah registered agent or registered agent service seemed most convenient at the time, but now you realize you want someone else. That’s totally fine, and that state makes it easy to change. Simply:
Using a registered agent does cost money, it’s true. Typically, you can expect to pay between $100 and $300 a year for full services. You may find a simplified version of a commercial registered agent service in Utah, but they usually won’t provide the same value, because they are focused on cheapness over thoroughness.
That said, it is up to you to decide whether you feel like paying for the assistance or not. In making this decision, it helps to understand the potential benefits of using a registered agent service.
One of the primary reasons that business owners choose to hire a registered agent rather than do it themselves, or even assign it to friends and family, is that then they can feel absolutely certain the job will get done right. After all, you have many tasks on your plate when you run a business, and worrying about documentation isn’t fun.
A registered agent service is in the business because they are knowledgeable, they do it for many other businesses, and they plan to be available at all business hours to take care of tasks as necessary. Trusting that someone is always there brings great peace of mind.
There are a few ways that using a registered agent service helps you stay in compliance with state law. These include:
Many people start their own businesses so that they can escape the 9-to-5 rat race. Learning that there is a requirement that you be somewhere at all times during business hours in order to receive paperwork (possibly the most boring thing in existence, seriously) is not a fact that most people enjoy hearing. Bummer, right?
The good news is, you don’t have to maintain regular business hours or avoid long trips if you use a registered agent service. They’ll take care of all of that for you, without requiring that you be nearby or even in the country. And just like that, you have the freedom to travel, raise kiddos, go to the gym midday, or anything else an entrepreneur might want to do with their time. Since time is money, the price is truly worth it.
And that’s it. You now know why you’ll need a Utah registered agent, what your choices are when it comes to selecting the right person or entity for the job, and how to appoint your chosen agent. All that’s left is for you to get started on that business of your dreams!
A Utah registered agent or registered agent service is a person or business that is authorized to deal with legal paperwork and documentation on your behalf. You register them with the state so that the government and other businesses know to whom they should address your important documents.
It is required for all businesses to have a registered agent for reasons of mailing documents and service of process. As for needing an outside registered agent, you don’t: You can use yourself if you want.
Aside from you, anyone can be your registered agent who is over the age of 18, has a personal or business address in Utah, and is available during business hours to send and receive documents on your behalf. You can even use another business that is not a commercial registered agent if you like. Common examples include lawyers and tax preparers.
Changing your registered agent to someone else is a simple enough process, usually completed online, although you can also mail in a change request.
The cost of a registered agent varies depending on where you live and whom you choose. Normally, you should expect to pay between $100 and $300 a year.
This portion of our website is for informational or educational purposes only. Tailor Brands is not a law firm, and the information on this website does not constitute legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos on this page.
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