But what are the powers of registered agents, and what do they do? The short answer is that they are individuals or businesses that accept legal and government notices, as well as any other important documents on behalf of your business.

What's the Difference Between a Registered Agent and a Managing Member?

A managing member is someone who owns at least part of the LLC and also helps run the business. In contrast, a registered agent is simply an organization or individual that can receive important documents during normal business hours (9am - 5pm). This means that the managing member of your LLC can usually be your LLC’s registered agent, although that may not always be the case depending on state law.

However, it’s not always practical or wise to have your LLC’s managing member as its registered agent. For one thing, your managing member may not always be available to receive service of process or other important correspondence during the typical workday.

Another potential drawback is that a managing member who is also a registered agent will likely use the LLC’s primary business address as the physical address for registered agent purposes. This means there’s the potential for potentially uncomfortable or awkward situations where a law enforcement officer or process server shows up at your business (and in front of clients and customers) to serve your business with legal papers.

Is the Registered Agent a Member of the LLC?

No, although they could be. A member of the LLC or other LLC employee is often qualified to serve as the LLC’s registered agent, as most states simply require the registered agent to be 18 years of age and older, have a physical address, and be available to receive correspondence and legal papers during normal business hours. But this doesn’t mean a registered agent will have the same powers as an LLC’s member, founder, or owner. Besides being available to receive special documents on behalf of the company, a registered agent generally has no other purpose.

Can a Registered Agent Sign Documents on Behalf of an LLC?

Yes and no. The registered agent can sign documents on behalf of the LLC, but only to the extent they directly relate to receiving documents, like mail or service of process. For example, if your LLC is being served by U.S. Certified Mail, return receipt requested, someone must physically sign a document (usually a green postcard) identifying who they are and that they received a certain piece of mail. A registered agent will need to sign this document to carry out his or her duties as a registered agent.

That being said, the registered agent can’t sign any other documents on behalf of the LLC, like contracts or other legal documents, such as business filings. Suppose your LLC’s registered agent must also have the power to sign documents on behalf of your LLC. In that case, you should consider assigning the appropriate employee, officer, or managing member to be your LLC’s registered agent.

Can a Registered Agent Sign for a Trademark?

No. According to the U.S. Patent and Trademark Office (USPTO), only the attorney representing your LLC in the trademark matter or an appropriate LLC member can sign documents relating to trademarks.

Can I Change Who My Registered Agent Is?

Absolutely. Many LLCs and other required business organizations will hire a registered agent service to act as their registered agents. You are, therefore, free to choose a different registered agent service or individual to act as your LLC’s registered agent whenever you choose. The exact process will depend on where your LLC is located, but will typically entail paying a small fee and completing a few forms for your state’s relevant agency.

Things might get a little bit more complicated in situations where the current registered agent is an employee or owner of the LLC, and the LLC has specific policies or rules in place regarding how to choose a different registered agent. For example, the LLC’s operating agreement contains instructions on how the company should be managed, which can include how changes can be made to the responsibilities and voting powers of its members. But in these situations, it’s the LLC’s operating agreement that’s placing restrictions on changing the registered agent, not state law.

Can a Registered Agent Open a Bank Account on Behalf of the LLC?

Probably not. Remember, all a registered agent can do is accept legal documents, mail, notices, and other important papers for the LLC. They do not have the authority to enter into contracts, legal agreements, or business deals on behalf of the LLC. In cases where registered agents exercise these abilities, they will act as the LLC’s managing member or another authorized individual, not the LLC’s registered agent.

Conclusion

Having a registered agent is an important part of your business if you’re an LLC. Despite this requirement, registered agents have very little power, as they’re only needed to accept service of process in a legal matter and other important papers on behalf of the LLC they represent.

Sometimes this is even required by law. Sometimes it's just to make sure the person seeing it knows it's a registered business he can trust. 

Writing LLC on business cards is mostly recommended, but obviously, “LLC” doesn’t need to be written everywhere. It is, for instance, quite common not to have an LLC in the logo.

Do I need to mention LLC on my business card?

Yes, a business name is recommended to include “limited liability company,” “Company,” or “Limited” on the business card. If you don’t include the word “LLC” or “Inc.” on the business card, it can be problematic. For example, a business card with only the company name might trigger unintended repercussions for the company.

LLC Business Card Examples:

1. Location of LLC: Most attorneys recommend including the full legal name indicating the business is a registered legal entity. From a legal perspective, when you use the full business name, it indicates that the company is an LLC. 
2. LLC and Logos: Some attorneys claim that including the LLC as a designator is being used on everything, especially the logo. But that is *not* a requirement, naysayers may claim including the LLC designation with the logo may be purely aesthetic or marketing strategy. 

What is a DBA?

DBA means “doing business as” by definition. DBA can be your business’s assumed, trade, or fictitious name. Using an LLC and DBA name means they can be different or the same. Both DBA and LLC names permit you to do business under a specific name as well. But it is important to realize that an LLC is a business structure, and a DBA is merely a registered nickname for an established business.

An LLC is a separate legal entity with or without a DBA business name. A DBA is not a separate legal entity but can be if registered. In conclusion, a company can operate with another name than the one listed.

DBA vs. LLC

A DBA does not replace an LLC. Also, when a business owner uses an LLC then a DBA is not required. The reasons to use a DBA or LLC are different.

You can use a DBA over LLC for various reasons depending on your need. For example, it could be tax reasons or based on how many people your business employs, or if a company wants to be able to trade on the open market.

In summary, using a DBA compared to an LLC may not be a replacement. Using a DBA may be better from a marketing standpoint. If you need to use an LLC and a DBA, it is possible to operate numerous DBAs under a sole LLC. In the end, you need to use an LLC. 

What are the allowed forms to write LLC?

LLC forms can include the different ways you can set up your LLC. Every LLC is different depending on your business needs. Each LLC can be listed according to each business and state law as well.

In general, a company’s name and words for designation like “limited liability company,” as well as abbreviations like 

1. LLC
2. LLC Limited
3. L.L.C.
4. Ltd.
5. Limited Liability Co.
6. Limited Liability Company

In what other cases do I need to mention LLC in my company name

Whether you are doing a contract, invoice, contract, legal record, tax return, or other documents, you need to include “LLC.” In general, every state has its own requirements. Usually, most LLC requirements are similar and vary minimally. However, LLC needs to be stated and included in the following:

• invoices
• contracts
• leases
• legal records
• tax returns
• letterhead
• official documents

In what cases do I not have to use LLC?

A logo card is not a requirement for using LLC within the name. Using an LLC is recommended in many places for your business's trustworthiness and merit. However, here are the exceptions that show how effective an LLC can be.

When a business name is not so memorable than an LLC helps. Because it makes it easier for customers to remember it. A logo and LLC are best when they need your services or products.

1. Logo on Product
2. Banner on Your Store
3. Logo on Your Website
4. Business Cards
5. Correspondence

It is best to include the LLC in your forward-facing customer or client correspondence. Thus, logos and more are strongly recommended for an LLC. Deciding not to use your logo makes things more problematic. Therefore, it is best to include an LLC  instead of your full legal name.

Additional requirements when writing your LLC name

When listing an LLC, there is no legal rule for showing it. However, consider punctuation when naming your business.

You need to use the letters “L” and “L” and “C” after your company’s name. Other versions of including LLC in a logo include a comma after the company name and then “LLC”.

Comma before LLC:  There is no rule, so you can add a comma before LLC. up to you. So, a comma between the title of your business and the corporation or LLC designator is fine. 

Period after LLC: In regards to period or any punctuation placement, there is no firm rule.  So, when it comes to placing a period after the letters LLC you have options. 

Consistency with LLC: Consistency when using a company name is key. For example, if you decide to include a comma, then it needs to be used in everything going forward. In summary, everything listed with this LLC, like filings, paperwork, and documents, needs to be consistent. 

You can put a period after each letter, after the last letter, or you can decide to include or leave out the period. In terms of what is accepted, each option is grammatically correct.

Advantages of Showing LLC in a Business

Using the "LLC" or LLC designator for your business name is greatly beneficial. Why? This means that future clients and the public have seen that a business has taken the steps to register an LLC. 

Using an LLC in a business ensures and alerts people that a company is a distinct legal entity. In conclusion, legally, the LLC makes clear that anyone is dealing with a business entity and not with you personally.

New Mexico is regarded to be better for foreigners compared to Wyoming. Primarily, New Mexico values privacy more. Also, unlike in Wyoming, you are not required to file annual reports and reveal who owns your company.

Comparison Overview

Registering an LLC as a Foreigner

Any non-U.S. residents would be able to incorporate a business in any state. States like New Mexico, require no public register or disclosure of shareholders or members. Therefore, it is wise to see how a state like Wyoming or New Mexico may differ on fees, privacy, and functionality.

When a foreigner files an LLC, there needs to be a registered agent based in the state. Moreover, the business in question required an address in the USA. If you maintain strong ties to a state with your company, then having an office or presence is best in that state. 

As stated in paragraph 1 In “How to Find (or Become) a Registered Agent”  “All business entities filed in Wyoming should …. maintain in this state a registered agent to accept service of process.” In summary, the failure to keep an in-state registered agent will mean the termination or cancellation of an LLC.

Overall, the benefits of filing an LLC in another state go away. Because it would be more advantageous registering the company in your state.

Registering an LLC as an American Out-of-State

New Mexico is better for doing business outside of the state. In addition, New Mexico does not require state residence. You are allowed to do business in your home state or abroad without additional filing requirements. The laws of your state or domicile are separate from any New Mexico LLC. 

On the other hand, in Wyoming, if you live out of state, you will have to deal with different laws. An LLC based out of state would have to follow local laws. For example, to protect your LLC assets from garnishment by creditors then you would follow Wyoming law.

In the end, filing an LLC in your home state is the best move for most small businesses. An in-state LLC means you can avoid any unneeded and continual fees from an out-of-state LLC.

LLC in New Mexico

Nearly every state requires an annual report of business activities. New Mexico does not. This is one of the many advantages of having an LLC in New Mexico. 

All states mandate the appointment of a registered agent within the state. As stated in the second step of the  Chamber of Commerce Site, a registered agent must be a state resident or business entity with an address or business office in New Mexico. 

Tax and Fees: In New Mexico, there is no requirement to pay an annual or flat fee. Pass-through taxation is special to New Mexico. For example, this is when businesses don't pay taxes on the individual level. In summary, this type of taxation income goes to the owners of the business. From there, it is that individual who pays personal income taxes for their share only. 

LLC taxation and specifications are simpler in New Mexico. So, with a New Mexico LLC, the double taxation that corporations require will not apply to you. All in all, you can record your company's earnings as if they are yours.

Privacy Differences:  

When you have to decide about privacy, New Mexico is better. A New Mexico LLC is best for its low fees and ease of anonymity with privacy. 

New Mexico takes privacy seriously. There is no need to list the names of LLC members on the Articles of Organisation. Overall, a crucial factor as a foreigner or anyone else when forming a company is anonymity.  Moreover, for shareholders, LLCs are only required to list who organizes initially the first year. No Shareholders are or need to be listed. That means whoever organizes the LLC will have their name and address appear on the Articles, not shareholders. 

Moreover, New Mexico does not ask for the name of a company manager for an LLC. Usually, most states require this to be included in the articles of the organization during filing.

Costs:

A New Mexico LLC is easier and more cost-effective. Compared to Wyoming, an LLC in New Mexico is more affordable because you have no annual fees. The New Mexico state fee is $50, which is reasonably priced. As well, there are no annual reports or fees required to be filed with New Mexico overall.

The costs will vary depending on location and industry, but usually, these fees are not too high. Moreover, costs and fees may depend on what your industry is in general. Expect to pay fees and taxes as a New Mexico LLC owner.  In New Mexico, there is a federal income tax, state income tax,  and more, depending on your business. For example, you might have to factor in a payroll tax with, of course, sales tax and more.

LLC in Wyoming:

For foreigners, Wyoming has a friendly business environment, no taxes, and less red tape.  When you establish an LLC in Wyoming as a foreigner,there is no residency beecause you pay no state taxes.

This attracts many people to Wyoming because of the appealing LLC and business reputation. Many foreign or out-of-state businesses that want to pay taxes, like a Wyoming company. An interesting fact is that Wyoming LLCs have a long history with case law. Wyoming's history dates back to 1977. However, do note that LLCs need to as stated by Wyoming: Series Limited Liability Company  follow the constitution and laws of Wyoming.

Taxes: Wyoming is one of only nine states with no Individual income taxes.

Wyoming has zero business tax, so corporations or LLCs pay no tax on their businesses, including zero franchise tax and stock tax.

If you don’t have an office in Wyoming, then your tax status is similar to what it would be for an online business. In essence, you do not pay state taxes, but are obliged to pay federal taxes.

Privacy: Wyoming is great for anyone seeking privacy as an LLC.  Thus, members, shareholders, CEOs, and owners are not disclosed for the public record. 

Wyoming LLCs are attractive because of strict privacy laws. So you can maintain a low profile and guard your privacy. There is anonymous ownership in the state of Wyoming. 

For investors, Wyoming does not request members or managers to be listed. As an investor, you will not be revealed. Your anonymity as an investor is protected. Only the registered agent and person who files the paperwork will be disclosed, thus guaranteeing privacy.

Costs: Setting up an LLC in Wyoming means generally paying low fees. Costs for setting up an LLC are $100, in terms of fees. Give or take some minimal setup fees, filing an LLC is easy. In comparison, when you file with the Wyoming Secretary of State, it is cheaper than in most states.

Conclusion:

In comparison, New Mexico is easier and more affordable. Unlike Wyoming, New Mexico does not require the filing of an annual report. Moreover, New Mexico does require reporting of who owns the LLC. Thus, New Mexico offers more layers of privacy.

A New Mexico LLC is easier and more cost-effective. Compared to Wyoming, an LLC in New Mexico is more affordable because you have no annual fees. Moreover, no annual corporate tax for New Mexico LLCs. 

The biggest difference is that Wyoming has lower registration and processing fees compared to New Mexico. While in New Mexico, forming an LLC costs less than $300 from beginning to end. You need to weigh costs vs. privacy when you evaluate each state. 

As with many laws in America, each state that has an LLC legislator has certain factors that are unique to that area. In this article, we’ll be making a state comparison of Delaware vs. Nevada vs. Wyoming LLC to determine which is the best for you. At first glance, it may be clear which one is the winner, but your opinion might change when you take a closer look at the relevant details.

Overview: Delaware vs. Nevada vs. Wyoming LLC Incorporation

Delaware: Historically Incorporation-Friendly

Delaware has been somewhat of an LLC hub over the years. With over 60% of Fortune 500 companies being incorporated there, it’s safe to say that this state is a bit of an incorporation-friendly hot spot.

Two statutes, the Limited Liability Act and the Delaware General Corporation Law, go a long way toward protecting business owners’ personal interests. When a business conflict reaches the courtroom, it isn’t judged by a jury. Instead, only judges specializing in business law preside over these cases and make rulings based on extensive knowledge. These courtrooms are well-versed in business disputes, with over 1,000 such cases being processed in Delaware each year.

Business owners are able to maintain an extra layer of privacy in Delaware, as they aren’t required to divulge their personal details, such as their names or addresses. Other states make these matters a part of the public record, meaning that people can quite easily find out how much someone owns. At the same time, any filings you make with the Delaware Division of Corporations will indeed form part of the public record.

Tax laws for Delaware businesses are also very accommodating, and businesses can create what’s known as “series” incorporates, which are smaller companies functioning under the umbrella of a larger one.

You might also find that working with this state will save you money. Registering a business in Delaware costs $90, a low amount in comparison to other states. If you own an incorporate in Delaware but don’t do business there, you won’t be required to buy a license. Many people outside of the state end up creating LLCs in Delaware for this exact reason. You also aren’t required to have a bank account in the state or to have meetings there in order to have a Delaware LLC.

Incorporate in Nevada: High Degrees of Privacy

In no way an inferior option, Nevada has also been known to be good to its incorporations. Legislature for this kind of business structure in the state is still relatively new, having only started in the 1990s. However, it’s developed rapidly, making Nevada solid competition for other states.

Rivaling Delaware in the tax department, Nevada LLCs get a break from corporate, franchise, and income tax. You also won’t have to pay taxes on corporate profits or shares, making the burden on your pocket much less.

Companies don’t need an extra director for incorporation in Nevada. This makes things much easier for small businesses that don’t have the vast manpower of bigger corporations.

Starting up an incorporate in Nevada doesn’t come cheaply, though. You’ll need to pay the Secretary of State a hefty $425, which is much higher than some other states will charge.

It’s important to keep in mind that if a lawsuit should arise against your business in another state, Nevada law might not be upheld, depriving you of the protection you would have otherwise had. The same rule applies to taxes, so if you’re looking to start a Nevada LLC in another state, consider how those factors will apply to you. Even if you’re running an online business, you’re still running it from a location that’ll have its own rules.

Nevada goes a long way toward protecting business privacy, allowing owners to keep their identities hidden in the public record. However, other members such as directors and managers don’t enjoy the same level of discretion.

Incorporate in Wyoming: Up and Coming

Another, “younger” state, Wyoming isn’t to be sneezed at in this category. The state has a number of benefits outweighing its rivals. In fact, some might even argue that the Wyoming incorporate legislature is one of the best options available in the business world.

Wyoming tends to be good for LLCs, even finding ways to accommodate people who aren’t American citizens. This means that people from almost anywhere in the world can start a Wyoming LLC without having to relocate or change their citizenship. You can open a Wyoming bank account anywhere in America.

If you’re looking for a state that isn’t going to cost you an arm and a leg, this could be the one, as Wyoming’s renewal fee is much lower than Nevada’s. Though, bear in mind that you’ll still have to pay your agent, along with other fees. One can easily forget about it when getting lost in promises of low renewal costs. However, if you miss your annual payment deadline, you’ll never be able to renew it. While most states would allow you to reinstate an LLC, you would have to start a new one in Wyoming.

All records, both personal and business, are closely protected in Wyoming, and since the state doesn’t have an agreement with the IRS, you have added anonymity.

Conclusion

Business is anything but an exact science. One can never know how things will turn out when starting a new venture, as many things that are outside of your control may jeopardize you. That’s why it’s important to cover as many of your bases as you can before taking the leap. Having an LLC will help you to weather a storm if it should occur.

Deciding on which state to establish your company depends on your personal business needs. Are you aiming for lower taxes or greater privacy? Do the 110+ years of Delaware legislature appeal to you, or do you want a younger option like Wyoming or Nevada?

It’s important to remember that the laws of your chosen state don’t nullify those of the country or state you’re operating from. Make sure that you have sufficient knowledge of both when making your state comparison.

Florida and Delaware are both considered to be top competitors in the LLC contest, which is why many business owners are eager to register their businesses there. Each state has its pros and cons, depending on what you’re looking for.

In this article, we’ll be comparing the states of Delaware vs. Florida LLC to see which one might be the best option for your business. We’ll be discussing factors such as taxation, additional fees, privacy, and law. We’ve also included a table to help you compare two states more closely to each other.

Comparison Overview

Delaware

Delaware has been known to be one of the best states to have an LLC. Over 66% of Fortune 500 companies are registered as LLCs in the state, making the argument for a Delaware license quite strong.

Part of what makes Delaware such a great state for LLCs is because of the advanced legal options available. Business owners’ personal interests are protected by two statutes: the Limited Liability Act and the Delaware General Corporation Law.

If your business’ legal dispute reaches a courtroom, you won’t be faced with a jury. Instead, a judge specializing in business law will preside over the case, making sure that all the correct procedures are being followed. These courtrooms regularly see legal disputes through, as more than 1,000 of these cases are processed each year.

Most states make business owners’ details a part of public records, but Delaware allows you to register your LLC without divulging information like your address or name. Bear in mind, however, that any filings made with the Delaware Division of Corporations will indeed form part of the public record.

Tax laws, which can often be a bit of a headache, are more lenient in Delaware. You also have the option of running a “series” incorporation, which means that you can have multiple businesses under one umbrella. However, you’ll have to pay an annual flat tax rate of $300.

Although it’s only a once-off cost, it’s worth noting that registering an LLC in Delaware costs $90, a much lower amount than what you would pay in most states. If you own an LLC in Delaware but don’t conduct your business there, you won’t be required to pay this fee. You don’t need to have a bank account in the state or have any meetings there, which is why so many people outside of Delaware register their LLCs there.

Florida

Florida is still relatively new in the LLC game, but that’s not to say that the Sunshine State isn’t a worthy competitor.

Having an LLC in Florida comes with a tax advantage, as these companies don’t need to abide by the state’s taxation laws. This means that you’ll have the freedom of choosing between being taxed as a corporation or a partnership.

In a partnership, each partner receives separate taxation for items applying to them specifically. According to the Taxation Foundation, Florida ranks fifth place as one of the most favorable tax climates for businesses.

Because LLCs are still relatively new in Florida, owners won’t have the advantage of the vast legal history and expertise available in Delaware. A state with a long legal history has many previous court cases that can be cited as examples.

Additionally, business owners have been spooked by a 2010 court case finding. In Shaun Olmstead, et. al, vs. Federal Trade Commission, the Florida Supreme Court found that a single-member Florida LLC owner can be forced to hand over their entire interest in the company to settle outstanding debts. This has resulted in hesitation regarding Florida LLCs, as some business owners are uncertain of how safe their assets really are.

As of 2018, starting up a Florida LLC requires a filing fee of $100. You’ll also need to pay $25 for a registered agent and $138.75 for an annual report. If you submit your annual report after the 1st of May, you’ll need to pay a filing fee of $538.75. These costs can all amount to an uncomfortable number if you don’t prepare for them.

Conclusion

As you can see, both Delaware and Florida are good options for LLCs. Each one comes with its own factors that you need to keep in mind.

Businesses are always going to carry risks, and that’s why you need to think carefully with each decision you make. LLCs have long been a way for owners to protect their personal assets, but the topic of which state allows the best LLC benefits remains a hotly debated one.

While Delaware may have a better legal system in place for LLCs, Florida offers great tax benefits. While you don’t need to pay franchise tax in Florida, Delaware offers greater privacy for business owners. These are only some of the factors you need to keep in mind when making your decision.

In the end, there is truly no right or wrong option. Base your decision on detailed information on all the states you’re considering for your LLC. Consult lawyers and other experts on the best path to take. Finally, remember that your business is unique and will face challenges that aren’t necessarily that important to others.

Keep in mind most states also charge a fee for maintaining the LLC.

To quickly find the fees in your state, we created an overview.

Overview of Formation and Maintaining Fees

What Additional Costs Should I Expect?

Beside the formation fees, you should be aware of additional costs that accure while forming your LLC. Those can be:

• Costs to reserve an LLC name (this is optional)
• Business License Fees (depending on where you operate and what your business is about)
• Costs for Fictitious Business Name Application (if you want to use a DBA which stands for doing business as)
• Minimum Annual LLC Taxes (some states have a minimum tax that needs to be paid even if the LLC earns no profit at all)
• Registered Agent Fees (you can be your own registered agent, but in many cases, it makes sense to hire a professional service to be your agent)