The importance of a registered agent for a corporation or LLC

In Nebraska, businesses need to be aware not just of the overriding principles of its formation, but the smaller details. For those who are forming a corporation or a limited liability company (LLC), it is wise to understand which is preferable based on the business itself and its goals. In addition, it is also crucial to know about the importance of a registered agent and what that role entails. From the initial stages of starting a business, changing a business formation or buying a business, these aspects should not be ignored.

The difference between a corporation and an LLC

A corporation is a type of business formation that protects its owners from legal liability for debts and more. There will be a board of directors that gives responsibilities to corporate officers to oversee the business. The owners are shareholders who are required to take part in certain activities like having meetings, keeping track of what is said at the meetings and making stock available for purchase. An LLC is like a corporation in that its members are accorded limited liability for debts and other actions. It has certain tax benefits with profits and losses going straight to its owners. The members can manage it or delegate that responsibility to others. There is greater freedom in how an LLC is managed than there is with a corporation.

How does a registered agent factor in?

Both corporations and LLCs need a registered agent. In short, the registered agent is the legal designee to receive government communications and service of process. That includes receiving lawsuit information, government forms and franchise taxes. The registered agent must always be available for business communications. The registered agent can be part of the corporation/LLC or be a third party who lives in the state. Maintenance of the office of the registered agent must be continuous while the corporation or LLC is in operation. Failure to do so could lead to the company being subject to administrative dissolution.

Professional guidance can help with running and maintaining a business

Simply having an idea, product or service is a good start when starting or running a business, but it is not the sole factor in its success. Knowing about business formation and following the rules with a registered agent are also key parts that should be addressed from the outset. For problems or concerns related to these or any other business-related issues, it is useful to have experienced assistance from qualified professionals to ensure compliance and combat challenges as they arise.