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One of the things you’ll need to determine before filing your paperwork to form a limited liability company (LLC) in Nevada is who will serve as your registered agent. The state requires all LLCs to have one, but what is a registered agent? What are their duties, and what are the requirements to be one?
What is a Nevada Registered Agent?
A registered agent is an individual or company that is designated by the LLC to receive important legal documents on behalf of the business. This position is necessary to ensure that the correct people within an LLC are notified in the event of time-sensitive events, which could be things such as service of process for lawsuits, garnishment notices against employees, a notice of annual reports, or notifications of taxes.
Who can be a Registered Agent in Nevada?
Nevada allows separate registration for commercial registered agent services. This allows those looking to form LLCs an easy way to find a company that can act as their registered agent, but an individual or entity can also serve as one.
According to Nevada statutes (NRS 77.310 – 77.320), a registered agent filing must state:
- the name of the represented entity’s commercial registered agent; or
- the name and address of the entity’s noncommercial registered agent; or
- the name and address of the business office of a person who holds a title or other position within the entity itself.
Should you be your own Nevada Registered Agent?
There are reasons that many LLC owners prefer to use a commercial registered agent service instead of being their own agent, such as:
- Availability – A registered agent needs to generally be available at the principal address during normal business hours. This limits the business owner’s ability to travel and otherwise be out of the office.
- Avoiding Embarrassment – If you serve as your own registered agent and a lawsuit is filed against the business, you could have a situation in which papers are served to you at your office in front of clients. That could be both embarrassing and damaging to the business.
- Penalties and Fees – By not continuously maintaining a current registered agent, the LLC may be responsible for penalties and fees, in addition to the potential for administrative dissolution.
How is a Nevada Registered Agent Appointed?
You’ll need to name your registered agent when you complete the official paperwork to form your LLC, so you’ll need to decide who your registered agent or registered agent service will be before you start that process. Of course, you need to be sure to inform whomever you’re appointing and get their permission to serve in that role.
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