Of all the small businesses in the US, 43% are limited liability companies (LLCs). The popularity of such a business structure may have you feeling confident about choosing the same path. However, you don’t know much about forming an LLC, and you’re not sure what to do..
You might’ve heard some terms thrown around, such as “LLC organizer” and “registered agent.” They may sound like the same thing, but they’re not, and it’s important to know the difference.
So what is an LLC organizer, and how is it different from a registered agent? Plus, which one do you need? Find out by reading this article.
What Is an Organizer of an LLC?
An LLC organizer can be an individual or an entity. They mainly prepare, sign, and file the necessary formation documents with the state government, such as the articles of organization (also known as the certificate of formation in some states). This means that their role is a temporary one, as there’s nothing else they must do after getting your LLC through its formation stage.
There are many people who can be an LLC organizer. As the business owner, you can choose to take on this role yourself. Otherwise, you can have another LLC member be the organizer, or a third party, such as an adult friend or family member, attorney, accountant, or business formation company.
Most people like to go with the last option. This is because a company like Business Anywhere can provide comprehensive business registration services so you don’t have to worry about a thing. Plus, this option is much more affordable than going with an attorney or accountant.
What’s a Registered Agent?
A registered agent can also be an individual or an entity. They’re responsible for receiving all government documents on your LLC’s behalf. Their main duty is to make sure you get these correspondences in a timely fashion, as otherwise, you risk legal consequences.
The requirements for a registered agent are similar to those for an LLC organizer, including the fact that you can be your own registered agent. The person or entity must be an adult, and can be an LLC member, friend, family member, or a third party. However, they must also have an address in the state and be available during business hours to receive said documents for you.
We at Business Anywhere also have registered agent services. We’ll handle all administrative tasks so there’s less of a burden on you. Also, if you haven’t created an LLC yet, you’ll get a year of our registered agent services for free if you have us register your company.
Registered Agent vs Organizer
There may be many similarities, but the difference between a registered agent and an organizer is very distinct.
To review, here are the things they have in common:
- Can be the business owner, another LLC member, or a third party
- Can sign and file the articles of organization
- Doesn’t have ownership stake based solely on their roles
The key difference is that an LLC organizer doesn’t have an obligation to the company after formation’s finished. On the other hand, the registered agent will be in the LLC’s service for as long as the company’s doors are open, or until they decide to switch RAs if they wish.
Most likely, you’ll need both experts to get your LLC up and running. But luckily, companies such as Business Anywhere can fulfill multiple roles without costing you a fortune.
Can the Organizer of an LLC Be the Registered Agent?
The above section might have this question popping up in your head. The answer is yes, one person or entity can be both the LLC organizer and the registered agent simultaneously.
This technically means you can take on both roles yourself. However, this isn’t worth doing at all.
As a small business owner, you’re probably already overwhelmed with many other duties. The last thing you need is to learn new things and pile more onto your plate. For a reasonable fee, you can offload those tasks to us and focus on running your business and pursuing your true passion.
Pick a Qualified LLC Organizer for Your Company
To start your company, you’ll need an LLC organizer. You can accept this responsibility, although it isn’t recommended. Many entrepreneurs opt to have their friends, family members, attorneys, or accountants be their LLC organizers instead.
However, the best choice is to work with a business registration services company, such as Business Anywhere. We’ve got the knowledge and experience to set up your LLC with ease and speed.
Sign up with us now if you’re interested in our services. Leave all the administrative work to us while you build your company from the ground up.
