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Delaware Registered Agents for Corporations and LLCs
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Delaware Registered Agents for Corporations and LLCs
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When you incorporate a business, you choose between a Corporation and an LLC. Both are legal entities and incorporated businesses require a registered agent. Delaware is one of the states that require a registered agent. There are many different types of registered agents, but the law typically requires one in the state where you are incorporating your business.
Your business tax year is external
Your business tax year is the 12-month period that your business reports to the IRS. This is different from the fiscal year of a business, which is typically the 12-month period that is reported to your shareholders and yourself. While you may be reporting to the IRS on your business’s fiscal year, there’s no reason why you shouldn’t also report on your business’s calendar year.
Corporations and LLCs are popular types of incorporated businesses
One of the major differences between corporations and LLCs is their level of regulation. Corporations have a more rigid operating structure and more reporting requirements. LLCs are less regulated and do not require the appointment of board members and officers. However, some investors are hesitant to invest in LLCs.
While an LLC is the easiest and most cost-effective type of incorporated business, it does not provide the same amount of protection for the owner. For maximum asset protection, a business should form a C corporation or S corporation. These entities are also taxed differently from LLCs.
Another difference between LLCs and corporations is that an LLC is a pass-through entity. This means that the owners of an LLC pay their personal taxes on the profits of the business. In contrast, a corporation pays a corporate tax rate but does not have to pay self-employment taxes. In addition, LLCs do not have shareholders and directors, and their owners have limited liability.
Choosing a registered agent
Selecting a registered agent is an important aspect of creating a professional business presence. Your agent will be the point of contact for all official correspondence and will ensure timely delivery of important documents. Choosing a registered agent is also essential if you intend to expand your business to another state. Using a registered agent will eliminate the need to sort through junk mail and help you maintain a work-life balance.
It is important to choose a registered agent who is located in the same state as your business. You also need a person who can be physically present at your registered office during normal business hours. Your registered agent can be you, an employee, a lawyer, trusted family member, or friend. You can even hire a registered agent service to manage the filing process for you.