Registered Agent Requirements for Crypto Startups 101

No government statistics are available about the number of cryptocurrency startups, but 2021 was a record year - CB Insights reported that funding surged to $25 billion, a year-on-year raise of 713%.

Thanks to blockchain technology, cryptocurrency startups have a promising future. However, like all other businesses, you must consider several things before starting your cryptocurrency business.

Before deciding on the best legal entity for your new startup and registering it with the state, you require a clear plan to ensure you understand the startup costs, ongoing expenses, target market, and profit potential.

One of the requirements of having a legal business structure like an LLC is to use the services of a registered agent. Therefore, you designate a registered agent when forming your crypto startup. If you aren’t sure why a registered agent is necessary, read on to find out more about this crypto startup 101.

Services Provided by a Registered Agent

Any business based in the U.S., including crypto startups, needs a registered agent to receive documents from the state or federal governments on their behalf. Notifications they receive on your behalf include service of process (lawsuits), reminders for compliance filings, annual report notifications, tax forms, etc. When the registered agent gets these, they forward them to you to ensure timely action.

You declare the name and address of your registered agent when forming your business and filing its Articles of Organization. That address is the one all official documents go to, ensuring that you are aware of all deadlines and keeping the anonymity of your personal and business addresses.

Why Your Crypto Startup Needs a Registered Agent

All 50 U.S. states require the appointment of a registered agent when forming an LLC. Whether you appoint a registered agent service, a lawyer, a friend, or yourself, you must understand why your crypto startup needs one.

Suppose you cannot receive the crucial notifications mentioned above during regular office hours. Then, the chances are that your startup may miss the opportunity to maintain good standing leading to its dissolution, or you could miss your presence in court for a crucial lawsuit.

Requirement for Registered Agents

All states allow you to appoint yourself as your startup’s registered agent, which won’t cost you anything. However, this requires careful consideration because of several things. First, the address you declare becomes available to the public, meaning all paperwork (even potentially embarrassing ones) is served in front of employees, customers, or family (if you work from home).

Another problem is that you must be available during standard business hours to receive mail at the registered address. If your new business requires you to move around a lot, you cannot become office bound to receive mail.

Furthermore, the state requirements can differ, so familiarize yourself with your state’s specifications. In general, your registered agent must have a physical address in the same state as your LLC, where someone is available to receive mail during standard business hours on working days.

Anyone can become your registered agent, but make sure you choose yours by considering criteria like the type, size, goals, and structure of your crypto startup. A reputable registered agent can meet the scope of any growing business.

Designating a Registered Agent

Follow the formation process for an LLC in your state, and remember to designate your chosen registered agent in the special section of the formation document. The LLC formation document is called the Articles of Organization in most states, but it’s also known as the Certificate of Formation. Failure to designate a registered agent will result in the rejection of your application.

Why Hire a Registered Agent

The small annual fee charged by registered agents provides you with several advantages. These include the time to start and grow your business since you hand off the responsibility of keeping track of critical business documents and notifications.

Furthermore, you have the peace of mind that your documents are in safe hands, your privacy remains uncompromised, and your business stays compliant because you don’t miss important filing dates.

Bottom Line

Registered agent requirements don’t differ for any businesses, including crypto startups. However, Best LLC Services.com recommends choosing the best according to your specific needs because some offer more than just mail services. So, as you prepare to file your LLC for your crypto startup, consider your options and compare prices before choosing a registered agent to help your startup join the ones at the top of the crypto funding chain.