What Is a Registered agent and must you have one?

This guide defines the meaning of a registered agent, the services of a registered agent, the reasons why you might require a registered agent and the ways in which having the right registered agent can do you well in future.

What Is a Registered Agent?

A registered agent is somebody or a business organization who will be awarded the legal papers and official government correspondence on behalf of your company. These records can consist of service of process (notices of a lawsuit), and tax notices, as well as compliance notices, and other communications of the state.

The agent you are registered with is the official contact between your business and the state. All LLCs and corporations are required to include a registered agent in which the business is formed and maintain the same.

So What Is the Job of a Registered Agent?

The main duty of a registered agent is to accept and send important documents regarding legal and government to your business in good time. This makes certain that you know the legal steps, time lines and the compliance requirements.

Registered agents should also have a physical address in the street (not P.O. box) of the state where you have registered your business. During the normal working days, they should be accessible to take into consideration documents in person. This is a condition that aids in having courts and state authorities effectively deliver official notice.

Through the management of such tasks, the work of a registered agent will avoid default judgment, missed deadlines, and administrative fines.

Is Registered Agent requirement present?

Yes. Any LLCs and corporations must have a registered agent in both the state of its creation, and any state where it is registered to be able to conduct business as a foreign entity.

Failure by your business to have a registered agent may result in fines, good standing suspension or even administrative closure of your business. Legal actions also may be taken against you without your knowledge in case legal papers are not delivered in a proper way.

Who Is Authorized to be a Registered Agent?

The eligibility of a registered agent is also state specific to some extent although in most cases the agent shall be:

• At least 18 years old
• Physical presence in the state
• Be present at normal working hours

You have a few options. You may act as your own registered agent, or you may refer another person (e.g. a partner or employee) to act as your registered agent, or you may contract with a professional registered agent service.

As much as it might save on money since you are the registered agent, there are significant disadvantages that cannot be ignored by most business owners.

Advantages and Disadvantages of self-service as a Registered Agent

It is not the most appropriate decision as it is also legally permissible, even though you can serve as your own registered agent in most states.

Absence of privacy is one of the greatest drawbacks. The address of your registered agent will be put on the public record. When you use your home address then it will be found online. This may result in the unwanted mail or even process servers appearing at your doorsteps.

The other issue is availability. You are required to be at regular working hours to get papers. When you are in transit, have odd schedules or you work remotely, you are likely to miss important legal notices.

Professional embarrassment is also a possibility. It is inconvenient and painful to have the lawsuit papers being served to you right before the customers or employees and this is harmful to your business image.

The Advantage of having a Professional Registered Agent

There are a number of benefits of hiring professional registered agent service. First, it offers privacy protection and your personal or business address will not be placed on the public records.

Two, the professional agents are reliable and compliant. They keep track of deadlines, deliver documents in time and tend to remind about annual reports and other documents. These minimize chances of the risk of overlooking vital notices.

Third, the registered agent services are particularly beneficial in case you deal with more than one state. They are able to serve as your registered agent in every jurisdiction making compliance across the states easier.

The legal and administrative safeguarding of a registered agent service is also of low cost to many business owners.

Multi-State Business and Registered Agents

When your LLC or corporation conducts business not in its home state, then most of the times you have to register as a foreign entity in the states where you are doing business. There is also a need to have a registered agent in that state in each foreign registration.

This renders the services of professional registered agents to be of special benefit to expanding business since the service is available in all parts of the country and document management is centralized.

Replacing Your Registered Agent

You may also replace your registered agent any time by submitting a form to the state at a small fee. Ensuring that this information is updated in good time is also necessary so as to eliminate lapses in coverage.

Even with an otherwise law-abiding business, failure to renew your registered agent can mean lack of legal notices and bad standing.

Final Thoughts

A registered agent is much more than a filing requirement, it is a major part of your business legal framework. Regardless of whether you are establishing a new LLC or administering a business, having a trustworthy registered agent is beneficial in safeguarding the business, guaranteeing compliance and in generating peace of mind.

Most business owners prefer to include a professional service that is easily paid a small amount as a registered agent though there are some who prefer doing it as an individual registered agent, which is sometimes a small price to pay in the long run. The selection of an appropriate registered agent enables you to concentrate on business development without breaking the law and being held liable.

Frequently Asked Questions