Starting a small business involves numerous decisions and can be overwhelming when navigating the legal landscape.
One Important aspect you shouldn’t overlook is hiring registered agent services. Sometimes misunderstood or undervalued, these services are essential to keeping your company compliant with state laws and avoiding unnecessary legal pitfalls.
Scroll down to learn more about registered agent service companies for small business.
What is a registered agent?
A registered agent is someone or entity assigned to handle crucial legal, tax, and government correspondence regarding your company. For example, they receive state communications regarding crucial filings and organizational changes.
On behalf of your company, the registered agent is also in charge of receiving salary garnishment and notices of a lawsuit (also known as “service of process”). Designating a registered agent, also known as a resident agent, statutory agent, or agent for service of process, is a requirement of the formation process in every state when forming a business (such as a corporation or LLC). You must designate a registered agent based in the state where you register to conduct business (foreign qualified).
The registered agents are valuable business resources. They offer numerous benefits to your small business, such as:
Accept Service of Process
Having an additional layer of privacy is one of the significant advantages of dealing with a registered agent. For example, you might receive legal documentation if your business is sued. A registered agent would take over to accept service-of-process documents on your company’s behalf during any legal action, preventing this from occurring in front of clients and staff and possibly harming your company’s reputation.
After organizing the legal paperwork, they discreetly give it to you. This ensures that your business stays out of trouble with the law and completes its paperwork promptly.
Registered agents are a point of contact.
Contacts with registered agents are beneficial. In addition to reporting whether the legal entity is in good standing with the state, a registered agent will provide the company with official notices and legal documents. You won’t have to worry about sorting through junk mail or disclosing your address if you use the address of your registered agent.
Registered agents are your 9-5 replacement.
You won’t always be available during regular business hours if you travel frequently or operate remotely in a different time zone. A registered agent service company may ensure you get all the paperwork you need to comply and fulfill yearly fee deadlines.
Can I be my registered agent?
To save money, some entrepreneurs choose to become registered agents. However, there may be several unknowns when acting as your registered agent, such as the following:
- Not knowing which physical address to assign
- Not sure if you’ll be available to receive certain documents during regular work hours
- Concerned about unexpected guests stopping by your home or place of business?
- Missing important due dates for submitting required documentation
- Failure to adhere to existing state and federal regulations
