Under United States business law, every business entity must have a registered agent. Typically, the registered agent is an individual or company. Its address must be in the state of registration, and it cannot be a P.O. box.
Choosing an effective professional registered agent is one of the most important decisions for active business entities. Trust CT Corporation to promptly relay legal documents and government correspondence on your behalf.
Service of Process
Regardless of what business you operate, you must comply with the laws in each state where your company does business. One of those laws requires that you have a person or business willing to accept service of process on your behalf in the event of a lawsuit. This person is called a registered agent. In some states, it’s also referred to as an agent for service of process or a statutory agent.
Typically, your registered agent must have a physical address in the state where you register your business. The agent must be available during standard business hours to receive legal papers and/or official mail for your business. Many businesses hire a professional registered agent services firm to handle this responsibility. They charge an annual fee and guarantee that important documents will be delivered to the right person in a timely manner. The better services also scan and make those documents quickly available to you online.
Notices to the Company
While it’s possible to have someone you know act as your registered agent, many businesses opt to hire a professional service for consistency and convenience. This also makes it easier to keep track of compliance and renewals since the same company handles your state filings and other important documents.
Hiring a service provides you with a layer of privacy that you don’t get if you serve as your own agent. This means that if you’re served with a lawsuit or other legal action, you won’t be notified in front of your customers and employees at the place of business.
A good registered agent service will also always be there to receive time-sensitive paperwork for you, keeping you on top of deadlines and compliance obligations. This can save you money in the long run by avoiding fines or other negative consequences for not filing on time. Additionally, it can save you a lot of sifting through junk mail at home or in the office.
Taxes
If you have a business that operates in multiple states, or if you plan to expand into new markets, consider using a registered agent service that provides services nationwide. This will make it easier to stay on top of the many filing deadlines and requirements that vary from state to state.
You can also choose a service that provides privacy protections, which may be important for a business that does business in public or with customers who might feel uncomfortable with legal action being served at their home or office. This also prevents unwanted solicitations and junk mail to your business.
If you choose to act as your own registered agent, you will need to be available during standard business hours to receive documents. This can be inconvenient if you operate your business outside normal business hours or travel extensively. Commercial registered agents can save you time and stress by receiving your legal and tax paperwork and forwarding it to you promptly.
Compliance
Your registered agent must be available to receive legal and time-sensitive compliance documents for your company. They must also be able to respond promptly and communicate effectively with you, so that you can address any issues.
Your business’s registered agent should be a person or company who is trustworthy and reliable, so that you can trust them to quickly relay any lawsuits, subpoenas, or notices to the right person at your company. In addition, if you plan on expanding your business into other states, it’s a good idea to choose a registered agent service that provides services nationwide.
This will simplify the process of keeping track of state filing deadlines and adherence to industry regulations. In addition, the top registered agent companies offer customer support that is prompt, responsive, and knowledgeable. For example, Northwest has a team of former accountants and lawyers who can talk you through any compliance issues. Their prices are competitive, and they have more than 3,000 positive reviews online.