If you have formed a business entity, such as an LLC, corporation, or limited liability partnership, you need to designate a registered agent.
A registered agent receives and forwards legal documents, tax notices and official communications on behalf of your business.
A registered agent is typically an individual or company that has a physical address in the state in which your business is registered. It’s important that this person is available during normal business hours to accept and respond to all legal paperwork on your behalf.
Legal Requirements
Business entities, such as LLCs and corporations, have to name a registered agent when they form. This person or service will receive legal papers, tax notices, and other important paperwork.
This individual or service can be a corporation, limited liability company (LLC), or an individual who resides in the state where the business is registered to do business. They must have a physical address in the state where the business is registered, as well as be available to accept important mail and official documents during normal business hours.
In addition, the registered agent must be available to respond to any lawsuits that are filed against your business. This is important because the business will be responsible for paying any judgments or penalties that may result from being served with the lawsuit.
In most states, a registered agent can be an individual or a professional service. These professional services often charge a fee to serve as the registered agent for hundreds or even thousands of businesses in the state.
Benefits
If you have a business entity, like an LLC, partnership, or corporation, you must have a registered agent. A registered agent accepts mail and legal documents on behalf of a business, and can help you stay in compliance with state laws and regulations.
A registered agent can also assist you with filing annual reports and updating your business information with the state. They can also help you resolve conflicts with competitors and answer any questions that may arise during the course of your business.
The most important reason to have a registered agent is that it saves you time and money. A registered agent service will accept all mail and documents from the state on your behalf, send them to you, and notify you when it’s time to file any important paperwork or deadlines.
Costs
The costs associated with being a registered agent vary from company to company, but usually range from $99 to $300 per year. Some companies offer low introductory rates, while others bundle these services with other services, such as LLC formation.
One of the biggest benefits of using a registered agent service is that they will receive and accept legal documents for you, on your behalf, in the state where you conduct business. This can save you time and money by ensuring that important state filings and notifications are received and processed on time, which can help avoid penalties or other issues.
If you operate a small business, you may not have someone on staff who can be available during normal office hours to accept important documents. If you travel frequently, are unable to keep offices open all day long or do not have a permanent worksite, a registered agent service can be an excellent option.
Another benefit of using a registered agent service is that it can handle your time-sensitive business documents for you, ensuring that they are received on time and in the right format. You will have peace of mind knowing that your sensitive information is protected, and you can focus on growing your business.
Options
A registered agent is a vital part of any LLC or corporation, and they play a crucial role in helping you comply with your state’s business registration requirements. There are many options available, including using yourself or an employee as your official representative, hiring a commercial registered agent service or even choosing a trusted friend or relative to fill the role.
Choosing the right agent for your unique needs is an ongoing process and one that will pay dividends in the future. There are also a large number of online resources available to help you make an informed decision about the best choice for your business.
The most notable and obvious choice is to find a professional registered agent who can provide the services that your company requires at a price you can afford. Check out our guide to choosing the best registered agent for your business or get in touch with our friendly team today to discuss your options.