Legally created business entities, like corporations and LLCs, must choose a person or organization to act as their registered agent in the state where they are incorporated.
A procedure known as foreign qualification is needed when registering to do business. Businesses wishing to operate in another state must also follow this criterion. This article will dissect why you should use a registered agent service provider.
Understanding a Registered Agent
Many entrepreneurs may first wonder what a registered agent is and then consider if they need one. Yes, in response to both inquiries, you need one!
A registered agent is any person or entity permitted to accept processes (legal documents and official notices) on behalf of a business. The business must select a registered agent who keeps a physical address in the state where the company is permitted to conduct business. Why is a registered agent necessary for your new business? Continue reading.
Benefits of Using the Service of a Registered Agent
Start-ups are not the only people who need the services of a registered agent. Below are the advantages of using a registered agent.
Consistent accessibility
A registered agent must be reachable during regular business hours to accept legal documents and other formal correspondence on behalf of the LLC. If you lack a staff member or office assigned to this duty, a registered agent service may guarantee you never overlook critical alerts.
A registered agent service is available during regular business hours for an annual cost of $50 to $200. This is an affordable alternative for business owners who may not always be accessible or who lack the funds for full-time personnel.
Confidentiality
If you choose yourself as your company’s registered agent, your residential address will most likely be included as the point of contact. This makes your home address available to the public, so anyone wishing to formally contact your company (usually through loads of spam emails) may locate it. This worries some individuals, but it doesn’t bother others.
However, if this idea disturbs you, you can engage a registered agent; the agent’s address would be disclosed on public record, not yours. Your personal information may be anywhere for all time, given the prevalence of “Big Data” websites that harvest information from governmental databases, post it online, and/or sell it.
While it might not seem like a huge concern right now, you might not want your home address and name publicly available on the Internet after ten years, as state records are permanent.
Embarrassment
Internal and external branding are crucial in the corporate environment. As an employer, you want the best out of your staff. But it does not look good to be abruptly served with subpoenas or sued at a company-wide meeting. This may cause a chain reaction of conjecture that will divert workers’ attention and lead them to believe something is amiss.
Additionally, embarrassment may come from the outside if the state’s messenger appears when you are speaking with a customer about crucial business. A registered agent is a buffer for you; they know the ideal moment to provide these documents.
Conclusion
A registered agent service is necessary for companies and LLCs to maintain their good standing and continue operating their businesses without encountering compliance problems. Compliance requirements may be labor and time-intensive. It often needs the submission of drawn-out and perhaps perplexing forms that utilize data from several sources. Employing a registered agent service may save time managing your company and ensure you can minimize the danger of non-compliance. This will prevent you from fines and taxes levied by the state. Finally, click here to learn about registered agents closest to you.
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