A registered agent is a person or company appointed to receive service of process and official mail on behalf of a business. Each state requires registered business bodies (corporations, Limited Liability Companies, Limited Partnerships, etc.) to appoint a registered agent on its formation documents.
Does a business need a registered agent?
A business that is required to have a registered agent, but fails to appoint and maintain one, can face some serious complications. A company that doesn’t manage a registered agent runs the risks of fines, penalties, and possible default judgments in favor of the other party (in the case of a lawsuit). A business might even be suspended or ended (administratively dissolved), and not be allowed to conduct business in other states. Please read why do we need registered agents?
What do registered agents do?
Most state statutes require registered agents to be available during normal office hours (9 to 5) to accept official notices and service of process and notify the responsible party when accepting these legal documents. Professional registered agent services will inform you electronically within minutes of receiving a document on your behalf.
- Inform you when your business’ annual reports are due to the state.
- Provide you with widely business knowledge.
- Free accessories to help you file business forms with the state and track your business’ status.
Registered agent requirements
State statutes require that registered agent fit the following requirements:
- The registered agent must have an office where he can receive and accept service of process.
- In many states, a registered agent must either a resident in the state where he works as a registered agent, or he must have a business that offers registered agent services and maintains an office address in that state (P.O. boxes are not acceptable).
- Be available to accept legal documents and official mail during normal business hours ( 9 to 5).
Advantages of registered agent
The main advantages of a registered agent are given below:
Working with a registered agent creates a layer of privacy between your business and the public because of their information, and not yours is listed on the creation of documents. If you were ever served but working with a registered agent service, they would accept the paperwork on your behalf, ensuring you maintain a sense of privacy.
- Peace of mind
A registered agent service can provide peace of mind, so you can:
Focus on running and increasing your business- You can know that your important business documents will be received and saved. To form an llc yourself is a tedious task. A registered agent will help you to complete all the tedious legal task. The registered agent has the complete information Best Time of Year to Form an LLC and What is the best state to form an LLC?
Keep your personal and business mail separate.
- Compliance with the law
Send you regular reminders for state filings-This will ensure that you stay up to date on all your LLC necessity.
Help you in finding state-specific accountants and legal professionals- Most businesses need accounting or legal assistance at some point during their designing. Here is the list of best state to create an llc. You can take LegalZoom legal help for business or incfile legal service.
Keep backup copies of your company documents-In the case of theft, natural disaster, or other unexpected losses, you will have a backup of all your important organization papers.