Although a registered agent of a corporation might be the owner of a firm, it is not regarded an owner. Rather of working as your own registered agent, we propose employing a registered agent service.
In this post, we’ll define a registered agent, who may be one, and the benefits and drawbacks of becoming your own registered agent.
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What Exactly Is a Registered Agent?
A registered agent is the person or organization designated by a firm to receive official government paperwork and other vital papers such as a court summons, tax filings, or letters from the Secretary of State. A registered agent also assists firms in meeting filing deadlines and other regulations.
Who Is Eligible to Be a Registered Agent?
Anyone who meets the state’s standards may be a registered agent. These differ by state, but in general, a registered agent is someone who:
Is at least 18 years old
Has a physical address in the state where the company is created (rather than merely a P.O. box).
Is accessible during regular business hours (in person) (i.e., 8 a.m. to 5 p.m., Monday through Friday)
Should the owner act as a registered agent?
If an owner meets the aforementioned qualifications, they may be a registered agent. Although this method saves money on registered agent fees, there are some hidden charges to be aware of. More specifically:
It will cost you time that you might be spending on company development.
If you fail to respond to a court summons (service of process), a default judgment may be recorded against you.
Failure to be accessible to receive other crucial papers or failing to meet filing deadlines that a registered agent service would notify you of may result in penalties.
The Advantages of Using a Registered Agent Service
Aside from eliminating the aforementioned hidden fees, there are various additional benefits to employing a registered agent service, such as ZenBusines, including:
Observance of the law
Mind-set tranquillity
Flexibility
Privacy
Observance of the Law
Registered agent services assist businesses in meeting state regulations by providing monthly filing reminders. This saves you money on legal expenses, fines, and other penalties. A professional service can help you:
Assist you in locating accountants and legal experts in your state.
Keep duplicates of your company records in case they are lost due to theft, natural catastrophe, or other unforeseen circumstances.
Mind Relaxation
Running a company requires time, energy, and focus. A registered agent service provides you with piece of mind by enabling you to do the following:
Prioritize business expansion.
Maintain a work-life balance by keeping business and personal correspondence separate.
If your company has an issue or has any inquiries, provide more assistance.
Flexibility
A registered agent must be present to receive papers at the location supplied during normal business hours. You may use a registered agent service to:
Maintain flexible working hours. Instead of needing to be accessible from 8 a.m. to 5 p.m. every day, you may choose your own hours.
Create an LLC in one or more additional states. A registered agent must be a resident of the state in which the business is incorporated. You may incorporate an LLC in any of the 50 states by using a nationwide registered agent service.
Privacy
The address of a registered agent is public information, therefore if you operate from home, your home address will be displayed. A registered agent service safeguards your privacy by doing the following:
Keeping a lawsuit from being served on you in front of your family, workers, or customers.
Making their address public rather than yours, which will reduce the quantity of unwanted mail you get.