What is the purpose of having a Registered Agent?
A registered agent is required for all corporations, limited liability companies, and other business organisations. Even more often than not, it is mandated by law in numerous instances.
A registered agent is required for all corporations, limited liability companies, and other business organisations. Even more often than not, it is mandated by law in numerous instances.
Business entities such as limited liability companies (LLCs) and corporations are required to choose a registered agent who will receive legal correspondence and other papers on their behalf on behalf of the company. Some small companies appoint an owner or an employee to serve as the registered agent on their behalf. While a registered agent service provider is an excellent option in many instances, it is not always the most cost effective.
What is the function of a Registered Agent?
Registered agents are those who will receive legal and other papers on your behalf, such as subpoenas, regulatory and tax notifications, as well as communication from the government and other organisations.
In several jurisdictions, lawsuits must be served in person before they may be dismissed. By using registered agents, you can ensure that the procedure is more clear and organised.
Having your registered agent’s name and address on the public record lets those who aren’t familiar with your business know who to send documents to. Furthermore, you may be certain that any legal notifications that your company may get will be sent to a single point of contact.
Who is required to have a Registered Agent?
If you have a limited liability company, corporation, or other formal business entity, you must have a registered agent. Individual proprietorships and general partnerships do not need the services of a registered agent.
When you submit the papers for your company incorporation with your state, you must choose a registered agent. If the name or address of your agent changes in the future, you must submit an extra form with the state to have the state’s records updated. It is mandatory for you to have a registered agent in each state where your firm is authorised to do business.
What is the role of a Registered Agent?
There is just one task that a registered agent is responsible for: receiving papers on behalf of the company and forwarding them to the relevant person inside the company. Following the selection of a registered agent, you may instruct the agent on whom to inform in the event that they receive lawsuits or other legal documentation.
Although the agent’s job seems straightforward, lawsuits, subpoenas, and notifications are often subject to tight time constraints. Failure to meet deadlines may result in legal and financial repercussions. Consequently, having an agent who is accountable and who can be relied upon to provide information in a timely manner is essential.
Who is eligible to serve as a registered agent for a limited liability company or corporation?
Registered agents are subject to just a few limitations, and the rules governing them may differ somewhat from one state to another. In general, your agent may be anybody who meets the following criteria:
- Is at least eighteen years of age
- Possesses a physical address inside the state
- During business hours, he or she is physically present at that location.
- It is also possible for your agent to be a corporation that has been registered with your state to offer registered agent services. Your company is not permitted to operate as its own agent.
Your registered agent for your company may be anybody you want, including yourself, your spouse, or an employee. However, bear in mind that your agent must be someone who is physically present at the stated location during business hours, seven days a week.
It’s not a smart idea to hire a registered agent if you’re going to be travelling, telecommuting, working part-time, or holding off-site meetings often.
In what situations should you use a registered agent service?
Many small company owners operate as their own registered agent, while others choose a friend, family member, or employee to serve as their representative. Although it saves money, it is not always a wise decision. When selecting a registered agent, there are many advantages to paying for a registered agent service rather to hiring one on your own:
Privacy. Customers, clients, and coworkers may be embarrassed if a legal action is served on you or an employee who is acting as the company’s registered agent. Additionally, the agent’s address is available for public inspection, which may be a source of worry if you operate a home-based company or want to choose your spouse as your agent.
Consistency. If you designate an individual as your registered agent, you’ll need to make any necessary adjustments to your registered agent information if the individual’s identity or mailing address changes over time. Few small business owners are aware of the need of maintaining a registered agent, yet failing to do so may result in your company losing its good standing with the state.
Knowing that the task will be completed correctly. Registered agent services are knowledgeable and competent, increasing the likelihood that critical papers will reach their intended recipients as soon as possible.
It may be inconvenient to have several registered agents if you do business in more than one state. A service may represent you in many places at the same time.
When you’re establishing a new company, selecting a registered agent may seem like a small detail to worry about. An agent, on the other hand, plays an essential function. Make certain that your agent understands your requirements and is capable of doing the task in a timely and professional manner.