Is Using a Registered Agency Necessary?

By Joseph West

Jun 26, 2020 06:05 PM EDT

Online Business(TRUIC) (Credit: Getty Image)

Hiring a professional registered agent as you start up your new business can offer you many benefits. They are experienced and know how to receive and handle all your LLCs paperwork discreetly, while also making sure that you are notified of any important deadlines. One of their most important roles is that there is always someone available to receive these important documents during business hours.

There are other options available, and these include appointing yourself or someone else, but it is essential that whoever you appoint has a physical address in the state, is over 18 years of age, and is always available during office hours. If you are very busy organizing your new enterprise, and even as it grows, it may not always be feasible for you to be available.

Hiring a registered agent in your state is very easy and most also offer many other services, including business formation, compliance, can introduce you to legal and accounting professionals, and even offer business advice.

Read here about all you need to know about hiring a registered agent.

Benefits of using a professional registered agent

Focus all your energy on growing your business and let your appointed professional registered agent worry about everything else.

Law compliance

Each state has several requirements, and their reminders are sent to you by way of mail to the address you declared in your business formation documents. If you are not available to receive them, they may be lost or misplaced. Also, if you are not made aware of these in time, your business may be charged with a penalty or you may need to pay hefty legal fees to avoid losing your compliance status and being forced to close your business.

All corporate documents received by your registered agent service are scanned and forwarded to you, but most importantly, they are backed up, so that if you have lost an original to theft, fire, or a natural disaster, they will still be available.

Accounting and legal assistance

Professional registered agents can be invaluable if you need to find state-specific professionals like accountants or attorneys. Many have them in-office, but even those that don't can advise you on the best professionals in your state.

Focus on your business

You don't need to stress about any of your important LLC documents. These are automatically received by them and stored safely. All your business mail is kept away from prying eyes and you only receive personal mail at your home or business.

If you run into any type of problem, registered agents offer all types of additional business support that will help you overcome them.

Your home address remains private

Since only your registered agent's address appears on public record, no one will know where your office or home is. This is especially important if you work from home. If you are ever served with a lawsuit, the papers go directly to them, and no one else will know about the service process. The same applies to any other unwelcome mail, which businesses are often bombarded with.

Your business becomes more flexible

Your registered agent is available daily during working hours to receive all your mail and you can choose when you are going to be present at your business. You will be free to attend meetings and can even attend to business in other cities or out-of-state, without worrying that you will have missed any important notifications.

If you are forming branches of your business in other states, you can choose a registered agent that offers their services in other states too. Otherwise, you must appoint a different registered agent in each state. These are known as national registered agent services, and they can also help you form LLCs in any of the 50 states.

The criteria you want to look for when choosing a registered agent should include compliance management, document management, availability to receive documents, willingness to answer any questions from you, and national coverage.

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