How to Choose a Registered Agent
Choosing your company’s registered agent is a super important step in the business formation process. Just like with other vital decisions—such as choosing an entity type, or the company’s name, or whether the company will be taxed as a pass-through or detached entity—making the wrong choice can harshly damage the business.
The benefits of having a registered agent
The need to employ and continually maintain a registered agent, and to inform the state in a timely manner if either the registered agent or its address changes. The changes are required by law. The states may execute penalties for failure to comply. Aside from those constitutional penalties, not having a capable registered agent can lead to other negative consequences such as default judgments if complaints are not answered in time, or a loss of good standing if an annual report is not filed or franchise taxes paid in a proper manner.
What to look for when choosing a registered agent
Among other things, your registered agent should be trustworthy, accurate and consistent. Your registered agent should:
- always be available (if possibly physically) present at the registered office during regular business hours. This ensures of any hand-delivered legal documents get proper attention.
- know your state’s business entity and agreement rules. Each state’s rules differ.
- have industrial trained staff with expert knowledge on how to properly handle and forward SOP papers.
- have state-of-the-art processes in place to provide crucial documents to you, and to follow-up with you regarding delivery.
- have offices in the states where the organization may expand into as you will be required to have a registered agent in order to register to do business in those states.
Your registered agent should be someone who should ideally always be physically present at the registered office during normal business hours. Having a professional Registered Agent makes sure that things such as personal emergencies, vacations, business trips, and meetings never leave your company without this physical presence. Keep in mind, a lawsuit can go against you, even if your registered agent is not available to receive the said service. You may lose the opportunity to defend and protect yourself in court or incur extra legal fees.
In addition to the registered agent’s statutory responsibilities of receiving and forwarding documents, professional service companies often offer a full range of services for LLCs, corporations, and other types of business entities to assist them with their compliance needs.
The right professional services company can assist you in staying in compliance and make sure all of your documents are handled correctly.
Conclusion
As you can see, it matters who you opt for as the designated registered agent for your LLC or corporation. Having the proper and correct registered agent for your company helps you keep your business entity compliance in good shape – and your business in good standing.
