For most business organizations, licensed agents are mandated by law and are recommended for all new business owners who want to avoid common mistakes by entrepreneurs.
Entrepreneurs searching for a licensed agent with several choices will be met.
A Registered Agent can also be referred to as a resident agent or statutory agent, depending on your state.
This person or organization, irrespective of the terminology, has a particular set of necessary responsibilities and is considered to be the official point of contact.
Read on for crucial considerations for finding a licensed agent if you are planning the next business structure.
1. Licensed Agent Duties
Registered agents, whether a person or a corporation, have a specified position to help you maintain compliance with government rules and regulations.
Your registered agent, on behalf of your company, receives all official correspondence and is responsible for notifying you of it.
As a gatekeeper for all legal notifications, entrepreneurs should think of a registered agent.
Prior to hitting your desk, extremely confidential tax forms, legal records, official letters from government departments and lawsuit notices all filter through the registered agent.
Moreover when you transfer or add an office location, professional registered agents can file updates with the state as well as change your contact details.
These are only a handful of the legislative agents’ many duties.
2. Specifications for becoming a registered agent
No matter which word is used in your state to describe a registered agent, criteria are reasonably consistent across the U.S. Entrepreneurs should remember that to be a registered agent, there are no special certifications or licenses required.
States only require licensed agents to maintain a physical residence or office space in the state where your company has been registered.
Furthermore, they must be legal residents of the state and be willing to accept legal notifications like those listed above during regular business hours.
Rather clearly, this means that entrepreneurs meeting these requirements will appoint themselves as registered agents as the official point of contact for their enterprises.
3. What services should be offered by your Registered Agent
You can find licensed agents that differ in the level of services they offer, apart from meeting state-mandated criteria.
Document processing time, communication strategy, access to professional resources and even their ability to establish relationships should be considered by entrepreneurs.
Of course, this would affect the cost of services for licensed agents.
The value that a licensed agent offers, however should be measured by entrepreneurs.
Take the urgency that legal documents command, for example.
To answer questions, you need a licensed agent who handles the paperwork easily, interacts efficiently and offers access to lawyers or CPAs.
Reading reviews of services from registered agents can help entrepreneurs decide on the best match for their business.
4. Recruit a registered agent, or do that yourself?
There is no complexity in the roles and qualifications for becoming a licensed agent.
Saving a few dollars and DIY could be appealing for a young business person.
You may, after all, nominate yourself, a staff member, or someone from your family to serve as a registered business agent.
What is vital to remember is that the official point of contact for your company is a registered agent.
To accept notifications from the state, he or she must be available from 9:00 am to 5:00 pm Monday through Friday.
Regardless of who you nominate, if that individual is unavailable, you, the entrepreneur, will be kept legally responsible for the details.
Hiring a trustworthy registered agent removes this opportunity and enables you to concentrate on the business.
5. Find a Registered Agent for Many States
As the company expands, you will need to find registered in-state agents where the company has a connection.
This way, inside the state where your company does business, any legal or tax records may be served.
Of course, extending to multiple states would enable you to have multiple locations with a registered agent. Or, with one agent from each territory, you can function.
Your company would have a lower chance of losing substantial records, incurring penalties or sacrificing a “good standing” status within the state with the correct setup in several states.
When looking for a registered agent operation, bear in mind your multi-state locations.
Whether hiring a specialist or taking the DIY method, entrepreneurs can discover that it is not a hard process to find a registered agent.
However, prior to determining which approach to take, it is necessary to consider the roles and qualifications for registered agents.
Brick and mortar small companies or national organizations may be firms offering these services.
Furthermore many licensed agents only have an online presence.
The DIY strategy is within reach, but it has some pitfalls that entrepreneurs should carefully consider.
Moreover when extending your company across boundaries, you may need a licensed agent for multiple states.
While finding a registered agent for your company, consider these factors.