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Why Do You Need A Registered Agent and How to Select the Right One

Maria Garcia by Maria Garcia
June 25, 2020
Why Do You Need A Registered Agent and How to Select the Right One
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A registered agent service is the gatekeeper of your business, providing you with the most relevant information and advice on how to handle various state requirements.

What does a Registered Agent Do?

From your initial idea of bringing a product or service to the market, many steps are required from you as a business owner before you establish a successful company. Some of them you can do on your own, but others require that you select a professional service to do them on your behalf.

If you need help with state legal documents, read the TRUic guide to understand what is a registered agent and check below why it will be good to hire one for your company.

What does a Registered Agent Do?

A registered agent, also known as a statutory agent or resident agent, is an individual or a professional service entity acting as the main point of contact with the state on behalf of your company. A registered agent is appointed by your company to deal with the paperwork needed for the state, like receiving federal and state tax and legal documents, government correspondence, compliance documents, and service of process.

In most states, it is obligatory to select a registered agent when you form your company. They take on tasks you cannot do on your own and ensure you meet all compliance criteria and document deadlines. The registered agent that you have selected must be located in the same state as your business.

Why Do You Need a Registered Agent?

Apart from the fact that it is required in many states, a registered agent acts as the gatekeeper of your business. The main role of a registered agent is to help you to maintain compliance by notifying you of legal notices or sending annual reporting reminders. On behalf of your business, an agent will receive:

  • Government correspondence
  • Tax and legal documents
  • Service of Process

Also, a registered agent will give you valuable information on which actions are needed to resolve any potential problems, ensuring that you complete them in the expected timeframe.

What Are The Benefits of Using a Registered Agent Service?

Registered agent services offer several advantages:

Stay up-to-date on state requirements

When you have a registered agent, you can be sure that you won’t miss any deadline. You will always be informed about the official state requirements, annual reports filings, and about changes or new procedures.

Nothing will be missing

Also, they will keep copies of all your important documents in case something unpredictable happens. This will save you time and you won’t feel stressed that you will receive legal fees or lawsuits if you miss any deadlines.

Additional support

A registered agent service can also help you with other things, like finding an accountant or a legal representative. Also, you will always have additional support if your business is facing a problem, or you have any questions.

More time to focus on your business

By using a registered agent service, you will be able to focus on growing your business. You won’t have to worry about missing important documents or deadlines. That means more time to think about how to lead and grow your business without any fear that something unpredictable will happen.

Taking care of your privacy

When you are using registered agent services, it is their address that will be published in public, not yours. In some cases, this is the only physical address a business may have.

How to Choose the Right Registered Agent Service?

If by reading all the above you have decided to hire a registered agent service, the question you may have is “How do I choose the right one?”

There is no right or wrong answer to this question. Everything depends on your business, the services that you need, and what you expect to receive from a registered agent service. The tips below can help you to make the final decision:

  • To be sure that you are on the right track, check if a registered agent that you have shortlisted is officially registered in the state where your business operates.
  • Read the reviews on the registered agents in your area and take note of the comments made by others using their services.
  • Be sure to select a registered agent who will be available to answer any question you may have and provide reliable customer service.
  • If you want to form a company in another state, make sure you have selected a national registered agent service who will be able to provide you with services in any of the 50 states.

 

Maria Garcia
Maria Garcia
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