You have a lot on your plate when starting a new company. Aside from choosing a business name, you must also determine the appropriate legal structure.
If you’ve settled on a limited liability company (LLC), you’ve made a good choice. This structure offers many advantages for enterprises still testing out the waters.
The next best step is usually to get a registered agent.
But why is that? Who are they, and what can they do to help your company stay on the right track?
If you’re seeking answers to these questions, here’s what you need to know.
What Is A Registered Agent?
A registered agent refers to a person or entity that acts as the point of contact between your company and the authorities. They’re authorized to represent your organization and get into official transactions on your behalf.
You must ensure they follow key requirements to be the ideal registered agent for your limited liability company. These include the following:
The agent should be located in the same state as your business. This means they’re mandated to provide a physical address and be physically present in the location during standard business hours.
If the registered agent is a business entity, it must be a company registered in the same state as your business and is in good standing.
If the agent is a person, that individual’s name and physical address should be provided.
The agent’s physical address should be a physical street address, not just a P.O. box.
These are the standard requirements for appointing a registered agent for your company. Since many states have specific laws about registered agents, check your local regulatory boards to ensure your prospective choices follow the guidelines.
Having a registered agent is just one of many things you need to cover when establishing an LLC. More challenges lie ahead, especially if you need help knowing where to begin.
Fortunately, you can always hire an LLC formation service provider for guidance. To find the best options for your business, you can check some online resources like the LegalZoom review for LLC for more information.
What Do They Do For Your Company?
As mentioned, a registered agent is a representative who handles your company’s official transactions with the authorities. They can help your business in the following ways:
1. Handle Official Mail Duties
As a point-of-contact, a registered agent can handle official mail duties on behalf of your company. With all the business matters that require your attention, it can be a burden to sift through urgent documentation regularly. It can be time-consuming, and there’s a good chance you’ll miss crucial correspondence occasionally.
In light of this, a registered agent can save you a lot of trouble. When you have one by your side, you can ensure all essential documentation and correspondence is handled and relayed properly without delay.
2. Receive Service Of Process
Aside from handling the company’s official mail duties, a registered agent can aid you in the service of process. It refers to the procedure wherein a person filing a lawsuit provides the other party being sued with a notice of the lawsuit.
If your company is the defendant or the party being sued by another person, a registered agent will be responsible for receiving the service of process. They can ensure that the legal documents end up in the hands of someone who can file a timely response on your behalf.
Consequently, you can avoid losing a lot of money in default judgments, attorney’s fees, and other legal expenses.
3. Take Care Of Correspondence During Normal Business Hours
If you operate your business outside the usual schedule, don’t work in a fixed location, or are out of the office most of the time, you need a registered agent to take care of and receive business correspondence during regular business hours. They must be available during business hours to accept essential documents on your behalf. That way, you won’t miss vital communications.
4. Organize All Documents In One Place
Dealing with business documents can take time and effort. Because of this, you need a registered agent to ensure all are in one place.
When such files stay organized, you can easily and quickly track all of them. In turn, it ensures you comply with state regulations and avoid trouble due to miscommunication later.
5. Provide You With Privacy In Communications
When you have a registered agent, you can use their physical address on publicly available records and government websites. This is especially helpful if you maintain a home-based business and don’t want to disrupt your privacy at home.
Since the agent’s physical address is a matter of public record, all documents will be delivered to their address instead of yours. This offers a modicum of protection for your LLC.
6. Help With Out-Of-State Expansion
A registered agent is also helpful for an out-of-state business expansion. They’ll handle the groundwork for your LLC formation and help ensure you have the documents to grow your business out of the state.
However, hiring a registered agent in the state where you want to establish a new location is essential. Only that way can they provide proper representation without any legal trouble.
An Essential Part Of Your Business
With all these facts in mind, it’s clear that you must have a good registered agent to keep your LLC on track. Remember the information above to know what to look for when choosing the ideal candidate. With their help, you can stay on top of your operations and focus on building your enterprise.
