Most states in the US require legal entities to have a registered agent as part of business formation laws. While it is possible to act as your own agent, there are certain downsides to doing that. In fact, dealing with the paperwork that comes with legal compliance can be quite overwhelming for business owners.
According to Forbes:
“A company that doesn’t maintain a registered agent runs the risks of fines, penalties, and possible default judgments in favor of the other party (in the case of a lawsuit). A business might even be suspended or terminated (administratively dissolved), and not be allowed to conduct business in other states.”
Clearly, having a professional registered agent is the smartest move.
Here are 10 legitimate reasons why you definitely need one:
First and foremost, a registered agent will make the process of regulation compliance much easier. They will immediately inform you about official notices and important documents as they arrive.
More than that, these experts know the requirements and deadlines for each piece of legal paperwork. They will readily handle everything on your behalf. Plus, since they work daily during business hours, you can be sure they will promptly take care of your documents.
As a result, you won’t have to worry about meeting any deadlines. You will be able to avoid costly state fees and penalties that come with late or non-compliance. Your startup business will also remain in good standing with state authorities.
Next, you can handle possible lawsuits in private.
Generally, law enforcers usually deliver Service of Process documents. If you’re like most people, you may not be comfortable with the idea of having officials serving you a summons in public. Just imagine the confusion it would cause among your employees, customers, neighbors, or family members.
Working with a professional agent takes care of that concern.
Authorities will send all legal notices straight to your agent – not to your home or office address. The agent then privately sends you scanned copies of important documents via your email.
3. You will be worry-free as you incorporate in another state
Planning to incorporate in a different state than your home state? A registered agent can be a valuable resource. Your agent, who lives in the state where you are incorporated, will gladly represent your company there.
You’ll definitely need extra help as you conduct legal transactions for your business there. Fortunately, registered agents have physical addresses and they’re always ready to receive documents for their clients. As mentioned above, requirements and deadlines are met in a punctual manner. You won’t have to experience unnecessary delays even if you’re from a separate state.
Let’s face it. None of us like receiving junk mail. Having a designated agent also allows you to avoid that problem.
Registered agents have their addresses available in public records, which means you won’t have to list yours. As such, your agent will be receiving most of your mail, whether it’s from the state or from marketers. You will end up getting way less unsolicited mail in your mailbox than ever before.
Given the same scenario above, you can just imagine the difficulties of operating a business from your garage. For the most part, that also means having to use your home address in official correspondence. Of course, that could lead to certain challenges – such as privacy concerns.
You wouldn’t want to get random people showing up at your front door, right? What’s more, sharing your personal address could potentially expose you to the risk of identity theft.
Keeping your personal address confidential can be possible as you hire a dedicated registered agent. This will allow you to protect yourself and your family members from unwanted visitors.
Got an upcoming business trip? Or a scheduled vacation with the family, maybe? You can enjoy your time without agonizing over upcoming legal letters you might miss while you’re away.
Your agent can be a great advantage, especially if you’re someone who travels often, whether for business or pleasure purposes. They’re always around to receive all your documents and keep you updated. Your company won’t miss vital correspondence and important paperwork will get prioritized.
Without a registered agent, moving to a new address will require you to update your records with the state. You will likewise have to pay the fees that come with that.
If you’re a busy business owner, it can be hard to find time for this.
Of course, the good news is you don’t have to bother with any of that if you have a registered agent. They will continue to receive your mail whether or not your address has been updated yet. As your representative, they can also work on the requirements and settle the filing fees.
Whether you need to relocate your business for practical reasons or expansion purposes, your agent is always prepared to assist.
Necessary legal documents will be scanned and forwarded to your inbox by your agent. You get to keep digital copies, which can greatly simplify your filing process. Retrieving them will be much easier in the future, too, as you store the files online. You can keep copies of your email and back them up in the cloud to be sure.
Doing so helps you decrease clutter in your office.
9. You’ll have more time to grow your startup
With most of the red tape out of the way, you get to devote more time to your business. You can focus on dealing with your clients. You can work on reaching a greater number of your target market.
As a business owner, your time is precious. You wouldn’t want to waste it doing paperwork. So let the experts do the job and focus all of your attention on running your startup.
Finally, you will have a greater work-life balance and peace of mind when you work with a professional registered agent.
Business documents certainly do not have to consume your daily schedule. You can instead choose to spend your precious extra time with loved ones.