As you move through the journey of starting your own business, you’ve most likely already noticed that you will be needing a registered agent. Being told you need something and truly understanding why you need something are two completely different things. Why don’t we talk about a few reasons why a registered agent is a necessary addition to your company.
“So, I know I need a registered agent, but I don’t have a clue as to what that actually is.”
Simply put, a registered agent is someone who has been put in charge of receiving relevant legal documents or notifications on behalf of your company. They will also handle any lawsuits you may encounter and will keep you up to date on any deadlines your business is facing.
A registered agent must be eighteen years old or older, have a physical address, not a P.O. box, located within the state your company operates in, and should always be available during all regular business hours. You can either place yourself in this role, hire another individual, or take advantage of a local register agent service.
Your registered agent will serve as your business’s official point of communication with the government. The government requires that all companies must have a registered agent so that there will always be a way to contact your company in the event of a lawsuit or simply to deliver relevant documents. Whatever state your company is operating in will send information to your registered agent regarding deadlines, compliance, and tax filing details.
Physical Office Space
Some LLCs do not operate out of a brick-and-mortar storefront. Instead, many will not have a physical location for their company to operate out of. This leaves the business’s owner between a rock and a hard place. They either find a physical location for their company or find a way to use another address. If you choose to be your one registered agent, you’ll need to use your home address. Some might find this uncomfortable or worrisome, so using a registered agent service who will place their company’s address on your legal documents is rather useful.
Someone Is Always Around
Just because you’ve decided to take the day off, which is your wonderful privilege as a business owner, does not mean that your company’s legal affairs come to a complete halt. Your registered agent should uphold a regular business schedule, whatever that looks like for your area, and should always be available to receive any type of notifications or urgent messages on behalf of your company. By having a registered agent, you guarantee that nothing will be overlooked by the fault of limited availability. You’ll also be freeing up your own time and, in turn, allowing you to work on bettering your company.
“What happens if I fail to have a registered agent?”
Failure to assign your company a registered agent could result in unfortunate penalties and charges. Your company will also lose any good-standing it might have previously had with the state, and your company could be prevented from joining any legal contracts in the future. Reinstatement is just as much, if not more, of a hurdle than allocating your registered agent in the first place would have been.
In short, you will want to ensure that, as soon as your company files its Articles of Incorporation, you have already decided upon your registered agent. It might be a difficult or painstaking process, but doing it wrong, or just not doing it at all, will come back to bite you and your company in the future. If you’ve found yourself in a position where you need a registered agent immediately and you are looking to for more information, you can learn more on TRUiC’s website as they explain in depth what a registered agent is, who can be one, the best companies, and the consequences of not having an RA.