If you’ve decided to form a corporation or a limited liability company (LLC), you’ve probably come across the term ‘registered agent.’
A registered agent is an individual or entity whose job is to receive government, legal, and tax correspondence on behalf of the LLC or corporation and relay them to the owner. When registering your business with the state, you need a registered agent as part of the registration requirements.
Here’s more of what you need to know about a registered agent and when you will need one.
What Is A Registered Agent?
A registered agent is a person or a company that serves as the point of contact for business entities like corporations, limited liability companies, limited partnerships, and limited liability partnerships. Through a registered agent, the court, government, and the public can reliably reach out to a corporation or LLC.
However, it’s essential to know that you can’t just hire anyone. The right one for the job should be able to meet the following criteria:
- Age: If they’re an individual, they should be 18 years old and above to become a valid registered agent. e.
- Physical Address: They should have a physical address instead of a P.O. box in the state with which you’ll register your business. They should also be physically present at the address given during business hours.
- Residency Requirement: If a registered agent is an individual, they should be a resident of the state where the registration will happen. If they are an organization, it can be a domestic or foreign company, provided they’re legally authorized to do business in the state.
Aside from these factors, know that laws can vary from state to state. For instance, the state of California doesn’t require corporate agents to have an address but requires an individual agent to have one. So you should also familiarize yourself with the state-specific laws regarding registered agents and ensure you follow them.
A business lawyer, an owner, a business partner, a manager, or a member of the business can be a registered agent. A third-party registered agent can also be your registered agent. But given the various options, it’s best to sift through your prospects carefully. Know that each type of agent has their advantages and disadvantages. Also, you need to check the reviews, such as this Northwest Registered Agent LLC review, to ensure you find the perfect fit for the job.
When Does Your Business Need A Registered Agent?
Aside from business registration, there are also other essential circumstances that warrant the appointment of a registered agent for your business. These include the following:
- If you don’t want any legal documents and other types of correspondence served in front of your customers and employees, you can have your registered agent receive them.
- Suppose you use a P.O. box as the mailing address of your business. You need a registered agent so that the federal and state notices will be sent to you promptly. This is especially true if the government wants to contact you regarding nonpayment of taxes or noncompliance with other pertinent laws.
- If you operate a business in several states, you should have a registered agent for each state.
- If you don’t want to worry about missing out on essential documents when traveling or on vacation, you can delegate the task of receiving said documents to a registered agent.
- If you want your business to maintain good standing with the government, a registered agent is a must. They can help ensure your business remains compliant with specific state and federal laws.
- If you want to avoid missing a crucial deadline and dealing with hefty fines and penalties, appointing a registered agent can be an excellent solution.
- If you’re planning to change your business location within the state, having a registered agent makes the process much easier. You only need to notify the agent instead of filing a petition for a change of registered agent with the state.
There are many situations to consider when your business should have a registered agent. So if you haven’t appointed one, look at the circumstances above to determine if it’s time to have a registered agent working on your behalf.
Conclusion
Having a registered agent is essential for every corporation and LLC. They can help streamline your correspondence with pertinent organizations in your state and help ensure your business complies with specific federal and state laws.
Keep the information mentioned above in mind to know what to expect from a registered agent and how to have one for your organization.
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