LLCs and corporations are required to appoint a registered agent to operate. A registered agent also referred to as a resident agent or statutory agent, must be located in every state where the company is doing business. Its main task is to be the official recipient of important legal documents and correspondence for your LLC or corporation and be available Monday through Friday during business hours. An individual or another business entity that is physically located in the state of your company’s operations can function as a Registered Agent.
A business owner can be registered agent for their business, however it’s not always a good idea. Acting as your own registered agent means being available at your business location during all business hours, five days a week, keeping track of all tax forms and annual reports to the state, etc. When you are building a business, especially when you are just starting, it’s not always easy to keep up with all the legal formalities. It’s better to hire a professional Registered Agent who will relieve you of legal paperwork duties so that you could focus on your business.
WHY DO I NEED A REGISTERED AGENT?
Having a registered agent is a requirement for operating an LLC or corporation. You can be your own registered agent, however, be prepared that you will be spending a lot of time dealing with legal formalities required by your state, instead of building your actual business. Also, the registered agent’s name and address are public information. If you want to keep your identity as a business owner confidential, having a professional registered agent is the way to go.
DO I NEED A REGISTERED AGENT IN EVERY STATE MY COMPANY OPERATES?
While business laws are different in every state, each state requires that an LLC or corporation doing business in that state have a registered agent for the service of lawsuits and subpoenas. In other words, if your company has a presence in a state (whether it is a physical office location, conducting sales or other business transactions in that state, having a sensible portion of the income generated in that state, etc.) it must have a registered agent in that state. For example, if your company formed in the State of Georgia, has conducted business in the State of Delaware, you need to have a Delaware registered agent to operate in that state.
WHAT HAPPENS IF MY COMPANY DOES NOT APPOINT A REGISTERED AGENT?
Having a registered agent in each state where an LLC or corporation operates is a law. If you fail to appoint a registered agent in the additional state where your company is conducting business, be prepared to incur fines, fees, and other penalties. Also, in the event of any legal actions, you won’t be able to litigate in court without a registered agent. Additionally, a corporation can lose a corporate status and be considered defunct by the Secretary of State for failure to have a registered agent.
WHERE CAN I FIND A REGISTERED AGENT?
If you need a reliable and experienced registered agent, contact BizStarter. We will represent you while you can focus on your business!
