Why Hiring a Registered Agent Service is Linked to Business Success
Exploring The Undeniable Benefits of Registered Agent Services
At the moment, most U.S business owners are legally required to register themselves (or a third party service) as a Registered Agent. A Registered Agent generally accepts all legal and post correspondence that is sent to a person’s business, and formally accepts service of process forms from process servers (formal notifications of company-related lawsuits).
Undoubtedly, therefore, choosing the right Registered Agent for you can play a pivotal role in your business’s holistic success- as missing a certain legal deadline or not having the required legal documents in time can cost you significant fees, time, and hussle in the long run.
If you are wondering who can be a Registered Agent in 2021- and consequently whether you should simply ‘’be your own’’ Registered Agent so as to save money, or whether you should rely on specialised third-party services, you have come to the right place.
Whilst a plethora of individuals continue to serve as their own Registered Agents, government surveys have shown that there are a prolific number of exclusive benefits which are associated with solely relying on third-party registered agent services- such as increased time, decreased stress, and a holistically improved managerial office structure.
Below we will have a look at the most significant benefits of hiring a registered agent service for your business in 2021.
Legal Classification Of A Registered Agent?
A Registered Agent is a legally designated (same-state based) individual which voluntarily accepts certain responsibilities over a business. On behalf of Limited Liability Companies and Corporations, Registered Agents receive: a) service of process forms, b) tax law documents, and c) all state and federal body paperwork that is sent to the business (such as notices received from the Internal Revenue Service).
The Registered Agent of a business must satisfy a plethora of legal prerequisites. For example, they must be a resident of the same state of the business in question. The importance of Registered Agents stems from their ability to: a) act as a physical business address for the businesses involved (P.O boxes cannot be used due to their unreliability), and b) provide an identity through which all business-related notices and legal documents can be communicated to a specified business in a quick and manageable timeframe.
This significantly decreases the chances of inadvertently ‘’missing’’ a legal deadline, as well as failing to respond to a legal action or any other federal prerequisite that may arise in the future. As mentioned above, this is one of the most important reasons for why an increasing amount of businesses are beginning to rely solely on third-party registered agent services.
Overview of Benefits of a Registered Agent
The benefits of having an external registered agent service are quite significant, including:
A distinctive physical address that is not the same with that of the business in question: This means that your business will be able to relocate (within the same state) without being legally required to file a plethora of exorbitantly priced filing protocols that relate to change of address.
Increased personal flexibility for business owner(s) involved: By relying on a third-party registered agent service, business owners are pragmatically free to exercise a much more flexible schedule. They can relocate whenever they want (and feasibly can), work non-conventional hours, and generally form their daily schedule in a way that is tailored to their own specificities and industry without having to worry about potentially missing an important court or procedural deadline.
Non-disclosure in front of clients: This is arguably extremely valuable for the more inconvenient or ‘’embarrassing’’ documents that your business may receive- such as summons to court, which you may not want to have to receive in front of your personnel or (even more importantly) your clients.
Increased privacy: As the registered agent’s address is publicly available, your own address will not have to be made public in any way.
All in all, hiring a professional and specialised Registered Agent service can undoubtedly provide a variety of benefits for you. Ultimately, however, whether relying on a third-party service is the best choice for you or not will highly depend on your style of management and available capital.