When forming a company in any U.S. state, you’ll be required to appoint and maintain an in-state registered agent, and the choice that you make could have important repercussions for your business.
With this in mind, here is some guidance to help you choose the right registered agent for your LLC or corporation:
What are the requirements for corporations and LLCs concerning registered agents?
As mentioned briefly above, all states in the U.S. mandate that those foreign corporations and LLCs who qualify (and pretty much every other type of statutory business entity), must appoint and consistently maintain a registered agent in-state.
The role of the registered agent is to receive court documents, official correspondence and information pertaining to compliance, on the behalf of the corporation or LLC. Requirements may vary slightly from state to state, but the majority of them require that the agent be a resident within the country, or a domestic or qualified foreign corporation or LLC.
As summons and complaints are always served by hand delivery, the office address of the agent must be a physical one within the state, and the agent must be available there during business hours; it may not be a virtual office or P.O. Box. The name and address of the registered agent is then filed by the Secretary of State and made available to the public.
Can you be a registered agent for your own business?
It’s not uncommon for a small business owner to want to act as the registered agent for their own company, and while this is allowed, it’s not always the most sensible choice. For instance, if you don’t have a base address within the state that you spend the majority of your time in (such as an office), don’t have a physical; address at all, or running your business requires that you move around a lot, it can be extremely helpful to appoint a registered agent who can receive important documents and information on your behalf, as well as respond to them in a timely fashion.
How to choose a registered agent
Ultimately, you must appoint someone who is reliable, trustworthy and consistent as your registered agent, and many companies find that outsourcing to a registered agent service is the most convenient and effective way of doing so. Here are a few things to look for from a registered agent service provider:
- Availability
Ideally, they must be physically present at the businesses registered office address throughout normal working hours, to receive and deal with any important mail.
- Expertise
They must be familiar with the rules surrounding entity management and compliance in your state.
- Professional assistance
Ideally, they will employ people who are able to expertly handle and forward important documents to prevent any delays that could prove costly for the company.
- National reach
check whether they’re able to provide you with a registered agent and registered office in any state that you may wish to carry out your business in, or move to in the future.
Hiring a registered agent service can benefit you in other ways, too, as many of them provide a comprehensive range of services that can help business entities with all of their compliance requirements.
Who you appoint as your registered agent is very important in terms of the success of your business, particularly when it comes to matters of compliance. Such matters can prove more than a little troublesome for businesses of all sizes, and if not handled appropriately, can often spell disaster for them.