A business’s legitimacy is important in the eyes of the law and the government. You may be a rapidly progressing hardworking corporation that exceeds its assigned goals, but if it’s not an official entity, then its legitimacy is questionable. Your business might be as legitimate as they come, but it can’t be declared one in legal terms if it doesn’t have its own registered agent. It’s not enough that you are aware of how established and transparent your business is, you must have an official registered agent in the state of your business. The state government only considers your business’s permanent residence there as a designated place of operations, if you have your own registered agent.
So, why exactly do you need a registered agent?
Businesses can vary widely in their structure and mode of operations, but in order for the government to carry out correspondence with you related to legal affairs, you must appoint an agent for your business who will be managing all your documentation coming from the state. These legal documents includes tax documents such as a franchise tax form or service of process or the annual report forms that your business is obligated to file every year. A registered agent will be the public facing end of your business to manage all your legal documents without having you worry about missing any deadlines or other similar complications.
Let’s take a look at the advantages an appointed registered agent can grant you:
- You can focus your energy to your business. Entrepreneurs and proprietorships especially, are heavily invested into growing and building their business in terms of time and effort. Having to go through all the required tax filing processes issued from the state can be an exhaustive and laborious process that’s better left off for a designated agent, so you can focus on building your business.
- Preventing non-compliance is another major plus. Compliance affairs are intricately detailed and require thorough examination. Your registered agent will be deeply familiar with all the federal regulations and deadlines, so you can stay in compliance. Appointing a registered agent for your business incorporation will ensure you don’t have to pay those unnecessary state penalties.
- Avoiding the delivery of lawsuits in office. In case your company is served with the service of process, law enforcement officers are going to deliver it to you in your place of business and we all know that won’t reflect well with the customers. This can be avoided by having a registered agent who will receive the notice in his assigned address ensuring private receipt of lawsuits or other legal documents.
- Reducing the amount of junk mail received. Did you know that your registered agent’s address will be visible in public record? This means that he will be diverting the unnecessary influx of junk mail towards him, instead of having it clog up your operational inboxes.
- Ease for unconventional business hours. Your company might not be open during business hours due to separate timing of its own. In case your business does operate during unconventional hours, it’s probably best that you get a registered agent who’s open during business hours, in order to receive all important documents and legal notices when you can’t.