Why You Need A Registered Agent Service Provider

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A registered agent can be a business entity or an individual that facilitates the receipt of and service of process notices, notices of lawsuits, correspondence from the Secretary of State, tax forms, and other documents for the corporation or legal entity that they represent. While that may seem too trivial a task, when it comes to corporations, this is extremely important. 

One has to remember that maintaining a business is a legal matter, and having a registered agent works wonders for compliance and keeping your corporation legal and aboveboard. Other than keeping the correspondence compliant and legitimate, a registered agent service can maintain and develop all those important documents on your behalf.

Registered agent services

  • Tax notices from the IRS and local tax authorities
  • Notice of lawsuits
  • Subpoenas for information
  • Official federal and state correspondence
  • Wage garnishment notices
  • Court summonses
  • Corporate filing notifications

As you can see, those are just some of the documentation that passes through the hands of a registered agent service. Imagine if, at the same moment of running your business, you still have to attend to even one of those in the list above. Having an agent gets rid of the chaos and confusion while maintaining that professional image for your company and keeping everything tidy, legal and above board.

A registered agent service makes your company compliant

In most states, businesses are required to designate a registered agent when establishing a company or an LLC in that state’s jurisdiction. This means that having this service is actually a requirement for a business entity to operate legally. Without appointing an agent, any new business that attempts to incorporate will have its papers rejected. 

On the other hand, an existing company that only has gotten the services at the start but failed to maintain the services of a registered agent will face serious consequences. For example, in a lawsuit, the other party will default the judgment in their favor if the opposing party does not employ the services of a registered agent. All this is an addition to running the risk of fines and penalties.

Spend your time where it matters

Documentation and compliance requirements can take up precious time that you can spend on more activities that matter, such as gathering resources and investors for your company. It is not the complexity itself but the tedious nitty-gritty details of bureaucracy that take up energy that is better focused somewhere else. This is the chief reason why companies retain the services of a registered agent, who does nothing else except attend to the details of compliance and the nitpicking of documentation. Expertise matters and will result in accuracy and fewer mistakes.

Keep your privacy

It rarely does help if a summons is served right in front of your employees via local law enforcement. Having these kinds of legal documents received by a dedicated service provides a screen by which these sensitive matters can be attended to without disrupting business operations. Not only will your company receive this legal documentation privately, but also in a timely and compliant manner.

Your business only has one headquarters

In most cases, especially now, a company may only have an office in one location but operates nationwide. Having a registered service agent lends legality to anywhere that your company has business dealings with. If your headquarters are in California but you have a business in Wyoming, you need Wyoming registered agent services to represent your company. A contact person is always needed to convey to the state that you are doing business legally in their jurisdiction. Having no representation will cause you to lose good standing with a particular state and may cause your business to suffer, not to mention being penalized.

The question is not whether you need a registered agent because if you are a business, you need one for compliance. However, there is the problem of choice, and this would be where your best judgment comes in. It is never a question of whether you should get one but rather a question of who among them you should hire.

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