Most states require business entities to have registered agents. Registered agents can be individuals or other businesses.
What is a registered agent service?
A registered agent is a responsible third party who is registered and is present in the same state in which a business entity was established. The registered agent receives all formal process notices, correspondence from secretary of state, state comptroller office, notice of lawsuits etc on behalf of the corporation or LLC
Why is a registered agent service required?
If you do not have a physical presence in the state where you are incorporated, you are required to hire a registered agent who can accept email correspondence on your behalf. Please also note that PO boxes are not acceptable, only a mail correspondence address is acceptable.
Also, there has to be a contact person available to receive your correspondence.
What are the roles and responsibilities of a registered agent?
A registered agent accepts tax and legal documents on your behalf and ensuring you don’t miss any key information regarding tax payments, lawsuits or any other important correspondence from the government. A registered agent may be a third party provider, he or she may not be actively engaged in your business.
Can you self-service being your own registered agent?
Yes, you can be your own registered agent. However, it’s recommended to designate a third party.
By having another third party receive your tax and compliance documents, you can be assured that there is someone to manage your correspondence. This is also very useful if you are frequently traveling on business or on personal trips.
Advantages of registered agent services
In addition to a third party being available at all times to accept your legal & compliance documents, many times you will avoid accepting law suits or tax notices before your employees or clients. Also, you can change your office location but your registered agent will remain the same. This saves a lot of time in managing the move and ensures you have one consistent address year after year.