Do I Need A Registered Agent Service

When you lot form a corporation or an LLC, you'll exist asked to name a registered amanuensis. But what's a registered amanuensis and what do you demand to know to choose one?

If you're forming a corporation or a limited liability company, yous'll need to select a registered agent for your concern and provide the agent's name and accost on the formation documents yous file with the state.

Hither'south what you demand to know earlier you cull an agent.

woman opens documents

What Is a Registered Agent?

When someone sues a concern, they must notify the business of the lawsuit.

In some states, a copy of the lawsuit must exist delivered in person to a representative of the business. In other states, information technology must exist mailed.

To make it easier to decide who should receive a lawsuit against a corporation or LLC, all states require business entities to keep the name and address of a registered amanuensis on file.

The registered agent is a person or entity that has agreed to be available during concern hours to take lawsuits and other documents on behalf of a business.

Depending on the country you're in, the registered amanuensis may also be called a "statutory agent." The agent'due south business address may be called a "registered part," and the legal documents the agent accepts may be referred to as "process."

In addition to lawsuits, registered agents may receive subpoenas, tax notices and other official correspondence. They are responsible for passing these documents along to the appropriate person at the corporation or LLC.

Corporations and LLCs must have a registered agent in each country where they are registered to do business.

Who Can Act as Registered Agent?

Registered amanuensis requirements vary slightly from state to country, just there are a few full general rules:

The agent must have a physical street address within the state – a P.O. box won't exercise.
The agent must be available at that accost during normal concern hours.
In most states, the amanuensis tin be an private who is at least 18 years onetime, or it tin can be a visitor that provides registered agent services.
A corporation or LLC cannot act equally its own amanuensis, but in most states, 1 of its employees or owners can be the amanuensis.

Should You Be Your Company's Registered Agent?

Naming an employee or owner to deed every bit registered agent for your business organization can relieve money on registered amanuensis fees and tin requite you the comfort of knowing that legal documents volition go directly to you.

However, interim as your own amanuensis has numerous downsides, including:

Y'all can exist personally served with a lawsuit at your place of business, in front of employees and customers.
Your proper noun and address volition exist part of your business'due south public records on file with the state. This can be a detail concern if you take a home-based business or desire to keep your information private.
Registered agents usually receive other documents, notices, solicitations and junk mail addressed to the concern. If you don't desire to sift through this postal service on an ongoing footing, you might prefer an outside agent.
If your business changes locations or if your agent leaves the company, you will need to update your registered amanuensis information with the country. In the midst of a move or reorganization, small business owners seldom remember to do this.
If yous travel frequently or spend a pregnant amount of time exterior the office during the workday, you're won't be available during normal business concern hours.
You can simply deed as agent in the country where you're physically located. Many businesses with a multi-state presence notice it easier to hire a company that tin provide registered agent services nationwide.

Tips for Selecting an Outside Registered Amanuensis

Your registered agent's responsibilities don't end with accepting lawsuits and other documents on your behalf.

The agent is too responsible for getting the documents into your hands promptly. If your agent neglects to do this, yous tin lose a lawsuit through default or yous can be bailiwick to court sanctions for ignoring a amendment.

For this reason, it'southward of import to cull an amanuensis that is reputable and has a track record for providing registered agent services.

Don't name your 2nd cousin just because he's agreed to practise it for gratuitous. Many states' business concern filing departments maintain a listing of companies that provide registered agent services in that state.

If you are registering to do business in multiple states, consider hiring an agent that volition be able to human activity as your amanuensis in all those states.

Your registered amanuensis plays an of import office: ensuring that lawsuits, court documents and notices are brought to your attention promptly, so you can act on them and avoid default judgments, fines and penalties.