4 Reasons to Hire a Registered Agent

Listing a registered agent is among the requirements when forming a corporation or a limited liability company (LLC). This professional is an entity or individual you appoint to deal with the necessary correspondence (tax, government, and legal) regarding your business.

While you can be your own registered agent, some challenges may arise if you aren’t present at the physical address you list for normal business hours or don’t work from a single location. This is where a registered agent comes in. Outlined below are four reasons to hire a registered agent.

1. Maintain compliance with state regulations

Registered agents are a legal requirement for specific business entities because they ensure crucial information is delivered on time to ensure compliance with state regulations. For instance, if you run an LLC or corporation in a state where you have no physical presence, hiring a Northwest registered agent can help meet this requirement. You can read more about Northwest Registered Agent here.

Before listing a registered agent, ensure their offices are in strategic locations with regard to your business. Your business is required to appoint a registered agent if it’s a:

• Corporation
• Limited liability company
• Limited liability partnership
• Limited partnership

A registered agent’s primary duty includes managing your business’s compliance-related documents to ascertain that your entity stays compliant with state regulations while ensuring any legal issues that might crop up are addressed promptly.

2. Safeguard your privacy

Most businesses prefer keeping their process servers from the prying eyes of: 

• Employees
• Clients
• Neighboring companies
• Vendors

Working with a registered agent allows these servers to send their claims to a different location, not your company address. This safeguards your privacy while ascertaining the claim is handled in a timely manner. If you prefer running your business from the comfort of your home and wish to keep your address private, a registered agent can come in handy.

All documents will be delivered to the agent’s address, keeping your residential address a secret. For businesses that operate in co-working spaces, hiring a registered agent helps safeguard your business information by having your legal documents delivered to a different address.

3. Expand your company to other states

If you run a multi-state business, you’ll need a representative in every state. As a business owner, you can’t be available in multiple places simultaneously. As such, recruiting a registered agent is more advisable because they’ll be available at a physical address during regular business hours. This is crucial for the delivery of legal and other documents. Additionally, even if your company operates online and doesn’t have a physical address, you’ll still require a registered agent’s physical address.

4. Availability during regular business hours

Suppose you’re not always present at your business’s physical address during normal business hours or are constantly on the go. In that case, you’ll likely miss critical legal deadlines or notices, leading to the risk of penalties, fines, or legal action against your corporation or LLC. Hiring a registered agent ensures your official and legal documents are received and acted upon on time because they’re available during standard business hours.

Thanks to this availability, your company can avoid the risk of the consequences associated with missing critical legal documents and business notices. In addition, a registered agent that offers online access to vital documents or electronic document delivery makes it easier for your business entity to stay updated on regulatory and legal matters.

Endnote

Registered agents are a legal requirement when forming a corporation or LLC. Familiarize yourself with the reasons to hire a registered agent.