Every business is required by law to have a registered agent. It can be an individual or a company. It must be physically located in the state where the business is registered to operate.
Many business owners appoint themselves or an employee as the registered agent. However, using a professional service ensures that important paperwork won’t get lost in the mail.
Legal Requirements
You can designate any person or business as your registered agent, provided they meet the state requirements for the role. In New York, for example, the registered agent must have a physical street address (sometimes called a “registered office”) and be available during normal business hours to receive service of process, legal notices and government correspondence. P.O. boxes and mail drop services are not acceptable. The registered agent must also be at least 18 years old, a resident of the state of registration and must not be an active corporation or LLC.
If you have a business that operates in multiple states, or are planning to expand into additional states, choosing a professional registered agent company that provides nationwide service can be helpful. This service can simplify compliance, as important documents can be forwarded to a single point of contact. It can also protect your privacy by keeping your personal address off of public records, as well as eliminate the hassle of tracking down and submitting renewals for multiple agents.
What to Expect
Having a reliable registered agent is crucial to maintaining your business’s compliance with state regulations. A registered agent should be available during normal business hours and have a physical address (not a PO box). In general, the role of a registered agent is to receive legal documents on behalf of your business and forward them to you.
Individuals can serve as their own registered agents, but if they are traveling or working remotely, it can be difficult for them to consistently receive service of process notices. Additionally, if they use their own name and address, it becomes public record and could lead to unwanted speculation or gossip if someone visits their home or office.
A commercial registered agent service can guarantee their agents are always available during normal business hours and have a physically accessible location. Most services also scan and digitally store received documents. As a result, they save businesses time and money by not having to sort through official mail themselves.
Choosing a Registered Agent
A registered agent is an individual or company that receives service of process, legal documents and official notices on behalf of a business. While an owner may fulfill this role themselves, it’s typically a better choice to work with a professional registered agent service.
These services offer affordable annual fees—between $50 and $300—and ensure that all important documentation is relayed to you in a timely manner. They also provide a range of other useful services, such as a compliance calendar to help you stay on top of deadlines. Plus, they can often serve as your registered agent in every state where you’re doing business, saving you a lot of hassle and worry.
Requirements for Registered Agents
Choosing the right registered agent is important. It is the person or company who will receive legal papers and government notices on behalf of your business. This includes lawsuits (what lawyers call service of process), renewal notifications from the Secretary of State, and tax documents.
You can choose an individual (including yourself) or a commercial registered agent service to act as your New York registered agent. Depending on the state, some registered agents may have specific requirements. For example, some states require that the agent be licensed to practice law. Others may only allow officers, directors, managers, or employees of the entity to serve as the registered agent.
Generally, the agent must be available during normal business hours and have a physical address in the state (P.O. boxes are not acceptable). A commercial registered agent service will likely be able to meet these requirements, as well as provide additional services such as fast document forwarding and digitized records storage.
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