It’s important to note, business owners who choose to form a corporation or LLC will be required to have a registered agent. Although this is a common requirement, several business owners are opting for third party registered agent service providers instead of hiring their own lawyer/registered agent. This is due to the fact that third party registered or resident agents can be contracted at a much lower price point… saving businesses and business owners money.
If you are unfamiliar with registered agents, these individuals are responsible for receiving legal and tax documentation. Registered agents receive these documents on behalf of the business. These agents are required for all corporation and LLC’s because they provide a permanent address, during normal business hours, in which legal and tax documents can be received.
Every legal entity conducting business as either a corporation or LLC is required to have a registered agent. For every state in with that business operates a registered agent must be in that state of business. For example if a business owner has a business in two states, such as Massachusetts and New York, a registered agent will be required in both Massachusetts and New York.
Registered agent services and third party providers are great due to a variety of reasons. There are several situations in which having a third-party registered/resident agent is a great option.
1) Your business is located in several states:
If you are a business owner and your operate your business in several states, it’s easy to have a third party registered agent service provider monitor documentation of your business. One company will handle all of your documentation and you will not have to worry about contracting out individuals from several different companies.
2) You want your business matters to stay private:
Many business owners choose third party registered agents because they want all legal/tax documentation to go to their agents address, instead of their place of business. Typically the resident agent will be mailed necessary legal/tax documents and then deliver these to the business. This way your business matter are kept completely private and confidential.
3) You change your address often:
If you are a business owner who moves around frequently, maintaining a third party resident agent is ideal. If you do so, anytime you move, you won’t be inundated with paperwork you will need to file so that the necessary legal/tax documents reach you. If you are your own agent then you would have to file “change of address” forms and possibly pay an additional feel. As long as you have a third party agent, the documents will go to their address and you don’t have to worry about the changes.
4) You are too busy to monitor your business legalities:
Naming yourself as the registered agent means that you will have to maintain all the proper documentation and file the necessary paperwork. Often times this can become very confusing. If you want to take some of the load off of your back, hire an third party agent to do this work for you. This way you can focus on making money for your business, as opposed to wasting time making sure all your paperwork/filings are up-to-date with the state(s).
5) You need professional guidance:
Registered agent service providers are the professionals. They know what they are doing, so let them carry the weight. If you don’t want to play the guessing game with filing dates and necessary requirements, let your agent do this for you. Work on growing and making money for your business instead.