- A registered agent is a trusted third-party that is registered in the same state that a business was established in. Their primary responsibility is to receive notices on behalf of the whatever business entity they are responsible for representing, whether that may be a LLC or corporation. Registered agents process official government notifications, their annual business renewal, court summons, and any communication from the Secretary of the State. Generally, the agent does not participate in the operation of the business unless further legal representation is part of the contract.
What does a Registered Agent do?
- The registered agent accepts documents on behalf of the business. This ensures that any notifications regarding lawsuits or taxes regarding your business are effectively processed. Additionally, as businesses expand and move to bigger office locations or expand into new states, additional paperwork will not constantly be needed to be filed to notify the state a change of address. The key here is that the location of the registered agent doesn’t change, so a business may expand and move freely and without worry.
Why do I need a Registered Agent?
- As business owners expand their organization, there may not always be a physical location located within the state your business is registered. State Law generally requires there is an individual or agency that can be a contact person for the business that can be available at all times. Hiring a registered agent mitigates the stress of always being available to being available for contact or accept legal and tax documents.
Can You Be Your Own Registered Agent?
- Legally, it technically is possible to act as your own Registered Agent. However most business owners and state regulators would advise that someone other than the business owner fulfills this crucial responsibility. Many entrepreneurs start their own business because of the draw of an independent lifestyle. Coming and going from work as they please and going on extended vacations are all possibilities for business owners who have a trusted registered agent is to at all times be available to accept critical documents.
Is hiring a Registered Agent expensive?
- There are many options available when seeking a qualified registered agent, however, not all options are equal. The Registered Agent Services offered through Clarior Law provides a comprehensive service that allows small business owners to focus on growing their cherished enterprise. For $95 a year, Clarior Law covers the cost of the business renewal, receives any government or tax notifications sent through the mail, and the helps to make sure the renewal is up to date and does not fall into delinquency.