A registered agent service is a legal entity that will receive any legal documents such as subpoenas, tax notices or any other state correspondence on behalf of a business.
According to the U.S Bureau of Labor Statistics, start-up businesses are on the rise. It is important for any new business to adhere to state and deferral regulations when registering and running a business.
Very often, entrepreneurs are not all that familiar with the legal requirements when starting a business and using a registered agent service can greatly improve the process. Although business owners can in some cases act as their own registered agent, there are definite advantages of using a professional service.
- Business Flexibility
The law requires a registered agent to operate Mon-Fri during normal business hours for 52 weeks of the year. The reason for this is that there always needs to be someone available to receive important documentation.
Business owners that operate outside of the traditional business hours, plan to travel frequently or go on holiday will have to keep the office open during those times. This does not make any financial sense and would impede on the flexibility of the business.
Using the best registered agent service for your business, means that qualified professionals will take on the responsibility of availability so documents are received and acted upon in a timely manner.
Anyone has access to the address of a registered agent as it is a matter of public record. For a home-based business this could mean a large number of unsolicited mail from marketers. Using a registered agent service also means that should the business address change for any reason, the details would not have to be updated again.
Depending on the type of business, there might be customers or service providers that are in and out of the office building. No business owner would appreciate being served with a lawsuit by law enforcement while customers are present. This could potentially cause damage to the reputation of the brand.
Having a third party registered agent service means that all notices and documentation will be delivered to the registered agent’s office and not your business. It is also important to remember that a registered agent must have a physical address registered as a P.O. Box is not permitted.
- Penalties and Fines
Most business owners would prefer to focus on their business operations instead of legal documentation. A busy business owner might respond late to notices or the business could run the risk of being non-compliant.
This can carry quite substantial fines or penalties that any new business owner would rather avoid. A registered agent service manages all these activities for the business to ensure that the business is always compliant and that notices are actioned and brought to your attention well ahead of any deadlines.
- Organized Documents
Having to look for important paperwork that was misplaced or perhaps thrown out by mistake can be stressful to any business owner. A registered agent service keeps all of the legal documents in one place with easy access and proper tracking systems. They will also keep all documentation for the period specified in the regulations, ensuring that documents are on and if they need to be referred to.
- Legal Benefits
Some registered agent services also offer ongoing legal guidance and advice as part of their services. This is a great benefit for business owners who are not familiar with all the legal rules and regulations. They will assist in ensuring the business remains in good standing with the state through compliance with regulations.
It might seem like yet another expense for a start-up business, but the above advantages of using a registered agent service means that a lot of time and money can be saved. Having to redo paperwork that is incorrect or being issued with substantial fines or penalties are issues that no business owner should have to deal with.
A registered agent service will keep the business compliant and ensure that legal documents are received and actioned in a timely fashion. They are experts on the regulations which enable the business owner to focus on the daily operations and success of the business.