A registered agent can be an individual, over the age of 18, or a business. You or another member of your organization like a partner, officer, or employee can serve as the registered agent with the physical address of your business but if you choose this route, beware of the potential risks and consequences. This is a list of some of the reasons your organization should be using a registered agent service over an individual.
Secretary of State Compliance
Requirements can be complex and confusing and if you do business in multiple states there are multiple filings to maintain. The variety of forms often require information from a variety of resources (this is a great reason to use an entity management system).
Reduction of Risk
When you use a registered agent service you reduce the risk of non-compliance by shifting responsibility to the registered agent service. A registered agent service will be available when required and will provide you with timely notice of renewals and any other actions required by you so your organization will never miss a deadline.
Registered Agent Availability
A registered agent is required to be available during normal business hours, Monday through Friday, 52 weeks a year. They must have a physical address; a post office box is not acceptable. If you list an individual as your registered agent, it is almost certain that they cannot meet the availability requirements.
Avoid Penalties and Fines
State and federal regulations dictate filing requirements and deadlines and impose penalties and fines for non-compliance with those requirements and deadlines. A registered agent service will keep your organization in good standing with your state of formation, other states in which you do business avoiding penalties and fines.
Maintaining confidentiality regarding legal matters is crucial to the reputation of your organization. When you use aa registered agent service you protect the sensitive nature of legal entanglements, keeps important matters confidential. A registered agent service will accept service of process in a timely and private manner so that your organizations legal and financial matters can be addressed promptly.
One Registered Agent for Multiple Jurisdictions
An individual can’t be in two places at once. Your organization is required to have a registered agent with a physical address in the state in which you incorporated your business and in any state where you conduct business. Using a registered agent service alleviates the need to maintain multiple offices and multiple registered agents.
Using a registered agent service is a means to maintain confidentiality and compliance while reducing the risks of missing deadlines and being sanctioned with penalties and fines.
If you would like to learn more about Legalinc’s registered agent service, call us at 866-757-5850 or schedule a demo.