3 Benefits Of An Automated Registered Agent Platform

3 Benefits of an Automated Registered Agent Platform

Many of our corporate law and in-house counsel clients are responsible for setting up business entities. With each new corporation or LLC comes the need for a local registered agent. The attorney must communicate regularly and often with the registered agent to ensure timely receipt of important tax documents, service of process, etc… This is where a national registered agent service can help attorneys help their clients minimize compliance risks as they pertain to potential litigation through smart, efficient automation.

The role of the registered agent managing service of process is to act as a crossing guard, ensuring that everything gets where it needs to go and on time, without hiccups and with certainty. At Legalinc., we have discovered three main factors driving a company’s decision to implement an automated solution for their service of process documents.

Failing To Designate A Registered Agent

Failing to Designate a Registered Agent

U.S. law requires that an LLC or corporation must have a Registered Agent available during normal business hours to receive certain document, including legal notices, correspondence from the federal and state government, and tax documents from the IRS. Indeed, the state will not approve a business’s Articles of Incorporation or Articles of Organization if the business does not designate a Registered Agent. Failure to maintain a Registered Agent is equally as risky.

Advantages Of A Third Party Registered Agent

Advantages of a Third Party Registered Agent

The advantages of a third party Registered Agent are numerous and, for businesses that do not have a physical location in the state in which the business is registered in (i.e., a California business incorporated in Delaware), required by law.