If you’re launching a new business or expanding an existing one, you’re probably already familiar with the role of a registered agent. But do you know what a registered agent is and why your company requires one? More importantly, do you know how to select the most suitable registered agent for your business?
Finding a registered agent is an important step when starting a business. It can be a bit perplexing, but don’t worry, we’re here to assist!
This article answers these questions and provides tips on choosing a registered agent.
What is a Registered Agent?
Simply put, a registered agent receives mail from a business entity. He ensures your business company doesn’t overlook important paperwork like lawsuits, tax notices, and other business documents.
To make identifying who should receive important paperwork for a corporation or LLC easier, all states require business entities to maintain the name and address of a registered agent with the Secretary of State.
In addition to lawsuits, registered agents are entitled to receive subpoenas, tax notices, and other official correspondence. They are responsible for forwarding these documents to the right person at the corporation or LLC.
Corporations and LLCs must have a registered agent in each state where they are authorized to do business.
Tips to Choose a Registered Agent for Your Business
Search for a Registered Agent that Makes the Process Simple
Seek out a registered agent service that handles the required documentation in every jurisdiction your company operates. They should gather, finish, and file the papers for you and then provide the submission confirmation. A good registered agent service will conduct compliance checks in each jurisdiction where your company is situated and generate an entity report.
Finally, look for a registered agent who will pay your processing fees in each state where you do business and won’t make the transition. A registered agent service that handles these procedures at the start of your relationship is far more likely to take care of all future responsibilities with the same level of courtesy and care.
Research the True Cost of Each Registered Agent
You have many factors to consider when choosing a registered agent. Base your decision on how well they satisfy your chosen criteria. Also, consider the legal costs of correcting a single error made by an inadequate registered agent, which can be significantly greater than a qualified agent’s fees.
So, when you choose a reliable agent, you won’t encounter any surprises in your invoices.
Consider Experience and Expertise
When it comes to experience and expertise, you require a registered agent who is well-versed in the state laws and regulations of your business’s location. A registered agent knowledgeable about your industry’s legal requirements can help you avoid potential legal issues and successfully respond to notices in the event of litigation. Look for an agent with a history of preventing claims and lowering potential payouts.
Additionally, you should consider a registered agent with experience working with similar businesses. For example, suppose your business operates in a highly regulated industry, such as healthcare or finance. In that case, you must select a registered agent with experience dealing with companies in such sectors.
Reading Reviews and Testimonials
When choosing a registered agent, reviews and testimonials from other clients can be a great source of information. To evaluate an agent, consider reviews and testimonials from other businesses and potential clients who have directly worked with the agent. Contact with previous clients to learn about their experiences with the agent.
When reading reviews, it is crucial to identify any recurring themes or issues mentioned. For example, if multiple clients mention poor communication or slow response times, this could be a warning sign.
