What Is A Registered Agent & Do You Need One?

Many new business owners ask themselves what is a registered agent and do I really need one. The answer is yes! A registered agent is a person or company with the authority to accept service documents and notices on behalf of your business, and the law requires that your business appoints a registered agent as soon as you form your LLC or corporation. Your registered agent must have a physical location within the state where the business is registered to operate.

registered agent
registered agent

Some examples of the documentation a registered agent will receive for you include:

  • Tax notices from the IRS and local tax authorities
  • State government correspondence
  • Subpoenas and Lawsuits
  • Wage garnishment notices to notify you of an order to withhold a portion of your employee’s wages
  • Corporate filing notifications

Examples such as these will be delivered to your registered agent’s physical location in the state where you operate your business. This location is referred to as your registered office and it must have traditional office hours Monday through Friday to receive notices of process. If your company has foreign entities in other states, you must also designate a registered agent in each state of business. If you operate in multiple states or plan to expand, choosing a registered agent that serves all 50 states will simplify your process since one company will oversee all of your annual filings.

Some of the benefits of having a professional registered agent are privacy, compliance, saved time, and multi-state business expansion. If you fail to designate a registered agent or fail to pay your registered agent’s fees, you may incur penalties and fines and could even lose your corporate status if found to be out of compliance. Additionally, without a registered agent, you may neglect to respond to certain notices, which could put your business at risk of legal action or termination. 

Securing a registered agent provider that serves all 50 states and that also provides business formation and compliance filing services is beneficial for new business owners and provides a one stop solution for your entity management needs. Because a registered agent’s role is crucial for ensuring your business addresses notices promptly, selecting the right registered agent is crucial for your business.

Some states allow business owners to act as their own registered agent, which can be cost effective for some but the drawbacks may not be worth the savings.

Here are the top drawbacks of serving as your own registered agent:

  • Important notices and legal documents could get lost in the shuffle with other mail coming to your business.
  • Your name and address becomes part of the public record filed with the state. (If you operate your business from home, that could jeopardize your privacy).
  • If served with a lawsuit or subpoena, you may be served in front of your customers and staff members.
  • If you spend ample time out of the office during the workweek or go on vacation, you will risk not receiving important documents on time.
  • If you relocate your business, you must update your information with the state.

To avoid these downsides, consider hiring a third-party registered agent since the cost is minimal.

The Prosperity Experts can act as your company’s registered agent in any state and ensure that your corporation or LLC stays compliant with services of process, government notices, or legal responses. We serve all 50 states, including Puerto Rico and D.C. To get started, schedule your appointment and one of our associates will be more than happy to assist you.

About the Author

Theresa J. Thomas is the owner of The Prosperity Experts, a Professional Corporate Service Company, that provides business support services to entrepreneurs and business startups. Theresa has a combined thirteen years of working in the financial sector and has developed a skill for identifying financial solutions for the clients she serves. To schedule a consultation, call (888) 686-3323

Read more blog posts here.

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Parking

There are parking meters, two paid lots, and a paid parking garage on 8th street. Monthly Passes are optional. 

These are the designated parking options when visiting The Presley Post. 

Do not park in the lot behind our building. This is a violation and your car WILL BE TOWED at your expense. NO EXCEPTIONS.

This lot is reserved for the law office upstairs and it is being watched.

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