A registered agent serves as a point of contact for an active company. This agent receives government correspondence, service of process notices, and documents related to compliance on behalf of the business owner or company. 

The only job of this individual is to serve as the agent for the service of process for that company. Once the agent receives the documents, they must forward the documents to the active company. 

If the agent cannot receive the documents on behalf of the business, problems could arise. For this reason, many LLCs and corporations choose to hire a third party to take on this role. 

How is a registered agent of benefit to you as a business owner? What could happen if you do not have a registered agent? Why should you consider hiring someone to act as a registered agent on your behalf? 

The Benefits of Having a Third-Party Registered Agent

Many benefits come with hiring a third-party registered agent. These benefits outweigh the expense of using an independent party. 

The registered agent handles official business correspondence on your behalf. This ensures you overlook nothing. 

Registered information for a business may be a matter of public record. This exposes your personal address, particularly when this business operates out of your home. Using a third-party registered agent maintains your privacy. 

Legal matters remain confidential when you use a third-party registered agent. Nobody will arrive at your home or business to deliver a legal notice where customers or employees may see them do so. 

You won’t be required to remain in the office during normal business hours. Current law requires the named agent to be available at the address identified in the paperwork during normal business hours.

 If the agent isn’t present, problems could arise. A third-party registered agent is always available during normal business hours, as this is their job. 

You will need a registered agent if you want to expand your business to other states. To serve as a registered agent, a person must live in the state where they will take on these duties or have the authorization to do business in that state. 

The Penalties for Not Having a Registered Agent

You must have a registered agent to operate in a state in America. When registering the business with the state, you must list this individual on the paperwork. If there is no person listed as a registered agent, the state won’t allow the business to register. 

If your business doesn’t have a registered agent available during normal business hours, you might find the state revokes your professional license. You are not meeting the requirements of operating a business in the state, so the state revokes your ability to do so. 

The state may also take away your Certificate of Good Standing. When you lose this certificate, you will find there are far-reaching consequences. 

You lose naming rights and another person or party may take the business name. Securing financing for the business becomes challenging, and you can’t sue on behalf of the business. 

You lose your right to due process. The registered agent serves as a point of contact for receiving service of process. 

This act alerts you to impending court proceedings so you can respond in a timely manner. If there is no registered agent listed in the state, you may not receive notice that your business is being sued. 

This could lead to a default judgment being entered against the business. Legal documents are among many important documents a registered agent may receive. Other documents include government notices and annual reports critical to business operations. 

Moving business operations is a hassle. If you decide to serve as your own registered agent, you must update the state any time you move operations. 

Using a third-party registered agent eliminates this requirement. Although your business is moving, your registered agent remains in place. You will remain in compliance, even if you choose not to share the updated business information with the appropriate parties. 

Most importantly, a failure to have a registered agent could lead to the state imposing fines on the business. Every business owner is in operation to make a profit. The fines reduce this profit and can actually be hefty enough to require you to close the doors of the business for good. 

The Benefits of Hiring a Third-Party Registered Agent

When you hire a third party to serve as your registered agent, you gain more freedom to carry out your duties as a business owner. If you have multiple locations for your business, you can move freely between these locations. 

You won’t need to worry that you will not be present when official paperwork arrives and a registered agent must sign for it. The designated registered agent handles this for you. 

The same holds if you travel for business regularly. You won’t be penalized for not being present when something arrives that a registered agent must sign for. You have someone to sign on your behalf, so you can travel and benefit your business knowing this task is being handled. 

Individuals who work remotely need a registered agent who can stand in for them when they aren’t available. Why should you remain chained to a desk when you can work remotely and enjoy life more? Hiring a registered agent allows you to have more time for things you enjoy. 

In addition, if you hire a registered agent, your personal information won’t become public record. The agent’s name and address appear on official documents, so you maintain your privacy. The agent receives official documents and forwards them to you in a timely manner, so you don’t miss out on important correspondence but also keep your life private. 

If you are just starting a business, consider hiring a registered agent. The cost is minimal compared to the peace of mind you receive because you know you won’t encounter legal difficulties if you miss any time from work. 

For those who have been in business for an extended period, a registered agent is essential. This agent provides those in leadership positions with more time to handle other tasks, including those that pull leaders away from the workplace. 

Learn more today about the benefits of hiring a registered agent. When you do, you will see why this is one service every business owner should take advantage of. The benefits of hiring this professional make every penny spent on the service worthwhile.