Several variables contribute to an increase in employment in the United States. Business recovery and the rising number of startups are two examples. According to the US Bureau of Labor Statistics, overall employment is expected to grow by 11.9 million jobs from 2020 to 2030.
The increase of startups is very important for the U.S economy. It is important to note that these startups are required to adhere to certain business formation laws. One of these laws is the appointing of a registered agent. Every state in the United States requires legal entities (LLCs, partnerships, and corporations) to have a registered agent, also known as a statutory agent or an agent of process.
A registered agent can be defined as an individual or business that accepts tax and legal documents on behalf of your business. Some of the top registered agents in the US have been known to help keep businesses compliant when it comes to fling. There are many advantages to having a registered agent. Below we will discuss in detail 10 reasons why every business should hire a registered agent:
1. Saves You Time
Complying with regulations can take a lot of time and effort since it typically necessitates filling out lengthy and sometimes confusing forms based on data from a variety of sources. Most business owners would rather have an outside source handle the details of compliance so they can concentrate on growing and running their company.
2. Legal Benefits
Legal compliance is unlikely to be an area of knowledge or interest for startup entrepreneurs. Registered agent service companies specialize in compliance and are well-versed in state and federal regulations and deadlines. They will assist you in staying in compliance, avoiding excessive state penalty costs, and maintaining your company’s good standing in your state of formation and/or qualifying as your compliance partner.
3. Ensure Privacy
When a company is served with a Service of Process, it is generally delivered by local law enforcement. Most business owners do not want police officers to serve notice of a lawsuit in front of their customers, employees, or neighbors (in the case of home-based enterprises). Using a professional registered agent ensures that any Service of Process is received promptly and with confidence.
4. Less Junk Mail
The address of a company’s registered agent is public information. This means that anyone can use it, including marketers. It’s not unusual for the registered agent to get a large amount of “junk mail” for the company. The volume of unsolicited mail received by your company will be reduced if you use a registered agent service provider.
5. More Freedom
During normal business hours, a company’s registered agent must be ready to accept vital documents when they arrive. If you work your own hours, you might want to consider hiring a professional registered agent service provider to ensure that you don’t miss any vital correspondence.
6. Incorporating In Another State
A registered agent having a physical location in the state where your company is incorporated is necessary by law. If you have a registered agent you can live and work in separate states.
7. Receive Documents On Your Behalf
If your job requires you to be out of the office regularly, such as if you’re a real estate agent or an electrician who is on the road all day, hiring a registered agent service provider ensures that vital paperwork reaches you and your company.
8. Businesses In Many States
When your company registers to do business in states other than its home state, it must have a registered agent in each of those states. Using a registered agent service provider allows you to have one firm handle this vital service in each state.
9. You Use A P.O. Box
If your only address is a P.O. Box or a private mailbox, you cannot serve as the registered agent for your business. A physical address is required for the registered agent.
10. You Can Change Addresses
The registered agent’s address on file with the state must be current. Changing your address necessitates a formal official filing and, in many cases, payment of a fee to the state. You never have to worry about changing your registered agent address with the state or paying the associated filing fees when you employ a registered agent service provider. Whether you move only once or frequently, you merely need to notify your registered agent of your address change.
Registered agent service providers are not all created equal, and they do not all provide the same degree or quality of service. When looking for a professional registered agent, seek one that has a long history of delivering compliance services to businesses of all kinds, as well as one that has its own nationwide network of offices, allowing it to provide compliance knowledge in all 50 states.