In any state in which they do business, a business owner should not be physically present. Therefore, in order to provide any substantial legal or tax documentation that may be provided to a business within a given state, it needs a reputable third party named. A registered agent shall be recognised as the responsible third party appointed by the LLC to accept, on behalf of the LLC, service of process notifications, correspondence from the Secretary of State and other official notifications, such as tax forms and notices of litigation. A registered agent is based in the same state as the establishment of a business company. An owner or a member of the business may be a registered agent.
Do you need a registered agent?
If you operate your own small business, chances are your state requires you to have a registered agent. According to the law, all companies are required to have a registered agent who is eligible to receive important documents during normal business hours. If you don't have a registered agent in each state you do business in, you may be forbidden from doing business in the state until this oversight has been fixed. You must, therefore' register' your designated agent in each state in which your company is registered by filing the appropriate paperwork with the state. The registered agent of the company must be based in the state where the business is registered; the registered agent must have a physical address in the state as P.O. boxes are not allowed for registered agents.
What is the importance of having a registered agent?
The state where your company is registered requires it to know it has a contact person during business hours (So PO boxes for registered agents are not acceptable). If you do not have a physical location in that jurisdiction, you need to have a registered agent to sign papers on your behalf.
Who should you choose as a registered agent?
First and foremost, the registered agent should be both professional and reliable. It protects business owners from being surprised by a lawsuit represented by a commercial law firm because they did not know the papers had been brought against them. Oftentimes, a business owner, official or high-ranking member acts as the registered agent. Solicitors are also a common choice for serving as registered agents. Registered agent companies may also serve in this capacity for businesses.
What if I don't have a registered agent?
If you do not have a registered agent for your business, you may face the risk of falling out of "good standing" with the state you are registering in. Penalties may include revocation, fines, and the inability to enter into legal contracts or gain access to the state court system. Furthermore, reinstatement proceedings include further expenses and filings.