Using Registered Agent Services to Avoid Legal Trouble

Using Registered Agent Services to Avoid Legal Trouble

Several variables are about to 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.

According to recent studies, the United States has approximately 30.2 million registered and active companies. It is strongly recommended that companies appoint a registered agent to secure future success. Entrepreneurs starting a new business can visit this website by The Really Useful Information Company (TRUiC) for detailed articles on, not only business formation but on registered agents as well.

All state-registered business entities, such as LLCs and corporations, must have a registered agent in the state in which they were created or conduct business. In addition, every state mandates that the registered agent for state documents be assigned a specific physical street address.

What is a Registered Agent?

A registered agent is also known as a resident agent, statutory agent, or agent of record, and is technically known as a “registered agent for service of process.” It serves as an agent for the registered business, receiving legal paperwork on its behalf.

Primary communication between the business and the state may be included in these documents in the form of the following:

  • Documents from the Internal Revenue Service, the Franchise Tax Board, and other government tax agencies.
  • Reminders for submitting the statement of information and other information given by the secretary of state are typical corporate filing paperwork.
  • When others wish to formally contact you or provide you notice, they will use notice-of-litigation mail (a letter that starts lawsuits) and legal paperwork.

Failure to have a properly registered agent for your business could result in fines and the loss of your company’s good standing with the state. As a result, it’s critical to keep proper corporate records with the state so that you don’t miss out on important legal paperwork. Most states need businesses to select a registered agent in order to comply with state regulations.

Why You Should Have A Registered Agent

You may believe that it makes no difference if your business address and related registered agent are made public, and you may choose to act as your own registered agent. Keep in mind that the registered agent’s job is to accept service of process. You will be served at your place of business if your company is sued or is involved in a lawsuit. Think about how customers or patrons could react if they observe you being served. Is it possible that this would harm your reputation? Would it stoke unfavorable rumors? Hiring a competent registered agent preserves your anonymity, not just in terms of your address, but also in terms of your business dealings.

You already have a lot on your plate as a business owner. You may be handling many jobs within your company, especially if you run a small LLC. It’s possible that you won’t be able to accept the service of the process. By hiring a competent registered agent, you can avoid paying an hourly employee and instead pay a small fee for a very vital service. Professional registered agents are also aware of legislative changes and breaking news that may have an impact on how service is accepted. Hiring a registered agent to accept service of process and keep track of legal notices can free up your time to focus on what matters most: running your business and producing money.

Penalty For Failing To Have A Registered Agent

One of the most important functions of a registered agent is to act as a point of contact for the service of the process. The act of notifying an individual (or organization, in this example) of imminent court proceedings and allowing the recipient to respond is known as service of process. If your company does not have a registered agent on file, it could be sued without you knowing because there would be no one to contact. If you do not answer, the consequences could be severe, and a default judgment could be recorded against your organization.

Because you are required to have a registered agent and publicize his or her contact details, failing to do so could result in fines and penalties. If you don’t have a registered agent, you risk losing your certificate of good standing, which can lead to a slew of issues, including (but not limited to) personal culpability. The simple act of failing to have a registered agent could result in a slew of sanctions.

Final Thought

Registered agent service is vital for LLCs and companies to retain good standing and keep their businesses running without running into compliance concerns.

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. You may be confident that by choosing a registered agent service for your business, you will minimize the danger of non-compliance, avoiding penalties and fees from the state, as well as saving time to run your business.