Home Business Magazine Online
The value of time as an essential resource cannot be stressed enough, especially in business operations. As a decision-maker of a company, you would rather focus on the tasks that truly need your time, talent, and treasure. Hiring a registered agent for your business helps to free up time for the wildly important activities that run a business.
Success usually comes to businesses that hold an edge over their competition. This edge may come in varying forms. There are times when employing the right person or service provider can shape the conditions for breakthrough results.
As technology advances, the domains required to run well-oiled business operations also increase. Twenty years ago, CEOs need not worry about social media statistics. Today, companies consider these numbers as advanced analytics that must always be considered. This shows how businesses of today’s world have more to think about.
This firms up the need for registered agents more so. The idea of hiring a registered agent means additional costs and may not be enticing for small businesses, however, this perspective may change once you fully understand what registered agents are, and when your business needs them.
What is a registered agent?
The first thing to consider when deciding to go this route is: what is a registered agent? A registered agent is a person or company that receives legal documents, service of process, and official notes on behalf of your business. This is a requirement upon the registration of your business entity to its state of registration. The registered agent must have a physical address in the state of registration.
When should you hire an expert or do it yourself?
The owner of a business can be listed as the registered agent. This applies to every state. Hence, it presents a cost-effective solution. However, this pushes the burden, responsibility, and liability towards the owner. Which may not entirely be positive for the organization. Here are other choices who can serve as a registered agent:
- A business lawyer
- A business manager, officer, partner, or a member of the business
- A service provider, companies that are experts in this field
Any of the mentioned choices can be tapped as the registered agent. However, they must fulfill the following requirements:
- Age: For individuals, they must be no younger than 18 years old.
- Physical address: Should have a physical address within the state of registration. This is usually referred to as the registered office. You must also take note of the P.O. boxes are not considered as physical addresses.
- Availability: Must be available Monday to Friday from 9:00 am to 5:00 pm to receive mail and sign official documents.
This comprises who can serve as your registered agent. But you must also consider what type of business you are operating. These types of businesses are required to have a registered agent:
- Limited liability companies
- Limited partnerships
- Limited liability partnerships
You now have sufficient information as to who you can hire as your registered agent and when your business is required to have one. Let us now reinforce that by showing you the benefits of hiring an expert as a registered agent.
Benefits of setting up your business with a registered agent
The obvious benefit of having someone take the responsibility of receiving legal documents, service of process, and official notes on behalf of your business is that it frees up time. Answering these compliances needs a high level of know-how for it to be expedited.
You may be caught up in the tedious process of researching the proper formats and terminologies to comply with the requirements. You don’t want to end up being an expert in these matters, right? You want to be an expert in your chosen field of business.
You also manage the risk of non-compliance to these requirements. Permits, clearances, licenses, and other impediments can become a serious problem when left unattended. These crucial business documents must be dealt with within the proper time so that your operation will be unhindered. However, you won’t have to worry about them if you hire an expert.
It also protects your and your business’ privacy. It shields your business from unwanted communications because your address is clear from public records. It also prevents untoward incidents that involve lawsuits and Service of Process.
It will be detrimental to the business for these to be delivered during your operating hours in front of employees and customers.
The ultimate decision whether hiring an expert registered agent or not still falls upon the owner. Lastly, you may consider the cost. For minimal costs annually, the time it frees up for you to focus on your crucial operations that will help your business grow, makes it a no-brainer business decision to have one.
The post What Is a Registered Agent: When Exactly Does Your Business Need It? appeared first on Home Business Magazine.