Helping to share the web since 1996

Why using a registered agent service is advantageous to your business

What is a registered agent service? 

A registered agent service is a legal entity with a valid business address trading in the same jurisdiction where legal documents are served. The registered agent is also responsible for receiving any legal documentation pertaining to the business and will forward it onto the businesses legal team or representative. 

Many business owners choose to hire a third-party, but a business can also choose to serve as its own registered agent. That leaves the question: “If it is possible for a business to act as its own agent, then why is it advantageous to use a registered agent service?”

This article looks at the significant advantages of using a registered agent service to businesses.

  1. Saving time & avoiding hassles
  2. Ensuring compliance
  3. Flexible business hours
  4. Privacy
  5. Legal Trading

No two businesses are alike, but all can benefit from one less aspect to worry about.

  1. Saving time and avoiding hassles

Legal compliance can be a time consuming and extremely labor intensive process. It can be confusing having to fill out extensive forms using information from different sources. Having an outside third-party deal with the complicated paperwork means a business owner can focus on the important aspect of building and running the business.

  1. Ensuring Compliance

It is not necessary to be a compliance expert when making use of a registered agent service. These services have internal experts that are closely familiar with state and federal legislation. Most registered agent services send out notification of filings to their clients ensuring that all deadlines are met.

They can also provide additional services like assisting a business with finding state-specific accountants or legal entities. In case of a natural disaster or theft, a business can rest assured that copies of all their corporate documents are stored with the registered agent service.

  1. Flexible business hours 

The registered agent for the business must be available at all times during business hours. This can be a problem when a business keeps irregular hours or during times of vacation. Using a registered agent service gives a business owner the peach of mind knowing that documents will be filed on time. It also provides the business owner with the flexibility of choosing their own business hours and more time to focus on the business operations. 

With a dedicated team that has the businesses best interest at heart, a registered agent service makes it easy to open an additional business in another state or to expand the business to many states. A business needs to have a registered agent appointed for each state it does business in. Choosing a nationally registered agent service means that all these services can be handled by one company.

  1. Privacy

At some point in time a business might receive a notice of a lawsuit. Oftentimes these notices are delivered by law enforcement professionals and can be an unpleasant experience particularly when done in front of customers or employees. 

The registered agent service’s address will be listed on the registered documents instead of the business office address. This means that all legal notices will be delivered to the agents offices sparing the business from a potentially embarrassing situation. Legal notices can then be delivered promptly and privately.

  1. Penalties

For some businesses, having to pay additional fees for a registered agent service might seem futile. However, the penalties for not having a registered agent are extensive and a business may risk losing their licence to trade. In some cases a business can even be at risk of having criminal charges filed against them. 

Final Thoughts

Not all registered agent services are created equal and they all have different packages and services they offer. It is always advisable to look for a company with a reputable name and long record of satisfied customers. National registered service agents will have expertise in many states and will be able to help businesses of all shapes and sizes.

back to news headlines