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How to choose a registered agent for LLCs

How to choose a registered agent for LLCs

Limited Liability Companies or LLCs are business entities that protect the assets of their owners from lawsuits and creditors related to their business debts.  This  means the members are not liable for the company’s debts or losses.  A registered agent acts as a communication representative for LLCs , and companies  generally require them.  Choosing a registered agent for one’s LLC is fairly straightforward, but business owners must consider certain factors before and during selection.

What are registered agents?
Before diving deep into the “hows” surrounding the choosing process of registered agents, it is important to learn about the concept of registered agents and how they function.

These agents are responsible for receiving mail on behalf of a business entity. Once chosen and integrated with an LLC’s business operations, registered agents ensure that their employer does not miss important paperwork related to tax notices, lawsuits, and other business documents. For operational purposes, businesses must have a designated registered agent in every state they operate in.

Speaking of  lawsuits, company-registered agents are also responsible for receiving subpoenas, court summons, and other official and legal correspondence. Registered agents must pass these documents along with the appropriate person for their LLC to proceed.

Who can act as registered agents?
A registered agent does not have to be a single person , it  could also be a group of people or a company. The requirements for becoming a registered agent also vary from one state to another. Some of the general guidelines that apply across the board include:

  • The agent must be available at their registered address (a physical street address) during normal business hours.
  • The agent can be 18  years  or older or an organization providing registered agent services.
  • While a corporation cannot act as its own agent in multiple states, either one of its owners or employees can act like one.

Registered agents make the daily functioning of an LLC a breeze as they handle the tedium of paperwork and scheduling aspects of the organization.  This enables businesses to focus their resources on  their core operations and achieve efficiency by harnessing energies on a singular purpose and end result. In this way, registered agents have  come to achieve  a near indispensable status for LLCs today.

Factors to consider while selecting a registered agent
Certain elements become non-negotiables when  it comes to  selecting a registered agent from a sea of options for LLCs.

Selecting a professional service for the job
Many companies will be tempted to recruit their own employee, officers, or owners to act as registered agents.  After all, on the surface, the tasks of a registered agent appear to be a smooth process:  just  possess and occupy an office that stays open during business hours.  Recruiting a known person from the workforce is much more economical than hiring someone new. Businesses need to avoid it as it would not work well.  Having a professional registered agent means that companies do not have to fret about filing updates with state or other public authorities every time there are any changes in the  contact information of the business  or its office location.  Professional services that carry  tasks  of a registered agent provide critical correspondence to companies and act whenever legal issues arise against a given organization.

Prioritizing availability and expertise
A registered agent’s primary duty is to be available and  cater to the needs of the company at all times .  The concept of their physical presence throughout regular business hours is incredibly unusual and valuable. The prompt availability of the registered agent ensures that hand-delivered legal documents or mailed documents that require a given addressee’s signature get the proper time and attention they warrant.

In addition to availability, another major quality that registered agents must have is expertise. These agents must possess the required knowledge about the state’s business entity and adhere to compliance rules so businesses and their operations are unaffected.

Considering value, not just price
LLCs that cut corners to save costs  are likely to  opt for the cheapest registered agent they can find in the job market.  It is important for companies to look  at the expertise and value a given agent brings to the table. Value is quantified by the ability to provide foolproof, immediate document delivery  as well as  electronic customizable notifications to the clients. Getting these things involves  the combination of  hands-on service rendering and the knowledge to operate state-of-the-art software. All in all, one must hire registered agents who offer much more than just their base tasks to a given business.

Nationwide scope
Registered agents offer state-specific services, which limits their scope to provide services for larger organizations. More importantly, a limited scope of a registered agent results in companies having to spend exorbitant amounts of money on multiple agents for each state in which they run their operations. Choosing a nationwide registered agent service enables businesses to meet each state’s requirements and oversee every filing that comes from state or national authorities. Having a single service provider or person overseeing all registered agent responsibilities is a massive help for companies.

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