The world has started to see a new breed of entrepreneurs that are hungry for success. This attitude to succeed has led to an increase in the number of businesses opening each year in the country. However, most people forget to comply with government regulations which often results in trouble later on. To start a Limited Liability Company (LLC) in the USA, it is mandatory to have a registered agent on board. But what is a registered agent and how can it benefit your business?
What Is A Registered Agent?
Just like how many businesses outsource their business processes to other companies or entities, the same applies to government compliance. When a business is set up, it needs to be registered with the government to receive tax notices, service of process, or even compliance notices. You can choose to do this yourself if you:
- Are aged 18 years or above
- Have a physical address in the same state where the business is formed
- Are available for contact during office hours
However, if you feel like you are not ready to take this responsibility and would like to hire a professional firm to deal with government notices and complaints on your behalf, you can simply hire one.
If your business is operating in more than one state, then you need to have a registered agent in every state your business is operating in. This is because state laws vary and you need to have an agent to ensure corporate compliance while bridging the gap between the government and your business.
Why You Should Hire A Registered Agent For Your Business
There are several benefits of having a registered agent on board for your business corporate compliance.
Following The Law
State laws and rules can change from time to time and registered agents keep themselves updated on these. You might be too busy to know that the tax rule has changed and can get yourself stuck in a sticky situation if you didn’t follow the new rules. Registered agents are there to remind you of changes in the law and things you need to file at your end. They also keep copies of corporate documents giving you a backup.
Peace Of Mind
If your business is small and you’re the one running many aspects of it, things can get difficult to keep track of. You might forget to file your taxes or your annual returns. Perhaps you’re not that well-versed with corporate compliance and panic looking at the paperwork. Registered agents take some weight off your shoulder by allowing you to focus on growing your business while they take care of corporate compliance for you.
Many business owners enjoy privacy and if they were to register themselves as agents, things are not so private anymore as their physical address is out there. You don’t want a lawsuit coming to your doorstep in front of your family. A registered agent uses their physical address and receives every government correspondence mail or lawsuit on your behalf. You can also bid farewell to unsolicited mail with a registered agent.