If you have a small business or corporation, your state may require you to have a registered agent and most states do.
However, even if your state doesn’t require you to have a dedicated registered agent, you should consider getting one anyway.
What Is a Registered Agent?
A registered agent is a responsible third-party conducting business in the same state as your business and who is designated to receive service of process notices, correspondence from the Secretary of State, and other official government notifications, usually tax forms and notice of lawsuits, on behalf of the corporation or LLC.
Why is this Important?
The state where your business resides needs to know that it has a contact person for your business in the state at all times (that is why, PO boxes are not acceptable for registered agents). If you don’t have a physical location in that state, the requirement is especially urgent that you have a registered agent to accept documents & contact requests on your behalf.
What Are the Benefits of Having a Registered Agent?
Not missing important documents, you will not have to accept potentially embarrassing legal and tax documents in front of clients. Also, as your registered agent’s address will remain the same, you can easily change your business’ physical location without necessarily having to file more paperwork to change your address with the state for each and every move.
What happens if I Don’t Designate a Registered Agent?
There is always risk of not being in “good standing” with the state in which it is registered. Penalties can be assessed, such as, license revocation, fines, and the inability to enter into legal contracts and/or gain access to the state court system if timely communication is not maintained. Reinstatement requirements could include further monetary, civil, and possibly criminal sanctions as well.