Business owners can elect to serve as their own registered agent, however there are a number of reasons a professional registered agent is a better option for your business.
Every business operates differently and the decision to use a registered agent will depend on many different factors, like how knowledgeable the business owner is about the legal process. For small businesses, using a registered agent service might seem like another expense they have to plan for, but in the end, it might actually be the cost saving option.
Time Saving
Most owners of a new business will spend a lot of time trying to build a customer base and making the business a success. The compliance process can be extremely time-consuming especially for those who are not knowledgeable about all the requirements.
Having an outside resource such as a registered agent service to control and manage deadline dates, renewals and other business activities required, takes some of the pressure off the business owner.
Compliance to State Rules and Regulations
The filing process can be complicated especially if a business is operating in more than one state. There are a variety of forms and information required from different sources which can be very time consuming.
A registered agent service is an expert on the state rules and regulations and can assist a business in saving a lot of time. By not using a registered agent service, a business can run the risk of being non compliant.
Availability Rules
One of the criteria to meet as a registered agent is availability Monday through Friday during normal business for a 52 week year. A registered agent must also have a physical address listed. Hiring an individual to perform this role is risky as it is a huge responsibility that not many will be able to fulfil.
The business might also operate outside of regular business hours which will make it near impossible for an owner to also serve as a registered agent for the business.
Penalties and Fines
Penalties and fines imposed by the state for missing deadlines can be substantial and a huge burden to bear for any business. Using a registered agent service can avoid the pitfalls of missing important deadlines and maintain the business’s good standing with the state department.
Confidentiality
Most business owners would like to keep their legal matters private. Most lawsuit or legal documents are delivered by law enforcement and might be an embarrassment to the business if customers had to witness the interaction.
Having important legal documentation sent to a registered agent service office means that sensitive matters can be kept private. The service will accept the legal documents on behalf of the business and go through all documentation in order for the business to respond in the correct and timely manner.
The Business is Home-Based
A company’s registered agent’s address is public record which means marketers can use the information for unsolicited mail. Many business owners might not want their home address to be inundated with a lot of junk mail and will then choose to make use of a registered agent service to avoid this.
The Business Operates in Other States
According to regulation, a business must have a registered agent in every state it operates in. It must be a physical address and not a post box. Using a registered agent service reduces the need of having multiple offices in multiple locations and all services can be dealt with by one company.
Some of the best registered agent services in 2022 for businesses to use are:
– Northwest ($125 per year) – Best for small businesses.
– ZenBusiness ($99 per year) – Great customer service and support.
– Incfile ($119 per year) – Good option for businesses on a budget.
– Rocket Lawyer ($149.99 per year) – Best for ongoing legal services.
– LegalZoom ($299 per year) – One of the most preferred and reputable companies to use, although quite a bit more expensive.
Although pricing varies, most of the registered agent services listed above provide similar services. It is advised to thoroughly research all of the agents and then decide which one will suit the need of the company best.
