Business formation statistics show that the U.S. sees a record increase in new business registrations, so perhaps it is time to look at ways to ensure a smooth startup process.
To ensure business success, a registered agent service can help corporations with their legal requirements. In the U.S., every business must appoint a registered agent. Below we will discuss precisely what they are and why we need them.
What is a registered agent?
A Registered Agent is a person or company who receives critical information, official documents, and correspondence from the state, federal, and other government bodies. They send this information to your LLC or corporation so that you can reply correctly and on time. The registered agent becomes the point of contact for any legal documents and communication.
A registered agent is responsible for receiving the following correspondence:
- Official letters and communication from your state's Secretary of State, Division of Companies, or other state office in charge of LLCs and corporations
- Notices of service of process, this includes, for instance, when your corporation or LLC is sued or needs to make a court appearance
- Correspondence, information, and notices from the federal government
- Forms of taxation and payment requests
- Requests for permissions, corporate filings, or reports to be completed
Register agent requirements
Incorporation Rocket explains that you have three options when choosing a registered agent: hire a registered commercial agent, be your registered agent, or choose a friend or family member as your registered agent. There are a few requirements that must be satisfied in order for you or a friend or family member to be your own registered agent:
- Must be 18 years old or older
- Must have a physical address in the state where the corporation is operating
- Must be available to receive documents during the corporations working hours
Who needs a registered agent?
All businesses that are formed as legal entities must appoint a Registered Agent. These are the types of businesses: Limited Liability Company, S Corporation, C Corporation, Limited Partnership, Limited Liability Partnership and Non Profit Companies. All of these business entities must have a Registered Agent, regardless of the state in which they are registered.
When you choose to be your own registered agent, you must be available to receive documents and correspondence during the hours you specify, which limits your flexibility and freedom. That is why it is more advantageous to hire a registered agent service. Hiring a registered agent service has numerous benefits. There are legal requirements for filing reports and other government documents; a registered agent is there to keep the LLC informed of these requirements and to notify them of deadlines. This ensures that the LLC is legally compliant.
Below is a list of the best registered agent services in the U.S.:
1. ZenBusiness
ZenBusiness is well-known for its excellent customer service and excellent value for money. When you subscribe to their service, you get one year of registered agent services with its formation package for a starting price of $99 per year. You can continue to use their service after that for $119 per year. They are known for being very socially conscious and having thousands of positive reviews online.
2. Northwest Registered Agent
Choosing Northwest to form your registered agent is an excellent investment. They include a year's worth of registered agent service fees included in their price of only $225 plus state fees. Northwest scans every document you receive, and their service package includes a variety of options. They safeguard your company's data, create compliance calendars, and provide unlimited cloud storage. Your company will also be given an online account through which you will be able to access business documents and forms. Northwest is unquestionably good value for money. Northwest received 4.5 stars in a Google review completed on August 8, 2021. The company has a lot of experience and offers great customer service.
3. IncFile
If you're on a tight budget, Incfile is your best bet. They provide one year of free registered agent services, after which you must pay an annual fee of $119. The Incfile website includes a learning centre where LLC owners can find useful information about LLC formation. Sending SMS reminders to LLC owners to keep them up to date on the status of their documents is a fantastic feature they provide. Unfortunately some add-ons are not included in the initial price, so if you were to need more features than offered, you are going to pay a bit more. All and all, IncFile offers a reasonable registered agent fee.
What if you fail to have a registered agent?
If you do not assign or provide the secretary of state with the details of your organization's Registered Agent, you may face serious consequences, including: legal problems, the dissolving of your business and losing your status as a legal business.
There are many advantages to hiring a registered agent service, as seen above. Whether you choose to hire a registered agent or serve as your own, it is important to remember you have a legal obligation to have one, whether you are a corporation, an LLC or a NGO.