When it comes to creating your company in the USA, you need a lot of support. A registered agent is one of them. Find out here why.

One of the initial requirements to realize a business project in the USA is to register a company in the state through a process that can be carried out even without traveling or being physically present at the location.

This process involves appointing a registered agent to represent your company and receive government correspondences from the state.

If you’re unfamiliar with this term, let’s begin by defining it.

What is a Registered Agent?

A registered agent, also known as a resident agent, is a person or business entity that represents a company when it comes to receiving government correspondences, all kinds of documents, and legal reports, acting as a liaison between the company and the state.

All states require you to have a registered agent, which can be a professional service, a friend, a colleague, or even yourself, provided you meet the state’s requirements for providing this service.

What Does a Registered Agent Do?

Their role involves handling various reports and reminders on behalf of the company: new or pending lawsuits, legal filings and reports, and, of course, government-issued summonses.

Furthermore, the registered agent aims to help the company comply with corporate regulations and maintain up-to-date documents and forms. This way, problems with the state are avoided, and the company remains in good standing.

Whether you run a small business or a well-established corporation, your designated registered agent will handle the notification and management of the following:

Tax forms.
Reminders.
Legal documents.
Official government correspondence.
Lawsuit notices.
Process notifications.

Why Hire This Service?

Working with a registered agent is one of the best and most informed decisions a business owner or corporation owner can make due to the ease and benefits it brings. Here are some of those benefits and why you need a professional registered agent.

Avoid unnecessary fines and maintain the company’s good standing in the state where it’s registered.
Provides solutions to any tax and legal-related issues.
Protects your personal data from becoming public.
Possibility to expand the company to other states.
Receives timely notifications and reminders related to the company.
Compliance with the law.

Requirements for Registered Agents

To assume the role of a registered agent, you need:

- To be at least 18 years old.
- To have a physical address in the state where you want to open your company.
- To observe the normal business hours at the registered address.
- - Be a resident of the state where your LLC is formed.

It is of utmost importance to evaluate and select a responsible person who can meet the requirements and guarantee their role is carried out efficiently and reliably due to the confidentiality of the documents they handle.

While any person or entity that meets the aforementioned requirements can act as a registered agent, it is recommended to hire a professional for the position.

Being your own registered agent is possible. However, it is not recommended for various reasons. Among them, the agent must be present at their registered address during normal business hours to receive various legal documents and reports, and must stay current with every notification and reminder from the state.

Although being your own agent can be cost-effective for the company, it involves a lot of time and responsibility that a professional registered agent can easily handle.

How to Choose a Registered Agent

Choosing a registered agent is a task that must be done with great care and attention.

Yes, perhaps nearly anyone meets the requirements. However, this designated person will handle important matters and a significant amount of legal information from the state.

Many small business owners who are just starting out decide to be their own registered agents. Perhaps for a small team, this is okay, but you must consider all that it entails, factors like business hours and the potential fine or other penalty if a document arrives while you are out of the office.

Another common option is to designate a friend or family member to fulfill this role due to the existing trust between the parties involved, disregarding the fact that, beyond personal connections, this job requires a bit more responsibility with legal documents.

Indeed, the company could save a significant amount of money by choosing its registered agent from among family and friends or even by appointing oneself. However, hiring a professional agent dedicated to this will prove much more beneficial in the long run for the company.

That’s why, before deciding, a small comparison should be made between different registered agents to choose the most convenient and the one that best fits the requirements.

A short list of considerations to have when choosing your registered agent, beyond the basic requirements, could be:

- 1. Evaluate the services they offer. Do they have additional services?
  2. Will they designate their address as the registered office address?
  3. Honest, responsible, and timely communication.
  4. Responsibility with notifications and reminders for annual reports.
  5. Confidentiality of documents and notices.