Entrepreneurs can choose who will serve as their registered agent when forming their business. After incorporating as an LLC or corporation, most states require a business to appoint a registered agent to stay compliant with legal requirements.
A registered agent (RA) is an individual or a third-party entity that serves as the official point of contact for receiving legal and government documents on behalf of the business. This includes important paperwork like tax forms, legal notices, and compliance reminders. The RA is responsible for ensuring that these documents are organized and promptly forwarded to the business owner, helping the business stay on top of its legal obligations.
A third-party registered agent is a professional service hired to act as the registered agent for your business. This option can be especially helpful for business owners who want to maintain privacy, ensure consistency, and receive timely notifications without needing to manage this role themselves.
Who Can Be A Third Party Registered Agent?
Some entrepreneurs choose to act as their own RA, while others turn to a third party service for assistance. When is it a good idea to work alongside a third party registered agent, and why do you need this service? Let’s take a look at the benefits that come with appointing a third party RA for your business.
1. Third Party Registered Agents Are Physically Available
Registered agents must meet specific criteria to fulfill their duties, with one of the primary requirements being their physical presence in the state where the company is formed. A registered agent (RA) needs to have a physical street address in the state—P.O. Boxes are not accepted. Additionally, the agent must be a resident of the state. If you don’t live in the state or lack a physical address, you cannot serve as your own RA.
However, if you meet the residency and physical address requirements, you could technically act as your own registered agent. Beyond location, RAs must also be available during general business hours, typically from 8 AM to 5 PM, Monday through Friday, to accept legal documents and other critical paperwork.
For many entrepreneurs, managing these responsibilities while running a business is challenging. This is where a third-party registered agent service becomes invaluable. These services ensure that there’s always someone available to accept legal notices or important documents on your behalf, even if you can’t be in the office during business hours. Using a third-party registered agent provides peace of mind, knowing that nothing will be missed, allowing business owners to focus on growing their business without interruption.
2. Third Party Registered Agents Are Organized
A startup receives a lot of paperwork in its early days in business. Some of these documents include time-sensitive items like annual report notices while others may just be junk mail.
Entrepreneurs don’t need to worry about sitting down and sorting through these documents on their own. A registered agent will be able to organize and separate junk mail from important notices from the state before delivering the documents to you. As the gatekeeper between your business and the state, an RA also understands which pieces of mail to prioritize in terms of time sensitivity. They will deliver high-priority paperwork quickly, ensuring nothing is accidentally forgotten or lost. This gives you more time to meet deadlines and allow your small business to remain in compliance with the state. A third party registered agent will also keep you up to date on what the state needs from you in the near future, too.
3. Third Party Registered Agents Provide Privacy
Guess what happens if an entrepreneur decides to act as their own registered agent? Unwelcome guests could arrive to the physical address they provided and publicly serve them with legal paperwork. Sensitive matters, like lawsuits, are embarrassing to receive. If customers saw what happened, would it negatively impact the way they view your business?
Designating a third party registered agent service, however, helps ensure discretion for your small business. Documents that the business receives from the state are addressed to the RA’s name and address information. This adds an extra layer of privacy between your business and the public. Registered agents are impartial receivers of important paperwork. They will collect your documents, organize everything, and deliver them to you discretely. This provides peace of mind in knowing that you will receive these documents privately and may focus on your work.
Ready To Work With A Third Party Registered Agent?
Most states do require LLCs and corporations to designate a registered agent for their business. You may act as an RA or designate the duties to a third party registered agent service. For a nominal fee, a registered agent will maintain records, ensure your privacy and security, and keep your business in good standing. Your paperwork, and compliance of the business as a whole, is safe in the hands of a trusted RA.