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If you are considering starting a business
as a corporation or as a Limited Liability Company (LLC) one
of the first formalities you need to comply with, is choosing
a registered agent. Even in the event that you register as
a foreign corporation or LLC and start trading in a new state,
you would need to select a registered agent.
There are a number of things you need to
know while choosing your registered agent. By choosing a particular
agent, you authorize him or her to receive mail related to
the tax and legal matters of your company. It is imperative,
therefore, that your registered agent owns or rents an office
premise and possess a physical address. A registered agent
with only a PO Box will not serve your purpose.
You must also ensure your registered agent
is available at the address provided during normal business
hours to receive your mail. Your registered agent's address
is made available to the public and all important documents
sent by the state such as the Notice of Litigation or Service
of Process is directed to this address. All tax documents
are also received by the registered agent on your behalf.
There is another scenario where the registered
agent comes in handy. When you form a corporation or a LLC,
most states require you to provide a legal address. The address
of your registered agent is an excellent alternative to this
and is enough to fulfill the requirement. If your corporation
or LLC is branched out over a number of states you would require
a registered agent in each of these states. Service providers
or hired professional registered agents serve the purpose
in this case.
You may wish to act as the registered agent
of your own business. However in such cases, remember that
you will encounter the following disadvantages:
- You are liable to receive a huge quota of junk mail
addressed to your business.
- Frequent address changes may lead to a situation
where you would have to pay taxes to file change of
address with the state.
- You can also face embarrassing situations at times.
For instance, in a case of litigation, members of
the law enforcement agencies may come and deliver
the Service of Process to you himself.
- There is only so much you can do yourself each
day. Opting to handle your mail as well, along with
all the work related to business, can be very hectic.
More than anything, it could lead to a situation where
you may end up losing or missing out on important
documents, such as Service of Process and tax documents.
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There are certain things you need to keep
in mind when you are looking for a registered agent. The first
thing is to be sure that the registered agent you hire meets
the specific requirements of your corporation or LLC. In the
event that you do go in for a professional registered agent,
do make sure you enquire into the agent’s history.
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