Are you looking to tap the services of a registered business agent? When you start a business in the US as a corporation or LLC, you must have a business agent.
While you’re authorized to enlist yourself as your company’s formation agent, why take the risk?
One mistake in filling out paperwork and submitting business requirements can lead to disaster. What’s more, it’ll also take a big chunk of your time to accomplish. And we’re sure filling out forms is definitely not why you wanted to become an entrepreneur in the first place!
To the casual eye, a registered business agent’s day-to-day tasks might seem perfectly achievable; filing annual reports, reviewing documents, and having a physical office open during business hours to receive emails and answer queries.
Sounds pretty simple right?
As a startup, you’ll always be tempted to hold onto your funds as much as possible. However, doing so may do you more harm than good in this scenario.
For starters, you’d have to disclose your home address, contact information, and be strapped to the office during business hours. We get it. It’s normal to feel hesitant about trusting a third party to handle confidential information and paperwork related to your business. To help you get one step closer to launching, here are factors to look out for in a registered agent:
Many companies offer registered business agent services. The question is, how can you distinguish the good from the bad?
The role of a registered agent can’t be overstated. They’re in charge of handling business documents, relaying important information, and being available at the registered location during office hours. In most cases, it means staying in an office from 8 am to 5 pm, Monday to Friday.
The first factor to consider when evaluating potential registered business agents is their experience. You’ll need to ask questions like:
- Do they operate in the state you wish to incorporate your business in?
- How long have they worked as a registered business agent?
- Do they have any background knowledge of your industry?
Hiring a registered business agent can give you access to valuable insights into the different processes of company formation. This will help you feel more confident to grow your enterprise in the future.
If there’s one thing all business owners can agree on, it’s that anything can happen at any time. That means lawsuits, subpoenas, and tax notices, among other potential challenges.
Company formation agents are not hard to find. The only problem is finding one that fits your budget. You’ll want an agent who’ll update you on developments affecting your business in the state(s) in which you operate.
It pays to be selective when it comes to choosing a registered business agent. Hiring an unresponsive agent can be inconvenient and costly for you and your business. You risk missing deadlines, suffering penalties, and even possible suspension or dissolution of your business. And it’s all because you were ‘uninformed’, but in reality, they were just buried deep in your mail.
3. Uses updated software and technology
The world has shifted to a more digitized economy. Having a registered business agent with the latest software and technology will be the best decision for your company to achieve success.
As a business owner, you’ll want to promptly respond to any document request or inquiry. After all, you’ll want to ensure you always maintain good standing with the state and your future clients. Would you want to receive subpoenas or tax notices just hours before they’re due? Ideally, company formation agents should use a centralized location or ‘client portal’ that ensures timely dissemination of any important information.
It’s standard for registered business agents to take charge of incorporating your business and submitting documents. The extent of what you pay for lies in the breadth of their other services. Don’t be fooled by business agents offering low monthly or annual fees. This could indicate one or more of the following realities:
- Annual price hikes
- Hidden fees when submitting documents
- Inconsistent services
Registered business agent companies are just like any other business – they have expenses to cover. While saving extra dollars looks good on your credit score, hiring mediocre services can potentially push you closer to failure.
Before hiring a registered agent, it’s recommended to request a full quotation of their services to avoid any hidden fees. Always remember, the price may not be the most important factor. But it also helps to know what you’re actually paying for.
5. Ask for feedback from other companies
If you want to skip all the experimentation, you can check which legal professionals (if any) are helping your competitors.
It’s not unusual for registered business agents to be more proficient in a certain niche. After all, certain states are more honed-in on certain industries. Some companies prefer a particular skill set to fulfill their needs.
When running a business, everyone will face their fair share of competitors. While most see this as a disadvantage, supporting your competitors can actually help your business thrive in the long run. This will help you grow your business and unlock more opportunities to innovate your business.
Finding a competent registered business agent that fits your business will be vital once you launch and grow your enterprise.
With different states offering varying benefits and annual legal requirements, hiring experienced professionals can help make expanding your business easier. They will take charge of the following:
- Updating your business locations and contact details
- Filing all the requisite documents your business will need before their due date
- Ensuring you maintain good standing with the state(s) in which you operate.
Another benefit you can gain from using a registered business agent is that your personal information won’t be on public record. You can rest easy knowing that a credible registered business agent will handle everything professionally and accurately. This eliminates the risk of paying hefty penalties or suspensions all because you submitted delayed and erroneous requirements.
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