How And Why Do You Need A Registered Agent

General CPA

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Registered Agent – an outside or 3rd party, located within the same state the company was formed in, entrusted with receiving services on the company’s behalf.

You may or may not be familiar with registered agents, but you may have been advised to hire one. Corporations and limited liability companies are required by law to have registered agents for a number of reasons. Having a solid understanding of a registered agent’s role can help you use them effectively and smartly.

Let’s understand what registered agents are and why you need them in a little more detail.

Who are registered agents?

A registered agent is a person who is responsible for receiving service of process and official mail on behalf of your business such as legal matters and government-related documents.

Registered agents can be individuals or businesses.

State requirements may vary, though, so be sure to research your state’s laws before deciding whether to seek assistance from a company or an individual.

Why do you need a registered agent for your business?

In every state, it is mandatory for businesses incorporated within its borders to have a registered agent. Having an official contact is really what this requirement is all about.

It is mandatory to have a registered agent in the state where you do business, have a physical presence, or paid taxes.

Moreover, finding a registered agent with a physical presence in more than one state can be beneficial when you intend to do business in more than one state. You can ensure your privacy by retaining a registered agent.

Even if you file all your tax returns on time, that doesn’t matter. You are responsible for maintaining contact with the registered agent, whose job it is to act on your behalf with legal notifications. An actual address of the individual must be provided to the state since a P.O. Box address cannot serve as a registered agent address.

Registered agents are in charge of receiving documents from official bodies on your behalf and sending them on to you. Documents they receive include:

  1. Payment requests and tax forms.
  2. Letters, correspondence, and official documents from the Secretary of State, corporate division, or another state agency that deals with LLCs and corporations.
  3. Correspondence, announcements, and information from the federal government.
  4. Filings, permits, or reports requested.

For instance, if a customer gets injured on the premises of your business or by one of your employees, following which he or she decides to sue, the summons to appear in court will be sent to your registered agent.

The problem would be that if you did not receive notification of the lawsuit, no one would appear to represent you if it went to court, leading to a default outcome for the customer.

How does having a registered agent benefits you?

In every state, it is mandatory for businesses incorporated within its borders to have a registered agent. Having an official contact is really what this requirement is all about.

Since the registered agent’s address is the same wherever you do business, your business location can be changed without needing to file any additional paperwork with the state every time you move to a new location.

Some other benefits are as follows:

  1. Privacy
  2. Security
  3. Peace of mind

Are you authorized to act as your registered agent?

Legally, you can act as your business’s registered agent, but it is highly recommended that you hire a trustworthy, 3rd-party representative to carry out this role.

Individuals and corporations who meet the requirements are eligible to become registered agents. Registered agents are sometimes hired by companies in their home state in order to ensure that they receive any legal notices served upon them.

Why do we recommend using a third party?

One of the biggest advantages of this is knowing that whether you are in your home city or abroad, a representative will be available to accept legal and tax documents on your behalf.

However, even if you expect to be based in the state the majority of the time, you may occasionally be out of the state and thus be unable to receive these documents. Through third-party services, these processes can be handled seamlessly so you won’t miss a deadline.

5 reasons exist why it may not be a good idea for you to be your own registered agent.

  1. The state requires a physical address – if you don’t reside in the state where your business is located physically, this will disqualify you for the role of registered agent. You will also need something other than a Post Office Box, personal mailbox and virtual office as registered agents are not allowed to use those addresses. The only downside to this is that it will complicate things and not benefit your business in any way.
  2. You will be required to keep normal business hours – in every state through which your company conducts business, registered agents are required to be on hand during regular office hours to receive crucial documents as soon as they arrive. For those who would prefer to set their own hours, or who do not wish to be confined to an office all day, it may be worthwhile to hire a third party to do this for them given that this is one of the requirements. Moreover, considering your business type, an LLC may make sense in the state in which your business is incorporated, especially if there is no one who works full time at the office.
  3. Each state where you wish to register your company abroad requires a registered agent – in the event that your business is registered in more than one location, a registered agent will be needed in each of those locations, unless the business has a physical presence there. You cannot be in two places at once, thus having multiple registered agents is necessary. As a result, you cannot act as your own registered agent.
  4. Your mobility will be limited – if you expect to switch addresses, it will add an extra step to your moving process that will make it harder and more expensive. No matter what, your address must always be up-to-date, according to state records. In the event that you decide to move, a state filing will be necessary, and there is usually a fee associated with it. Depending on your state, you may pay a different fee, so you should verify fees within the states where you do business. A third party will handle this for you, which will save you the trouble of having to keep changing your address voluntarily.
  5. Addresses will be public records – The address of the registered agent will be public information and can be accessed by anyone. You might not realize how serious this is until you begin to receive emails from junk mailers, advertising firms, and other unwanted sources. Consequently, you will receive lots of uninvited mail regarding your business, with no way to stop it. If you are looking for the privacy of your address, whether it is your personal address or your business address, the best option for you is to use a third-party service. By doing this you will enjoy an additional layer of privacy as well as prevent a lot of junk mail from being sent to you.

What can happen if your company does not have a registered agent?

If you do not assign or provide details of your organization’s registered agent to the secretary of the State, you could face significant problems, such as:

  • Legal issues – not knowing that you have been summoned to court, leading to a default judgment, and other legal issues.
  • Dissolving of business – failure on the part of the Secretary of State resulting in the dissolution of your business because of an untimely filing of official correspondence.
  • Loss of your legal business status – being disqualified from having a business license, since a registered agent provides state authorities with proof, proving the existence of the business.

What makes us unique among registered agents?

We offer a complete, easy-to-use registered agent service for any business incorporated in the state of Texas for only $100/year.

wait! there’s more than that.

One of the main benefits of using our services is that your documents are reviewed by a Certified Public Accountant (CPA).

One might wonder if it makes any difference.

Well, it does! As a certified public accountant (CPA) – we possess the tax expertise necessary for reviewing state and federal tax documents, so our clients are compliant.

  1. Best deal for $100/year in the state of Texas.
  2. A physical Texas business address you can use to protect your privacy.
  3. Reminders to file your Texas Franchise Tax Report.
  4. We will review your mail.
  5. A secure online account from which you can view, download, and store your documents.
  6. Our business filing service is quick and easy to use.
  7. You will have instant access to all important documents and services of process. Documents will be scanned and uploaded immediately into
  8. your online account.
  9. Scan it and upload it to a secure portal

Our office is located in Houston, Texas (TX).

Click here to get started.