| By Karen Lange, The Company Corporation®
Business owners choose to incorporate or form a Limited Liability Company (LLC) to help protect personal assets from business liabilities and to provide tax-deductible benefits for employees and owners. Both of these useful structures for small businesses and entrepreneurs are formed via an official state filing. As a state-recognized business entity, there are several legal and tax documents that your company will receive each year from the state.
Most jurisdictions require corporations and LLCs to designate and maintain a Registered Agent to receive and forward such documents on behalf of your company. The Registered Agent for your corporation or LLC must be located at a legal address (not a PO Box) within that state, hence they are sometimes referred to as "Resident" Agent. Your company's Registered Agent is required to be available at all times during normal business hours to receive documents and tax notices from the state and service of process from any legal proceedings.
Failure to maintain a Registered Agent can result in loss of corporate or LLC status. Equally important—if a responsible party is not available to receive service of process at all times, then your company could be unaware of a legal claim and a judgment may be entered against you.
It is not a good idea for businesses to serve as their own Registered Agent. Rather, the safest route is to select a reliable third party such as a service company. Using a service company as Registered Agent provides peace-of-mind for busy business owners:
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It gives you the freedom to let business (and vacation!) take you out of the office.
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It provides a layer of privacy, protecting you from being served with a legal proceeding in front of customers, clients, vendors or neighbors.
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It allows you freedom to change locations as your company grows, without filing costly changes of address with the state each time.
The Registered Agent serves a critical purpose and is an important part of protecting your corporate status and your company's future. It is important that small businesses select a highly reliable company to serve as their Registered Agent. Incorporation and LLC service companies often provide Registered Agent service as part of their formation package. Look for a company that maintains a nationwide network of offices and serves as a full time Registered Agent in all 50 states plus District of Columbia, so that they can service your company's needs as you grow.
A good Registered Agent has long-standing relationships with Secretaries of State. They should forward to you, via traceable overnight courier, all service of process the same day it arrives, summarizing the vital information, including who is bringing suit, in what court, when process was served, the nature of the case and how much time you have to respond. Plus, they should receive and promptly forward official state documents such as franchise tax notices and annual reports. Visit www.aboutregisteredagent.com for more information on the ins and outs of Registered Agent service.
The Company Corporation® can assist you in forming or qualifying your company in any state you choose and can assist you in keeping track of your state qualifications via our exclusive Compliance WatchSM Service. With over 100 years of experience, The Company Corporation® and its affiliated companies provide expert incorporation services to small businesses and entrepreneurs nationwide. In addition to filing corporations and limited liability companies in all 50 states and the District of Columbia, The Company Corporation® offers a wide range of products and services to help businesses preserve and protect their corporate status. We provide registered agent services, Tax-on-Time® and mail forwarding services, corporate kits, publications, certificates of good standing and qualifications to do business in any state. Our commitment to the success of small businesses does not end there. For more information on small business incorporation and business services, contact 1-800/472-2709, email info@corporate.com or visit our Web site at www.incorporate.com/score.
Copyright 2002, 2003 The Company Corporation®. All rights reserved. |
