Per state rules, all LLCs, partnerships, and corporations must elect a registered agent for their business. This registered agent is a point of contact between the company and the state. They thus receive and handle official correspondence, including tax notices, compliance documents, and service of process. But do you need such an agent if you run your business online? The answer is yes! Once you form a legal entity that requires a registered agent, you must elect one to represent your business. Please note that this law applies to all businesses, regardless of whether they operate online or offline.
What Does a Registered Agent Do?
As long as your business is in operation, it will receive different official correspondence. These documents come in the form of the following:
- Tax Notices: Your business should comply with federal and state tax laws. The state will occasionally send reminders and updates of any tax changes. Heeding the terms of the documents is crucial as it helps you remain compliant.
- Compliance Reminders: You will occasionally need to update the state of your business. In some states, you do so by filing an annual report once a year. The state reminds you of your upcoming deadlines to help you avoid penalties and fines,
- Service of Process: If your business gets sued, the court will alert you by ensuring you get served with papers. Receiving this paperwork on time allows you to formulate a rebuttal and avoid paying hefty penalties.
A registered agent is a person or company who receives these documents on behalf of the business. If you hire the right registered agent, you can avoid paying penalties owing to late responses. And you can also maintain your company by keeping it compliant. Please note that late or missed annual or biannual reports can result in automatic dissolution.
Who Can Serve as a Registered Agent?
Most states require that a registered agent meet the following requirements:
- They must be at least 18 years old. If the agent is a company, it should have incorporation in the state your business operates,
- They should be available during regular business hours to receive official correspondence,
- They should have a physical address in the state your business operates, and
- They should be residents of the state your business operates.
Based on these criteria, even you can stand in as a registered agent for your business. Alternatively, you can hire a registered agent service.
Benefits of Registered Agent Services for Online Businesses
Online businesses exist in the virtual world. As a result, many online business owners operate their businesses from their homes. Having a registered agent service represent your business comes with the following perks:
Privacy
The law requires that you list your registered agent’s address in your business formation paperwork. If you operate your business from home, this is not ideal. Hiring a registered agent ensures you will not need to include your address in the public records. Instead, the agent will list theirs, and they can receive your mail on your behalf.
Availability
A registered agent must be available during office hours at the address listed on the paperwork. This requirement contrasts with one key benefit of online businesses – flexibility. Sometimes, you work from home; at others, you work from a café, and at others, you work while on holiday! Hiring a registered agent service allows you to maintain this flexibility without losing your mail.
At Passportology, we upload all your mail to your online dashboard, allowing you to access it 24/7. Switch to our services for free!