If you want your business to remain compliant in Washington, you must keep up with state and federal requirements. Most of these revolve around your tax payments, while others cater to your annual report. And while keeping up with these tasks may seem like just another thing to do, not doing so can have severe consequences. That’s why having a registered agent, per state law, is integral to the continuity of your business. We look at what a registered agent does and why you must have one:
What is a Registered Agent?
As you form your LLC, you will come across a section that requires you to elect a registered agent. But who is this? A registered agent is a person or company on your public records that receive official correspondence on behalf of your business. According to Washington state laws, this person or company can be you, or you can delegate the role to any other qualified entity.
What Does a Registered Agent Do?
An agent’s role is to receive and forward official correspondence that can refer to various documents. However, the primary documents received by a registered agent are as follows:
- Tax Notices: Depending on your tax election, you may need to file state and federal taxes. Or you may qualify for other tax statuses if you file your taxes as a corporation, single-member LLC, etc. In all these cases, the authorities will notify you of upcoming payments by sending you mail. And the agent should receive and address this mail to you, allowing you to act on time and avoid falling behind.
- Compliance Documents: You must update your business records with the state by filing an annual report. The state notifies you of upcoming dates as the periods are not standard for everyone. In Washington, filing takes place at the end of the month you formed your LLC. So, given this lack of uniformity, it’s easy to forget that you have a report due. The agent’s role is to receive these updates and keep you abreast of the deadlines.
- Service of Process: Court summons and other legal documents will also be forwarded to your public address. And if you do not receive these on time, you can lose a lawsuit without even having the chance to defend yourself. An agent serves the role of ensuring your business does not suffer losses resulting from such mishaps.
Working with a professional agent ensures smooth document receipt and forwarding.
Must I Hire a Registered Agent?
Per Washington state laws, you must elect a registered agent when filing your business formation. Also, you must maintain this agent for the duration of your business.
So, what happens when you do not have a registered agent?
- You cannot form an LLC without electing a registered agent. Thus, your paperwork would not go through, and you would have to repeat the formation process at an additional cost,
- You can miss important dates, e.g., when you are due to file your report. In Washington, not filing your report on time can result in two consequences. The first is a penalty of $25. And the second and most dire consequence is the automatic dissolution of your company. Dissolution occurs when you miss one or more report filings, resulting in the loss of your corporate veil.
The easiest way to avoid such legal and financial problems is to hire a reputable registered agent. Passportology offers registered agent services in Washington, enabling you to get all your paperwork in a centralized dashboard. And you can access the data 24/7!