Regardless of how large your business has grown, or if you’re just starting out, everyone needs a few talented human resources. A bookkeeper, someone familiar with taxes in your state, and a registered agent.
A registered agent is an individual (or a company) that’s your official point of contact with the state to receive service of process, legal and state documents, and transmit these communications to your business.
They’re tax experts and accept tax and legal documents on behalf of your business, making sure you don’t miss important information regarding tax payments, lawsuits, or judgments.
For those small businesses interested in protecting their assets with an LLC, you’ll need a registered agent to make that happen. All states require the LLC or corporation to identify a registered agent and registered office before filing articles of organization with the state filing authority. Additionally, a Limited Liability Company or a Corporation must always have a registered agent in each state in which it is conducting business.
For those who aren’t financially ready to commit to a real human bookkeeper and registered agent, choosing instead to use software and do as much as they can themselves. Yes, it is legally possible that you serve as your own registered agent and save a bit of money, but you need to be aware of some common issues that come with doing it yourself:
Having a registered agent by your side is a huge asset to every small business. They provide critical professionalism, privacy, and a safety net by catching small mistakes before they become larger mistakes. Researching the costs of retaining a registered agent should be an entrepreneur’s first step on their small business journey.
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