How to Understand a Registered Agent's Legal Responsibilities
Many businesses choose to use a registered agent to receive service of process, rather than relying on a person within the company. A registered agent will also be better able than an in-house employee to keep abreast of changes in corporate related legislation and to notify the company accordingly.
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Instructions
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Ask Yourself Whether You Need a Registered Agent
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Understand that most states require corporations to maintain a registered agent within that state.
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The main legal responsibility of a registered agent is to simply be available during designated times to receive legal documents and documents from the government.
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Allow your registered agent to receive most, if not all, of your corporation's tax and legal documents. This means that these annual documents are being directed to professionals who will know how to route them and who can alert you to new legislation that may affect your company.
Understand the Responsibilities of a Registered Agent
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Know that the main purpose of a registered agent is to receive subpoenas served on your business. Many companies operate in a number of states without being headquartered there, and the state in which you do business wants to make sure you can be served with service of process if need be.
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Feel confident that you are receiving important documents on time when you employ a registered agent. It is their legal duty to forward on to you any such documents they receive on your behalf. This can prevent your having to pay fines for filing important tax or other documents late.
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Understand that the agent's legal responsibilities will take a certain amount of worry from your shoulders, allowing you to focus on building your company.
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Tips & Warnings
You can find a list of agents in your state at the Registered Agent Listings Web site (see Resources, below).
A typical agent's rates are usually quite affordable.
One of the perks of having a registered agent is that she can route documents to you in a timely manner. Important papers will normally be forwarded to you within hours.
Visit the Business.gov Web site (see Resources, below) to learn more about legal requirements for U.S. businesses.
Don't try to save money by having an in-house employee take care of an agent's legal responsibilities. You may end up paying more in the long run if you misfile a necessary document.
If you are in a state that requires you to have a registered agent, you can be penalized for not retaining one.
