Starting a new TECH business? What to know about registered agents and their duties
When starting a business, a registered agent can be an integral part of your company and how it runs. A registered agent can smooth out a lot of work that is vital to the company’s success. They can also take the burden off the company if the company decides to hire an outside party to do the work. There are a lot of places you’ll see references about hiring an agent or how important they are, but the question is what do they do? Once that question is answered, there may be many more questions that come next.
What do registered agents do?
The biggest part of a registered agents job is to communicate on a company’s behalf with the government, lawyers, and more. A registered agent needs to be very organized and excellent at keeping track of legal documentation. They also need to be available on a regular basis for the company since they will handle all communication that comes in. This usually means the agent will need to be at their physical address for regular work hours during the week. Essentially, all mail will be sent to them for the company and the agent will filter through and communicate with the business owner anything that needs to be addressed.
The very first thing you’ll need a registered agent for is the company’s formation documents. The agent you choose will help you put together all the documents you’ll need to start your company and then send them to the government when they are finished for approval. They will also reach out to you if there is any problem with the documents. If anything needs to be corrected or added to the documentation, it will be their responsibility to reach you.
Next, once the business has been opened, the registered agent will need to remain available to you for any other communications. Again, the agent will receive all mail for your company so it’ll be critical that they are available and at their physical address for regular work days. They may reach out for several reasons that need to be taken care of. If the company is sent any communication from the government, they are going to want to let you know as soon as possible. This way, whatever needs to be addressed can be and in a timely fashion. If for some reason someone is taking a lawsuit with the company, they will also reach out to address that with you as well. They also help with keeping documents safe and organized. If you need to send your tax documents or any government forms at the end of the year, your registered agent would be your go to for this. TRUiC is a website that has information relevant to start ups and registered agents. Check out their website to see https://howtostartanllc.com/what-is-a-registered-agent.
Does your company need one?
In most cases, companies will want to have a registered agent available to them. There are several benefits to having an agent that will come in handy for your company. First of all, having a designated person to handle important legal documents, mail, and government and legal notices is never a bad idea. If your company decides to hire an agent, it takes a good amount of burden off you as the business owner and/or your management team who would have had to do the work. If you decide to do the work internally, it’s still best to have a designated person for the job. There can never be too many hands in the pot if everything is done by one person. The designated person will be able to organize a system to keep everything in its place. Having an agent will help the business owners who usually have a lot of other things to think about, especially during opening, on a regular basis. It can be easy for a business owner to have too much on their plate during opening and misplace things or forget deadlines. Having a registered agent will help prioritize those types of things and notify the business owner when they have to be involved.