What is a Registered Agent?
Question: What is a Registered Agent, and do I need one?
Answer: A Registered Agent (RA) is also called the agent of process. It simply means the entity, be it natural person or business, is your business’ physical representation in the state where you are conducting business or incorporated. It is a requirement of all States that an incorporated entity or entity transacting business have physical representation within their borders; a PO Box does not qualify as physical presence. Commercial Registered agents charge a service fee for the use of their physical representation.
State statues give the RA or Agent of Process two very specific jobs; the first is to provide a physical address (not a PO Box) and to be available to receive legal notices, lawsuits, summons or subpoenas on behalf of those for whom they have accepted the appointment of Registered Agent. It is then their responsibility to forward these notices on to you. These are the only services provided by a Registered Agent that are regulated by State statues (i.e. Laws).
Hiring a Commercial Registered agent is not a State statue; it may be a smart decision on behalf of your business. Most Commercial Registered agents have strict guidelines that they follow when receiving, forwarding and tracking legal notices on your business’ behalf. You would not want to lose in court because you knew nothing about being sued. Also, there is at times some privacy issues involved with having legal notices serviced to you at your personal residence or in front of employees or clients.
When you hire a Commercial Registered agent you should expect to pay a fee to them annually. As long as a Commercial Registered agent’s name and physical address appears as your legal representation with a State, they are providing a service to your business and should be paid the requested compensation. If you fail to pay a Commercial Registered agent they may notify the State through a resignation that they are no longer representing your business, and once the State approves the resignation, your business is no longer compliant with the States statues and would allow a judge to set aside your incorporated entity in any legal action. There are a couple of Commercial Registered agents that will report negative non-payment on both your personal credit and business credit. If you are unable to pay the Commercial Registered Agent’s set fees or are unsatisfied with the service being provided, you should find a more cost effective RA or one that satisfies your needs and appoint them as your new Commercial Registered Agent as quickly as possible. If you have closed the business, file a formal Dissolution or Withdraw with the State so that the Commercial Registered Agent is no longer held to its responsibilities under State statues. Although the State employees will advise you that the dissolution or withdraw is unnecessary, the Commercial Registered Agents can continue billing your business for services, since State status still hold them responsible for your business entity.
Some Commercial Registered Agents offer additional services to business. One that is commonly included in your annual RA service fee is receiving and forwarding first class mail on behalf of your business. This usually covers notices from a State Agency (i.e. Secretary of State) or Federal Agency (i.e. IRS). Sometimes you may pay additional fees for extended mail forwarding, phone numbers, office use, consulting services. Check with the Registered Agent on other available services.
Tags: Business, Corporations, Limited Liability Company, Nevada Registered Agent, Registered Agent
