Do I Need a Registered Agent for My Startup Company?

Woman looking at paperwork.

When you legally register your startup company as a business, whether you’re registering as a limited liability company (LLC) or a corporation, you’re required to name a registered agent that’ll receive all legal communications and documents on behalf of your business. 

More often than not, small business owners use the name of their owner or even an employee as their registered agent. This can be a viable solution for small business owners, but for startups, using an official registered agent service is a much better choice. 

We’re going to discuss registered agents for startup companies in detail, explore why registered agents are necessary, and walk you through some of the benefits of obtaining a registered agent for your business.

The Importance of Having a Registered Agent for a Startup Business

When you form a legal business entity such as an LLC or corporation, you’ll typically be required to provide information for a registered agent on behalf of the business. For general partnerships and sole proprietors, a registered agent isn’t required. 

In the following sections, we’re going to discuss what registered agents are and some of the common benefits of obtaining a registered agent for your startup.

What Is a Registered Agent?

In short, a registered agent is an individual who will receive documents and other legal communications on behalf of your business. This may include correspondence such as tax notices, regulatory documents, or even subpoenas. 

In many states, the registered agent of a business is the one who will be served lawsuits, especially if the state requires the lawsuit to be served in person.

Is a Registered Agent Necessary?

Yes, a registered agent is necessary for your startup if your business is set up as a formal legal entity such as an LLC or corporation. In order to set up this business structure, your startup will be required to name a registered agent in the business formation paperwork. 

What Does a Registered Agent Do?

Using a registered agent for your startup company can have several benefits, compared to naming yourself and handling all business correspondence on your own. 

Allows You to Focus on Building Your Business

Instead of dealing with paperwork, documents, and correspondences that your business may receive, having a registered agent allows you to focus exclusively on the most important parts of your business without any distractions. It can be time-consuming and tedious to deal with compliance requirements and lengthy confusing forms and paperwork. A registered agent eliminates all of this and lets you work on your company in peace. 

Privately Receiving Legal Documents And Lawsuits

When a business is served a lawsuit, it is often delivered by local law enforcement officers. Imagine if this happens to your startup while you and your employees are working in your primary office. This can cause a severe disruption to your day and have employees questioning what is going on inside the company. By having a registered agent, you can receive all legal communications including lawsuits (if you’re ever served one) in private. 

Gives You the Flexibility to Travel

If your startup requires you or your employees to frequently travel, having a registered agent will eliminate the requirement for you to always be at your primary business address during working hours. Whenever any important documents are sent to your startup, you’ll be able to rest easy knowing they’ll always be delivered and handled by your registered agent. 

Why You Should Hire a Registered Agent Service

Instead of naming yourself, your friends, or even your family members as your registered agent, choosing to use a professional registered agent service is a much better idea. While it does require some extra money, the benefits pay off considerably over time. 

Hiring a registered agent service gives you privacy. As mentioned previously, having a legal action served to you at your doorstep isn’t always the best look for your clients, customers, and employees. 

It also ensures consistency in your paperwork, documents, and any business details and information that may need to be updated. Using a registered agent service will ensure all of your business documents and information are properly updated and in line with state regulations to keep your company in good standing. 

Furthermore, if your startup does business in multiple states, having a professional registered agent service will allow you to use that service across multiple states, instead of having many registered agents scattered around various locations. 

Best Registered Agent Service: Northwest

If you’re looking for a solid and reliable registered agent service, Northwest has been touted as one of the most secure and reliable registered agent services providers online. To ensure your startup complies with all documentation and legal requirements and is protected from receiving any legal notices or tax notices directly at your place of business, consider signing up for Northwest Registered Agent today.