All in all, registered agents provide valuable services managing official government and legal communications. Be sure to appoint or hire a registered agent as soon as possible, especially if you're planning on forming an LLC or any other type of structured business. Failure to have one can result in fines and disqualification from business activities.
Georgia LLCs and other companies need multiple things to get started, including Articles of Organization, business plans, and more. But one thing that some new businesses forget to consider is a registered agent. A registered agent handles all official government and legal correspondents for your business.
Let's break down what a registered agent is and the value they can provide to your company.
When an LLC or another business entity is established, they need a registered agent. A registered agent lives (or at least has a physical address) in the same state in which the business entity is being created.
A registered agent is an official officer who is the designated point of contact for the company for any legal documents, official government correspondence, tax forms, and more.
As the above description suggests, registered agents handle all of the ongoing official and legal communications between a company, such as an LLC, and official government agencies, organizations, and legal groups.
To ensure that these duties are fulfilled, registered agents must be in the state in which the business is conducted so they can accept those documents and forward them or communicate to executives in a timely manner. In many cases, registered agents reside in the same city as a business’s headquarters.
A registered agent can accept any legal or tax documents on behalf of a business, as well.
Furthermore, registered agents may provide ancillary services, including:
Every newly formed major company, such as an LLC or corporation, needs registered agents to act as their points of contact for official government agencies and legal groups or offices. But beyond these official requirements, registered agents provide a number of benefits to companies that employ them:
More importantly, businesses that don't have registered agents may end up falling out of good standing with their state of operation. Some states require you to have a registered agent at all times – if you fail to maintain this requirement, you may lose your LLC status or be barred from continuing to operate until you correct the error. Additional fines may include fees or the inability to enter into legal contracts with other businesses.
Of course, while hiring a registered agent is important, you need a good registered agent overall, not just anyone who can technically do the job. That's why it's important to choose your registered agent carefully.
Fortunately, the requirements to be a legitimately registered agent are relatively simple:
Thus, any qualified individual who lives in the same state as your business and who is an adult can technically be a registered agent.
You can always assign yourself as your company’s registered agent. All you have to do is live in the same state as your business, which means your permanent physical address must be in that state as well.
As previously noted, this can lead to considerable stress and further responsibilities, potentially leading to a sense of being overwhelmed. This path is only recommended for single-member LLCs or smaller companies that may not have the cash to hire a third-party registered agent.
This being said, there are some key qualities you should look for in any worthwhile registered agent. A great registered agent should be:
Because of these qualities, many businesses use third-party registered agent services, which can provide registered agents for businesses in certain states. This is particularly useful for smaller companies that may otherwise have to assign a friend or company executive to the role, which adds to their existing duties and can make things stressful.
Third-party registered agent services can provide registered agents that are flexible enough to fit your company's schedule, are experienced enough to provide all major duties, and are professionals through and through.
As discussed above, most states require you to have a registered agent to handle any legal or official government correspondence or transactions. If you fail to have a registered agent:
In conclusion, registered agents play a pivotal role in managing official government and legal communications for businesses, particularly when forming an LLC or other structured entities. Their significance lies not only in fulfilling legal requirements but also in safeguarding operational integrity and preventing potential penalties. It's imperative to appoint a registered agent promptly to ensure compliance, protection, and smooth business operations.
If you have additional questions fill out the contact form below or call +1 (307) 683-0983 to discuss your options with a member of our Business Success Advisor team. Ready to initiate your business formation in Georgia? Take the next step by clicking the button below.