Advantages of Having a Third-Party Registered Agent For Your Business

Written by Jeff Lancaster
February 21, 2011

advantages of registered agentsMost states, including California, require business entities such as corporations or limited liability companies (LLC) to have registered agents.  Registered agents are third-party individuals or businesses who are registered in the same state your business entity was established.

These third-parties are designated to receive service of process notices and other government notifications such as tax forms and notice of lawsuits on your behalf.  They must also register with the State of California so it knows there is a contact person for your business within the state at all times.

Note: P.O. Boxes ARE NOT an acceptable address for your registered agent.

So now that you know that you must have a registered agent for your corporation or LLC, let’s go over some reasons why you’d want to have one anyway.

Advantages of Having A Registered Agent

The main advantage of having a registered agent is to ensure that you do not miss any important information regarding tax payments, lawsuits or other judgments involving your business, but there are others, including:

  • Your registered agents name and address are public record and is listed in all official public documents in place of your business address
  • Having a third-party registered agent allows you to travel without risking default judgments against your business due to missed lawsuits
  • Having a third-party registered-agent allows you to change your business location at any time without being required to file costly changes of address with the State of California each time your business moves
  • Third-party registered agents typically track all filing, notification and publishing requirements of your business, saving you money on labor, software and late penalties
  • Third-party registered agents typically have all the necessary forms and documents required for keeping your business in good standing, and provide real-time notice of any litigation directly to you
  • Having a third-party registered agent buffers your business from rumors that arise among employees when service of process is delivered directly to your business

Even though it’s legally required for you to have a registered agent for your corporation or LLC, you can see it’s to your advantage to have one anyway.  Don’t risk falling out of good standing with the State of California.  If you do, penalties may include revocation of your license, fines and an inability to enter into legal contracts or even gain access to the state court systems, and reinstatement proceedings can cost you additional monetary, civil and even criminal penalties.

Don’t gamble with your business.  If you have any questions about third-part registered agents or want to retain a registered agent for your corporation or LLC, please give us a call at (866) 754-0520.

ABOUT THE AUTHOR

Jeff Lancaster

Jeff Lancaster

JPL Process Service is a trusted process service partner to 100's of law firms throughout Southern California. Call us at (866) 754-0520 to see why or click to order online here.

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