According to the 2017 Economic Report published by the National Association of Small Businesses, 86% of American startups prefer a formal business structure over a sole proprietorship or partnership.
LLCs and Corporations have legal advantages that protect their owners from creditors or legal liabilities. These business entities also offer several tax advantages, depending on whether the owners decide to use the default tax or create an S Corporation. Furthermore, of the two legal business structures, forming an LLC requires less paperwork than a corporation. Then again, a corporation can choose to retain profits to use a business growth or to pay these out as dividends.
Whatever type of business structure you decide is best for your startup, all U.S. states require you to use a registered agent’s service.
Registered Agent Service Benefits
Registered agents can provide a vast range of services. Still, their main objective is to help maintain compliance for your business by ensuring you receive all tax and legal correspondence on behalf of your enterprise.
You can become your own registered agent or appoint a friend, as long as you or they have an actual place in the state of business for the company to receive correspondence. However, most people prefer to appoint a business entity or individual providing registered agent services because they must be available during the regular business days and hours and between 9 a.m. to 5 p.m. on weekdays.
There are several advantages when hiring a registered agent service:
Compliance
The registered agent receives all state and federal correspondence, including your tax. That means that they will remind you of all your obligations since they ensure that the papers don’t get misplaced. By fulfilling all these requirements, you can ensure that your business remains compliant, avoiding any hefty fines or penalties.
Copyright: TRUiC
Peace of Mind
Since you don’t need to worry that essential documents or deadlines can be forgotten, stolen, or misplaced, a registered agent service provides peace of mind, enabling you to pump your attention and energy toward growing your business. Another bonus is that you never receive junk mail at your company.
Flexibility
Growing a business requires flexibility. A registered agent service frees you from the time restrictions of leaving your office or business, allowing you to perform your entrepreneurial duties as you negotiate prices, make deals, and grow your startup.
Privacy
When you form your LLC or corporation, you must provide the address of your registered agent for the public record. By listing the address of a registered agent service, you ensure that your home or office address remains private. You also never have to accept potentially embarrassing summonses or documents in front of your staff, customers, or family.
Choosing the Best Registered Agent
Starting a business is not difficult in the U.S., but having the correct information and resources at your fingertips makes it easier. TRUiC’s team of experts makes it simpler for aspiring and established entrepreneurs to find information about all business topics. They also have a guide for choosing the best registered agent services for your business needs.
Businesses have no shortage of options, but some of the best, according to the evaluations done by TRUiC, include Northwest, ZenBusiness, Incfile, Rocket Lawyer, and Legal Zoom. They consider pricing, features, user reviews, customer support, and the website’s ease of use when deciding on the best services to recommend.
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How to Decide on a Registered Agent?
It would help to consider your business type and needs when deciding on the best registered agent. Many registered agent services also provide an array of additional services that may serve your business well. These include LLC formation, notifications of your document status, mail forwarding, legal services, cloud storage of documents, etc.
Therefore, even though pricing is essential, you should choose a registered agent according to your business requirements.
Final Take
Thousands of Americans become entrepreneurs annually despite an almost 50% failure rate by the end of four years for small businesses. Moreover, business taxation and personal liability are two main reasons their owners prefer to form LLCs or corporations. However, these formal business entities require the services of a registered agent in all the states. As a result, new business owners opt to use professional registered agent services to ensure their business remains compliant while ensuring flexibility, privacy, and peace of mind.
