People who brave the business industry are something else. They have the guts and gumption to go out there and make their dreams come true. Many do this because they want financial independence and security. Countless others do it to pursue their passion or to create change.
There are many things to consider when you have your own business. You might need to sell shares to generate funds. Many companies also discover that they need a registered agent.
What is a Registered Agent?
Many companies need the services of a registered agent. This can be an individual or company. They’re authorized to accept service of process, like legal documents and government notices. Here are some documents a registered agent will receive for your company.
- Official correspondence from federal and state agencies
- Notifications from corporate filings
- Subpoenas/ lawsuits
- Summons to appear in court
- Tax notices from either the IRS or the local authorities
- Wage garnishment notices. This is when a company withholds a part of the employee’s salary. They’ll send the amount to the person or organization to whom the worker owes money.
A registered agent acts as a corporation or LLC’s official contact point in the state. They’ll forward any communications and documents to their client.
People often interchange the terms registered agent and stock transfer agent. Both act as intermediaries for the company. The latter is more known as someone who issues and cancels stock certificates. They also record data of every individual who owns securities in the company. That also falls under the purview of a registered agent. Plus, most companies prefer to work with a company that offers both services. It’s easier, more convenient, and affordable.
How to Choose a Reliable Registered Agent
A registered agent is always needed when you start a business or nonprofit. You also need one to ensure compliance with many state licenses.
Most states allow people and businesses registered to provide transfer agent services. A friend or family member can also act as a registered agent if they meet the requirements. Law firms and accounting firms can also act as registered agents.
Being a registered agent is a critical and essential job. So you have to be careful when choosing one. Here are some factors you should keep in mind.
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Go with a Professional
A key rule of a registered agent is that they have an office that’s open from 8 AM to 5 PM. Their address is also registered in the company’s Articles of Incorporation. This rule is why many business owners pick an employee or family member to become their agent.
There are so many ways this scenario can go wrong. Your chosen registered agent could be on vacation when there’s a notice delivered. You will still be liable for this document even if you didn’t receive it on time. A professional registered agent will have contingencies in place. They’ll ensure they’re always available to receive and handle sensitive documents. They also know they have to forward these fast as it could need a response.
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Choose One with an Extensive Reach
Registered agents are only licensed to work in specific states. So your transfer agent in California might not be eligible to represent you in Ohio. This can be problematic if you’re expanding your business to other states.
Your best option is to select a registered transfer agent firm registered nationwide. These transfer agents can work in every state. They can support your business as it expands. They can also account for all your documents. It also means a more efficient and effective system. You’ll also save money since you’re not paying different batches of agents.
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Pick a Tech Savvy One
It would be best if you had a registered agent service provider that uses reliable software. This ensures documents are always sent on time. They’re also sent to you in an accessible format. The best-registered agents use state-of-the-art manager software that can interface with state databases. This also allows them to access the documents your company needs. They can share notices fast. They can also manage business filings, like annual reports, with no issues.
One Last Thing
Legacy Stock Transfer helps make running a business easier. Our company is one of the country’s premier stock transfer agent services. We’ve been in the business for decades. We have a well-honed procedure for automating tasks. We can also help improve shareholder relationships and streamline company processes. We do this by providing top-notch stock service solutions. Give us a call at 972-612-4120 or send us a message at info@legacystocktransfer.com.