Among the requirements the Tennessee Secretary of State has for doing business in Tennessee is appointing a registered agent. If you're unfamiliar with this concept, we at Hispanos Emprendedores will define what a registered agent is and why your business needs one.
There are places where they are also known as agents for service. It will be one of the many concepts with which you will have to become familiar when you are going to undertake in the United States. Appointing a registered agent will allow you to avoid penalties; But, in addition, it represents an advantage because it gives you more privacy as a business owner. You will keep personal mail separate from that of the company and you will concentrate on managing the business while the agent is in charge of managing the legal documentation.
What is a registered agent?
The registered agent is a figure that serves as a link between the company and the state. Its function is to receive and manage official business documents. These include renewal reminders, annual reports and legal notices among others.
The state of Tennessee requires that all businesses operating in its territory have a registered agent. Even if it is a business that is active in another state, you must have one with a physical address in Tennessee and that is available every day during business hours.
From the moment the company is registered, the registered agent must be appointed. This may be the owner of the company, a member of the organization or an external service. This last alternative is the most recommended since it gives more freedom and privacy to people related to the business.
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If a company does not name an agent, it is exposed to sanctions by the state. You can even have your legal status revoked. Therefore it is important to choose a registered agent service from the start.
The only state where you don't need to have a registered agent is New York. While in Connecticut the same state can function as a service agent.
Advantages of hiring a registered agent service
While the business owner may take this role, this does have some drawbacks. For example, you will be required to stay at the address you have registered during business hours. Thus taking away flexibility to manage your time.
There's also the issue of privacy. The registered agent's address is publicly available. Assuming you run a home-based business , anyone can access your address. Another drawback is that official documents, including legal notices, are delivered in front of clients.
This will not happen if you hire a registered agent service . Other advantages of choosing this option are:
- You can work at a time that suits you. You do not have the need to stay at the address you have given during office hours.
- You will have greater privacy, for example in the case of the delivery address of the documents.
- Possibility of expanding the company to other states, by hiring an agent where you want to operate.
- You will have someone to manage and store all the legal documentation of the business.
- You will receive notifications and reminders about business related issues on time.
Once you name the agent for your company there is the possibility of changing it. To do this, you must notify the Secretary of State and pay a fee that is usually low.
How to choose a registered agent
Before choosing a service, it's important to compare registered agents to select the most suitable one. Here are some considerations to keep in mind when making your choice:
- Evaluate the services it offers. In general, they not only receive the documents and send it to the company, but they also have additional services.
- If you have plans to expand your business to other states, you should also offer Tennessee services.
- It should allow you to access documents when you need it over the Internet.
- Make sure it offers quality consumer service. It is important that they are available anytime you wish to make an inquiry.
- It is also important that I send you reminders about annual reports and other deadlines related to your business.
As you'll soon discover, no two registered agent services are alike. Take the time to compare and analyze your options. You can find registered agents in Tennessee online and evaluate their services and costs. Seek business advice and ask other entrepreneurs like yourself for additional perspectives.
If you are ready to undertake, then you should consider choosing the agent as soon as possible. It must be a person who is always available to receive communications and, in addition, must have all the contact details of the company.
You already know what a registered agent is and why it is important to have one for your company. If you have more questions about your venture, we invite you to read our articles on the subject.
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