Among the requirements that the Secretary of State requires to do business in Tennessee is to appoint a registered agent. If you do not know this concept, in Hispanic Entrepreneurs let's define what is a registered agent and why your company needs to have 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.
READ OUR MAGAZINE HERE
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 is also the issue of privacy. The address of the registered agent is available to the public. Assuming you have a home business, anyone can access your address. Another drawback is that the delivery of official documents, including legal notices, is done in front of clients.
This will not happen if you hire a registered agent service. Other advantages of opting for 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 deciding on a service it is important compare registered agents to choose the most convenient. These are some considerations that you should take into account when choosing it:
- 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 will notice, no registered agent service is the same as another. Spend enough time comparing and analyzing what your options are. You can find registered agents in Tennessee Through the Internet, evaluate the services and costs of each one. Seek business advice and ask other entrepreneurs like you to have other references.
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.
Related Notes:
