The inception of startup businesses in the U.S. is on the rise. In the latest report by the United States Small Business Administration, 32.5 million small businesses are registered in the US. What’s more, 99.9% of U.S. businesses are considered small businesses. Not every entrepreneur can afford to rent offices, so many tend to start their business operations from home. Whether your business is operating as a corporation or LLC, running a home-based business is quite possible. In fact, it can yield many benefits such as lower overhead costs and more tax breaks. However, if you plan to expand your business, you are going to need the help of registered agents.
Registered Agents
On your behalf, these professionals receive formal mail, process legal documents, and serve as the points of contact with the state. Their job description sounds easy enough, but effectively performing their tasks is a completely different story.
While anyone can act as their own business’s registered agent, most companies — including startups — choose to hire professionals. It helps to keep everything organized and gives business owners peace of mind.
Benefits That Registered Agents Offer
Here is how home-based businesses in particular can benefit from having registered agents:
An Added Layer of Privacy and Protection
When you appoint yourself as your business’s registered agent, your contact details and home address become public knowledge. However, hiring a registered agent puts its address and contact information on public records instead, giving you total privacy. The last thing you want is to receive a lawsuit or face an irate customer in the middle of a family gathering!
Hiring a registered agent ensures your personal matters and legal matters remain private. What’s more, your business gets a legitimate business address ― resulting in enhanced credibility.
Maintaining Good Standing with the State
As a home-based business owner, you may be unfamiliar with the long list of business requirements to be considered “compliant”. Processing all legal documents can take up a chunk of your time that could have been spent on innovating your business.
What’s more, government agencies take these documents very seriously. One mistake or failure to respond on time can result in avoidable penalties or worse, business closure.
Hiring a registered agent guarantees that your documents process correctly and submit on time. This ensures you stay compliant with the state’s requirements, and minimizes the risk of incurring legal expenses.
Ability to Focus on More Important Matters
Some small business owners consider it unnecessary to hire professional registered agents since they can learn the job themselves. What they do not realize is that this could potentially hurt their businesses in the end. Aside from limited funds, many startups fold due to such deficits as limited investments in employee training and failures to conduct thorough market research.
Hiring a registered agent gives you more time to focus on what you need to be doing: developing products and services; improving customer care; and marketing and growing your business.
Easier Opportunity to Grow Your Business
As you expand your business, it is quite possible that you will start branching out to other states. However, each state comes with different laws and regulations requiring compliance. Furthermore, most states require a registered agent with a physical location in their state for businesses registered as corporations or LLCs.
By the simple action of hiring registered agents, everything becomes more organized. You will never miss any important documents, and you will have legal support as your business grows.
Convenience When Changing Your Business Address
Another benefit of hiring a registered agent becomes apparent when you need to change your business address in the same state. You avoid paying any extra fees and save time on filing the paperwork. All you have to do is notify your registered agent about the change of business address, and they will take care of the rest.
Final Thoughts
Creating a successful business can be challenging. The lack of resources, knowledge of the industry, and fierce competition are just some obstacles every entrepreneur faces.
One of the first steps any entrepreneur should take in any business is to hire a professional registered agent. This professional can help streamline your business by making sure you are legally compliant with the state and improve your company’s reputation.
Finding the right registered agent can help you grow your business. Moreover, it ensures that you avoid the wrath of state authorities.
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