The Advantages of Using a California Registered Agent

Copyright: TRUiC

The California Secretary of State dictates that, “Corporations, limited liability companies, limited partnerships, and limited liability partnerships are required by statute to designate an agent for service of process.” An agent for service of process is also known as a registered agent. This is the business or individual who acts as the point of contact between the state and the company. They are responsible for receiving important documentation on behalf of the business such as service of process notices and tax documentation. 

The registered agent is required to have an address within the state of California that is not a PO Box address. Additionally, the registered agent must be over the age of 18 if they are an individual. A registered agent can be an employee or owner of a company but the company itself cannot serve as its own registered agent. The registered agent is expected to be available every business day of the year to receive documents on behalf of the company that they represent. This is a particularly onerous task and one of the reasons why many companies prefer to use a registered agent in California.  

Benefits of a Registered Agent Service 

Privacy 

The address of the registered agent of a business will become public record. This is particularly undesirable for businesses which have a private office or businesses which operate out of a home. The fact that the address is a matter of public record will also lead to the likelihood of receiving a great deal of spam mail. A registered agent service will use their own address and remove this unwanted invasion of privacy from a business and a business owner. 

Discretion 

When a business is sued, which is a common occurrence, a law enforcement officer will likely be the one who delivers the service of process notice. This can be most undesirable for a business owner as they would not want their private affairs to be made so explicitly public. Additionally, businesses which operate with customers on their premises would not want their customers to know about their pending legal action. 

Focus on Growth 

A professional registered agent service will inform a business of any requirements needed to keep a business in good standing with the state. Additionally, they will remind a business about compliance documents which they are required to submit such as an annual report. This frees up time for a business owner to focus on growing their business as they will not need to worry about constantly checking their calendar to ensure that they are complying with all the relevant regulations. 

Convenience 

As was previously mentioned, a registered agent is expected to be present at their stated address every business day of the year. This means that business owners who spend time out of their office for business purposes will be hamstrung by the nature of their work. Additionally, business owners who wish to take some well deserved time off will not be able to as they are required to be present in case of the receipt of documentation. A registered agent service can take care of this obligation for a business owner so that they need not worry about it. 

National Support 

Many business owners may want to grow their business into other states. As a registered agent is required to have an address in the state in which the business is registered this may prove difficult for a business owner. A registered agent service can take care of this obligation for a business as many of these services maintain offices in every state. 

Final Thoughts 

A registered agent service provides a wealth of advantages for a business and for a business owner or owners. These advantages come with only the small downside of needing to pay an annual fee for the service. Some formation services also include a free year of registered agent service as part of their formation fee. The fees for a registered agent service tend to range from $39 to as much as $150. The level of service which a registered agent service provides may be affected by their pricing but, on the whole, many services provide the same level of care and service irrespective of their cost.