Every corporation or LLC must have a registered agent in its state of formation and in each state where it is registered to do business as a foreign corporation or LLC.
A registered agent receives service of process (SOP), official state government correspondence, and judicial documents on behalf of your corporation or LLC, and forwards those documents to your company quickly and efficiently. The larger the scale of your business, the more likely you are to receive a high volume of these documents. These documents usually need to be handled in a short time frame before they start costing you time and money.
As businesses grow, many will appoint different registered agents as they expand into new states. You may use an attorney in your home state, appoint an employee in a satellite office across state lines, and then appoint a professional registered agent company in another state where your business has no physical presence. Relatively few professional registered agents operate in all 50 states, so you may even appoint different professional registered agents in different states.
This practice causes more issues in the long run. Here are eight reasons why it makes sense to use the same professional registered agent for the multi-state needs of your business.
1. Single point of contact
Using the same registered agent provides a single point of contact who knows your business and can provide you with correct, consistent information about your compliance responsibilities in each state. Of course, for this to work in your favor, you have to select a registered agent that has extensive compliance experience and makes its knowledge available to its customers. For instance, CT Corporation has a team of subject matter experts that monitors upcoming state legislation and lets you know about changes to the law or administrative policies that can affect your company.
2. Consistency in process
Having one registered agent ensures consistency in the handling of legal documents and communications, reducing the risk of misunderstandings or errors that may arise when dealing with multiple agents.
3. Simplified billing
Your single point of contact should be able to simplify your billing, for instance, by creating a single renewal date for all services. This cuts down on your internal costs: fewer purchase orders you have to fill out, checks you have to cut, and reimbursements you have to submit. Some registered agents, like CT Corporation, can simplify your life even further by offering bundled services that let you consolidate your annual reports and corporate document filings onto a single annual flat fee.
4. Tools and options to fit your workflow
Having dedicated tools to manage your entity compliance helps reduce risk and save time. Do you want to go paperless for all your SOP? Do you want customized delivery options, like sending all garnishments directly to the payroll department? How about a single website to monitor the compliance status of all your entities? Streamlining and customization like this isn’t available to businesses using various registered agents.
5. National reach
Of the hundreds of professional registered agent providers in the country, relatively few operate in all 50 states and the District of Columbia. But when you select a professional registered agent who has multi-state coverage, there’s someone to help you no matter where you expand to next.
6. Maintaining good standing
When you use a single registered agent, you have a built-in partner who can see the breadth of your compliance obligations and can help you with so much more than just registered agent requirements. For instance, CT Corporation offers services to help you file and track your annual reports, corporate document filings, and business licenses.
7. Simplified compliance
Different states have varying requirements for businesses operating within their jurisdiction. By having a single registered agent, the business can ensure that all compliance documents, legal notices, and state-specific requirements are managed efficiently and accurately.
8. Expertise and experience
Professional registered agents typically have experience in dealing with the nuances of compliance requirements across various states. Their expertise can help businesses navigate complex regulations more effectively.
To sum up
As your business has grown, you may have chosen different registered agents in different states. But there are distinct benefits to choosing a single registered agent to represent your corporation or LLC everywhere. If any of the points above could benefit your business, it may be time to adjust your registered agent strategy.
Learn more
It is essential to carefully select a reputable registered agent with a strong track record to ensure that all these benefits are realized effectively. Choosing the right registered agent can be crucial in maintaining the multistate business's smooth operation and compliance with relevant laws and regulations. Learn more about CT Corporation's Registered Agent Solutions.
Frequently asked questions: Registered agent requirements for multi-state businesses
Do I need a registered agent in every state?
All 50 states and the District of Columbia have a registered agent requirement. For LLCs and corporations operating in multiple states, a company must have a registered agent in its formation (domestic) state and in each foreign (non-domestic) state.
Does a registered agent have to live in the state?
A general state requirement is that a registered agent be located in the same state in which a company is doing business. The registered agent must be available during normal business hours in order to receive service of process, and the registered office for the agent must be a physical street address. (PO boxes are not allowed.)
