Delaware Registered Agent
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What Is a Delaware Registered Agent
A registered agent receives all legal communication (including service of process) from the state of Delaware on behalf of a business. They make sure that the appropriate person at the business is notified of any communication from the state. Registered agents are also known as resident agents or statutory agents. Delaware law requires businesses to have a registered agent. This is because having a single point of contact ensures that communication will reach the business; such a system prevents confusion and keeps businesses accountable for meeting deadlines set by the state. Usually, a registered agent is appointed upon a business’s formation.What Are the Requirements To Be a Registered Agent in Delaware?
Just about anyone can be a registered agent, including you. Similarly, a friend, spouse, business partner, or employee could also be the registered agent for your company. That is because registered agents only need to be 18 or older, maintain a physical address in the state, and keep regular business hours. As you can see, the requirements are not strict, so anyone who can meet these three requirements is eligible to act as a registered agent. Even though anyone could be a registered agent, many businesses still prefer to hire registered agents from companies specializing in registered agent services rather than just having anyone do it. We’ll explain why in our next section.Why Businesses Need a Delaware Registered Agent
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Compliance
Businesses need to remain compliant with the state. This means meeting deadlines such as those set for annual reports. Similarly, businesses are required to respond to service of process by a set date. If a business is continuously missing these deadlines, there are consequences. Ignoring service of process often means incurring fees, and missing state due dates can cause a business to lose good standing. This puts protections like limited liability at risk. Registered agents keep a calendar of important deadlines and send businesses reminders. This keeps businesses on track so that they file annual reports and any other important documents on time. As a business owner, there’s already a lot on your plate. It’s nice to hire a registered agent so that you don’t have to worry about forgetting a deadline.Privacy
Anyone can find a registered agent’s address because it is public record and is easily accessible on the Delaware General Information Name Search. If you value your privacy, then this is one reason why you might choose to hire a registered agent. If you have a physical location for your business, using its address isn’t always the best option. Should you receive service of process, it may happen in front of employees or clients. Not only would this be embarrassing, but it may lower your worker’s morale as they worry about their job security. If you hire a registered agent with their own address separate from your business, then they will receive service of process on your behalf. You’ll be notified of the situation privately.Online-Only Business
The internet has created new opportunities for both individuals and businesses. Online marketplaces thrive and a lot of work can be done from home. In 2018, 85% of households reported having an internet subscription. If your business will be run completely online and you do not want your personal address to be made public, then being your own registered agent isn’t going to work. Instead, you’ll need to hire one.Irregular Business Hours
Remember how we said one of the requirements for a registered agent is to maintain regular business hours? Well, for some people, this is not possible. If you are one of those people, then you won’t be able to act as your own registered agent and will have to hire someone instead.Organization
A good registered agent will keep all of the documents they receive organized; this means both in filing folders and in online data storage. Though you may be too busy to immediately sort through documents from the state, a dedicated registered agent isn’t. They often scan and upload important documents right after they receive them. As we mentioned before, registered agents also keep track of deadlines and keep a schedule for reminders. All in all, they are very organized people. Even though you could certainly do this type of work yourself, it’s often easier to hire a registered agent service because it saves you time and means less responsibility on your plate.Locations in Different States
If your business will be operating in more than one state, then you’ll need a registered agent in each state. You can certainly be the registered agent for Delaware should you choose to, but you’ll still need to hire others for any states your business is active in.What To Look for When Choosing a Delaware Registered Agent
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