- What Is a Kentucky Registered Agent?
- Why Businesses Need a Kentucky Registered Agent
- What to Look for When Choosing a Kentucky Registered Agent
- How Much Do Registered Agents Cost?
- What’s the Best Registered Agent Service in Kentucky?
If you’re interested in running a business in Kentucky, then you need a registered agent. A registered agent acts as a point of contact for the state on behalf of your business.
In this article, you’ll learn everything you need to know about registered agents, including what they are, what they do, and why you need one. We’ll also share advice on how to choose a registered agent and offer recommendations for registered agent services.
What Is a Kentucky Registered Agent?
A registered agent receives all communication from the state on a business’s behalf; this includes services of process. After receiving communication, the registered agent ensures the business is notified. Usually, important documents are immediately uploaded to a digital server where they are easily accessible.
Businesses in Kentucky are required by law to have a registered agent so that the state knows who to reach when it contacts your business. Registered agents are elected upon the formation of a business, but they can be changed down the line.
What Are the Requirements to Be a Registered Agent in Kentucky?
Just about anyone can be a registered agent. The only requirements are that registered agents are 18 or older, maintain a physical address in Kentucky, and keep regular business hours.
This means you could serve as the registered agent for your business if you wanted to. Similarly, a business partner or employee could be your registered agent, as well. Most companies, however, choose to hire a registered agent service, and we’ll talk more about why in our next section.
Why Businesses Need a Kentucky Registered Agent
As you’re aware, it is Kentucky state law that businesses must have a registered agent. However, registered agents are worth having, even if the state doesn’t mandate it. In this section, we’ll explain the many ways registered agents are useful and why hiring is often preferable to being a registered agent yourself.
The state of Kentucky expects certain things from businesses, and it’s vital that they comply with these expectations. For example, businesses must file their annual reports on time. Similarly, they must respond to service of process before the given deadline.
Should a company fail to do these things, it can lose its good standing with the state. This comes with consequences such as losing limited liability protection. In the worst-case scenario, a company with bad standing could be banned from operating in Kentucky.
This is where registered agents come in. They help businesses stay on track because they keep compliance calendars and send reminders about important dates. Some registered agent services can even help companies get back into good standing if they’ve lost it.
If privacy is important to you, you’ll want to hire a registered agent. This is because a registered agent’s address is public record and can be easily found on the Kentucky Business Entity Search. If you want to keep your address private, being the appointed registered agent for your company isn’t an ideal option.
If your business has a physical location, you may think it’s best to use its address to be a registered agent. This is not always the best choice, though. Business mail, junk mail, and legal mail will all be mixed together.
Not only that, but you will receive service of process at this location. If this were to happen in front of employees or clients, it could lower the morale of workers. Not to mention, it would likely be a bit embarrassing.
According to the 2018 U.S. Census, 85% of households report having an active internet subscription. Therefore, it’s no secret that the internet is a valuable resource as you can run a business completely online.
The only downside to this is that if you did want to be your own registered agent, the only address you’d be able to use is your own. If you’re uncomfortable with that, you’ll be better off hiring a registered agent service.
Irregular Business Hours
One of the requirements to be a registered agent is to keep regular business hours. However, this isn’t realistic for everyone.
Aside from that, you may need to take business trips or visit other company locations, which would also prevent you from keeping regular business hours. If you work irregular hours or need to travel, then hiring a registered agent service will be beneficial to you.
Another benefit is that a registered agent service will always have someone available to receive communication from the state of Kentucky.
The files sent by the state of Kentucky are important, so they need to be kept organized. Registered agents immediately scan and upload documents they receive to digital servers so they can be accessed immediately.
A decent registered agent will also make sure that digital files are well organized so that they’re easy to find. Beyond this type of organization, registered agents also keep track of deadlines and send reminders.
You could certainly do this type of clerical work yourself, but hiring is worthwhile for a couple of reasons. First, a dedicated registered agent can handle files immediately, whereas a busy business owner may have to wait until later in the day to open and organize documents.
Second, hiring a registered agent will save you time. Organizing legal documents is important, but it’s rather menial work. Most business owners have plenty to do already and find it worthwhile to hire someone else to handle these types of tasks.
Locations in Different States
If your business operates in more than one state, you need to have a registered agent for each one. Hiring a registered agent service with locations in multiple states is a great option because you will only need to interact with one company. This keeps things nice and streamlined.
What to Look for When Choosing a Kentucky Registered Agent
If you’re looking to hire a registered agent in Kentucky, you may have difficulty choosing between the many options. Considering factors such as price, services provided, and time saved may help you come to a decision.
Budgets are important, but registered agents don’t cost that much. Rather, when it comes to price, you should be thinking more about value.
For example, does one company offer the same number of services but for a better price? Are there services you don’t feel are worth paying for? Are there services you are willing to pay extra for? As you can see, there is much to consider when thinking about price.
At the minimum, registered agents will accept documents on your business’s behalf and get them to you, maintain a physical address, and keep normal business hours. However, some registered agents will do more.
You may find registered agent services that accept a limited amount of normal business mail. Some registered agent services provide help hotlines where you can ask business-related questions. This can be helpful to first-time business owners. Be sure to think about the services provided and how they can benefit you.
As the saying goes, “time is money.” There are few things that are valued more than time. When shopping for registered agents, consider how much time they can save you. It’ll be worth it to hire the registered agent that saves you the most time.
How Much Do Registered Agents Cost?
Registered agents are not expensive. They only cost between $50 to $300 per year on average. If you act as the registered agent for your company, there is no cost at all.
You should be aware that registered agents may have certain charges. For example, most are happy to help businesses file their annual reports, but they will not do so for free. They tend to charge more for large companies like corporations than LLCs. Any fees or charges should be made known to you before you commit to hiring.
What’s the Best Registered Agent Service in Kentucky?
If you’re looking for a registered agent in Kentucky, we recommend ZenBusiness. This company’s registered agent service costs only $99 per year, and they are upfront about all the features you will receive as well as any potential charges.
ZenBusiness also has a Worry-Free Compliance service that ensures you don’t miss deadlines for annual reports required by the state of Kentucky. You will also receive alerts and updates to keep you on track. Should you somehow miss a deadline, you’ll be provided with the support you need to get your business back in good standing with the state.
ZenBusiness is one of the best options for registered agents, but if you’re looking to compare services, we’ve got your back. Check out our article comparing all the best registered agent services.