The world is still facing a lot of turmoil when it comes to business. Statistics already show that one in five businesses fail within the first year of operation, but the economic climate in 2023 has only made things become more challenging. Right now, small businesses in the United States are struggling to hire and even retain employees.
Even as remote work has opened up new economic opportunities, business models are seeing a lot of disruption in the wake of inflation and new routines. In fact, more than a fourth of American remote workers are reported to struggle with interruptions while working.
With all of these issues plaguing businesses, it can be easy to feel overwhelmed and feel like defeat is the only option. That said, there are still many ways to survive these tough times. Although it’s far from being a 100% effective solution, working with a registered agent can significantly improve your chances.
What is a Registered Agent and How Do You Get One?
A registered agent is an individual or business entity that is in charge of receiving legal documents and service of process for a business. Many states actually allow a business to be registered as its own agent, but this may open the business up to privacy issues and further liabilities. As such, business owners can appoint an employee or a professional agent as the registered agent.
When you have a business that is filed as a corporation or limited liability company (LLC), you are required to have a registered agent. The process of getting and filing one may differ depending on what state you are in, but it is always a legal necessity to have one in the United States.
It’s good to do some research on the nuances of these changes. For instance, finding a registered agent in New Jersey is largely the same as it is in California. You would be able to check the Secretary of State for filing requirements and you can use a commercial registered agent service to get one. That said, New Jersey requires you to file a Certificate of Registered Agent form whereas California uses the Registered Corporate Agent for Service of Process Certificate. The two states also have different filing fees.
It’s a lot easier to find a registered agent these days as you can easily just get one online. As Grace Nwajiaku has written, technology has really revolutionized the experience for businesses. It’s a lot easier to find trustworthy resources these days without having to go out of your way.
Why a Registered Agent Can Save Your Business
Even if your business is struggling, it doesn’t mean you are destined for the extreme end of the spectrum. The Bureau of Labor Statistics finds that 50% of businesses can survive their fifth year, even with the ups and downs that come. Here’s how a registered agent can be a lifeline:
Providing Better Work-Life Balance
When you are burned out and trying to pick up the pieces of a perilous situation, it can do wonders just to have some time away from all the noise and gather yourself. You can come up with a game plan and be even more present when you are not having to be on the clock 24/7. The University of Warwick has found that happy workers are more productive than their unhappy counterparts.
With a registered agent, you can firmly separate your personal life from business. They reduce your time having to tackle administrative paperwork, they let you work remotely as they will receive legal documents, and you get peace of mind knowing they are required to forward essential communications to you within working hours every day.
Protecting Legal Compliance
Registered agents receive your tax notices promptly and help you to avoid penalties for missing legal correspondence. You stay up-to-date with any compliance concerns and immediate concerns from a legal standpoint because of their services. Additionally, you get a layer of security because all communications and service of process get addressed to the registered agent. This protects your personal and business address from the public.
Providing Business Continuity
When you have a registered agent, you are giving yourself another avenue for business continuity. Say a disgruntled customer files a legal complaint against your company. A registered agent will handle the processing of this documentation.
If you are unable to be present at your operational location or your business must temporarily close, a registered agent will still be able to receive important notices and reports. They can also provide a secure location for any business documents and records. The Federal Emergency Management Agency notes that 40% of small and mid-sized businesses cannot cope with disaster recovery, so you want to have all the resources you can get to protect your business continuity.
