Managing a company or a corporate entity is certainly not child’s play; there are so many policies, protocols, and a whole lot of standard operating procedures that have to be looked into, every now and again. You might wonder what role the registered agent services could play in this kind of a setup. The role of such entities gains significance and a great amount of traction only when the companies that they represent are involved in some sort of legal tangle. So, let us first understand who a registered agent is. It is not necessary that a registered agent is an individual; it could be a company or any other kind of business entity who has been contracted to keep track of all mandatory and other procedural issues that are to be taken up.
Pluses And Minuses
Before looking at the pros and cons of appointing a registered agent, one should realize that in most cases, there is no escape from having one as part of the process. Let us take an example to understand this better. Let us imagine that whatever reasons, a company is going through a sticky patch; the company cannot appear on its own in many situations and might not have access to a lot of information because of some ongoing legal issues. In this case, it is common for a company to appoint a registered agent who will ensure that the company is represented every time there is a need. The disadvantages of having an agent are few; the problem could be if you have an agent who is not quite reliable. In short, if the agent does not perform the duties that he has been assigned, it could lead to a lot of problems for the company.
Appointment
It is necessary to ensure that the appointment of a registered agent is done in the proper way. There are forms to be filled up for his and the same has to be done with the right government agency. Usually, this is done at the office of the Secretary of State. It is also important to know the scope of the services that this agent could offer. In some cases, it could be an all-encompassing role wherein the agent has to take over the entire operations on behalf of the company. In others, it could be that only some roles are designated to the agent. Either way, the agent cannot start functioning without clear sanctioning orders in his favour.