If you’re doing business in multiple states, then you already know that things can get pretty complicated pretty quickly after your business crosses its first state border. From knowing the tax laws in each state to understanding your business license requirements, there is a list of important information you will need to be informed about and new steps you’ll need to take for each state you expand into.
However, many business owners realize too late that they will also need to expand to have a Registered Agent in each of the states where they are doing business.
Luckily, there are many options available for business owners through Registered Agent services that will ensure their business remains compliant with a Registered Agent in each state where they do business.
Let’s take a closer look at the three top reasons it is beneficial to use a single Registered Agent for your multi-state business.
Doing Business in Multiple States? Here's Why You Need a National Registered Agent Service
Reason 1: It’s More Efficient
Without a national Registered Agent service, you need to find a Registered Agent in each of the states where you're doing business. Remember, a Registered Agent is a business or individual that receives important documents and correspondence from the state and federal government as well as other agencies.
The Registered Agent then forwards that information to your LLC or corporation. The idea behind a Registered Agent is to have a location where somebody will always be available to receive important documents in a timely manner and make sure you get them
Some business owners choose to act as their own Registered Agent; however, this is not an option in multiple states because you must have an address in each state in order to be a Registered Agent. That leaves the choice between having multiple Registered Agents across states or choosing a Registered Agent service that has the experience and capabilities to collect official documents for your business in multiple locations.
Using a service that has the ability to receive your official documents in each state and then can quickly upload your documents and forward them electronically to you cuts down on time and hassle. This is a simple and efficient choice that frees you up to focus on growing your business, rather than keeping tabs on multiple Registered Agents across state lines.
When you work with a national Registered Agent service, your paperwork should all come in the same manner, billing is centralized and you will have just the one contact to work through for the Registered Agent services across multiple states.
Efficiency is one of the most important goals for any business owner, so choosing a simple method that makes handling the details centralized, streamlined and quick is one choice you can make now that will free you up to focus on success later on.
Reason 2: Smaller Margin of Error
Imagine you hire a different Registered Agent in each of the states where you do business. In one state, you hire a lawyer to be your Registered Agent; in another state, perhaps you hire a CPA to be your Registered Agent; and in your home state, you act as your own Registered Agent.
That’s a lot of mail and paperwork to keep track of! Plus, you have to pay each of them a fee. The whole point of a Registered Agent is to ensure that no important documents from the government or official agencies get lost. If you have many different Registered Agents with different systems, policies and procedures — not to mention different contacts at each of the locations — there will be plenty of opportunities for things to slip through the cracks.
Most of the businesses that offer Registered Agent services do so with the additional benefit of keeping all of your official documentation, mail and paperwork centralized. These businesses use electronic submission, so they upload images of your documentation and immediately notify you of it electronically.
This eliminates many of the pitfalls associated with transmitting paperwork through the mail. You also have one centralized contact who will get to know you and your communication style, which can help ensure that your documents are received on time and in the way that’s easiest for you to keep track of.
You will become familiar with how the Registered Agent service works, how communication is handled and what to expect. That level of familiarity from both parties helps to keep mistakes at a minimum.
Reason 3: Peace of Mind
Your Registered Agent will need to be up to date on all current laws and regulations that pertain to Registered Agent services, including how governments and other official agencies are delivering important documentation and how quickly that documentation will need to be filled out and resubmitted.
Registered Agent services that have grown to offer their services across many states have been able to prove that they are up to date and informed on the requirements and have a proven record of keeping their clients up to date as well.
Not only that but having your Registered Agent services centralized with one company rather than multiple consultants across states will also protect your privacy. You will be able to rest assured that the Registered Agent service is protecting your information, plus there will be less opportunity for sensitive information to get hacked or leaked out when dealing with just one company versus multiple multi-state consultants.
When you, as a business owner, can gain some peace of mind knowing that the Registered Agent service you hire is going to do the work necessary to keep informed, that they know what is required of them and you and that your sensitive information is protected, then you can work on growing your business with confidence.
Choosing the Best National Registered Agent Service
When you choose a Registered Agent service to do business across multiple states, you reduce cost, eliminate hassle and confusion, protect your privacy and ensure you get all your important documents, no matter where your business is located or where you are.
Incfile offers comprehensive Registered Agent services across all 50 states — and if you incorporate through us, we’ll provide the service free for the first year.
Nicole Bowman is a freelance writer who thinks turning research into stories is the best gig ever. She started writing billboards back in 2002, worked in book publishing in New York for many years and now she creates all sorts of engaging content for the web. Nicole lives in Rehoboth Beach, DE, with her husband, two sons and their poodle, Tootsie. She loves the great outdoors, bookstores and tennis.