5 Common Mistakes to Avoid When Choosing a Registered Agent

Launching your business is exciting! You have a brilliant idea, a catchy name, and a great logo. But before you start selling, there are a few key steps to ensure everything is legal and above board.

One crucial piece of that puzzle is appointing a registered agent.

Think of your registered agent as your business’s official point of contact for the legal world.

It’s the government’s address to send important documents like tax notices, lawsuit filings, and annual report reminders. It’s like your business mailbox for official stuff.

This might sound like a minor detail, but it’s crucial. Missing a legal notice because you chose the wrong registered agent could lead to hefty fines, missed deadlines, and even court appearances!

So, how do you avoid this legal headache? Here’s the good news: choosing the right registered agent doesn’t have to be complicated. But there are a few common pitfalls you want to steer clear of.

We’re going to discuss the top 5 mistakes businesses make when picking a registered agent.

We’ll also show you exactly how to dodge them. By the end, you can choose a reliable partner to keep your business running smoothly and legally compliant. Let’s get started!

Mistake #1: Focusing Solely on Price

We understand — it’s natural to want to save money when starting a business. Registered agent services can range from super cheap to a bit more expensive.

But here’s the thing: focusing only on the price tag can cost you more in the long run when it comes to your registered agent.

Think about it this way. Your registered agent is your lifeline to the legal world. They’re responsible for catching important documents like lawsuit filings or annual report reminders.

Miss one because your agent dropped the ball, and you’re facing potential fines, missed deadlines, and a lot of stress. It’s not exactly the recipe for business success.

Some cheap registered agent services seem like a steal at first glance. But here’s the catch: you often get what you pay for.

Such services might cut corners on things like communication. You could wait forever for a response to your questions, leaving you scrambling to figure things out independently.

Plus, some cheap registered agent services might not offer any additional features. Remember, an excellent registered agent does more than receive legal documents.

Some, like doola, offer bookkeeping, tax filing, or business filing assistance. These features can save you time and hassle, freeing you up to focus on your business.

So, how do you find the best value for your business? Don’t just compare prices in a vacuum. Look at the whole package. Ask yourself:

• Does the registered agent have a good reputation and track record?

• Do they offer clear and easy communication channels?

• Are there any additional features that could be helpful for your business?

By looking beyond the price tag and considering the overall value proposition, you’ll be more likely to choose a reliable registered agent. Thus, you’ll keep your business legally compliant and let yourself focus on what matters most — growth!

Mistake #2: Ignoring Experience and Reputation

Regarding your registered agent, picking someone fresh out of the gate might seem tempting. But trust us, a little experience goes a long way. Here’s why:

Imagine you get served with a lawsuit. Now, legal stuff can be confusing, even for the best of us. A seasoned registered agent has likely seen it all before. They know how to handle these situations efficiently and can guide you through the next steps.

Plus, they’ve dealt with similar situations for other businesses, giving them a broader perspective to help you navigate the legalities.

However, experience is about more than just handling challenging situations.

A registered agent with expertise in your state is familiar with the local legal landscape. They know the ins and outs of state regulations and filing requirements.

Let’s face it, missing a deadline because your agent wasn’t up to speed on local rules could land you in hot water.

So, how do you find an experienced registered agent? Here are a few tips:

• Check their website and social media. Look for information about the company’s history and team members. Established companies often showcase their experience on their website.

• Read client testimonials and reviews. See what other businesses say about their experience working with the registered agent. Positive reviews are a good sign, while many complaints might be a red flag.

• Look for industry awards or recognitions. Awards can indicate a registered agent’s commitment to excellence and expertise.

A quick Google search can also reveal much about a registered agent’s experience.

Websites like the Better Business Bureau or industry publications might have reviews or articles mentioning the company.

Remember, your registered agent is your partner in legal compliance. Picking someone with a proven track record and local knowledge gives you peace of mind, knowing they’ve got your back.

It’s like having a seasoned guide on your business journey, ready to navigate the legal twists and turns.

The extra effort you put into researching their experience now can save you a lot of headaches down the road.

Mistake #3: Overlooking Availability and Accessibility

Need to reach your registered agent in a hurry?

Imagine a situation where you get a critical legal document and have questions.

But your registered agent is only reachable during business hours, and it’s, well, not business hours. That’s where availability comes in.

A reliable registered agent is there for you when you need them, not just when it’s convenient for them. They should have clear and consistent business hours that align with your needs. This ensures you can get ahold of them quickly if something urgent pops up.

Clear communication channels are also key. Look for a registered agent who offers multiple ways to reach them, such as phone, email, or even an online portal.

Here’s another thing to consider: your registered agent’s physical presence in your state. In most states, your registered agent needs to have a physical address within the state.

This ensures they can legally receive important documents on your behalf.

So, don’t pick an out-of-state agent just because they seem cheaper — it might not even be legal!

Now, not all businesses need 24/7 support. But for some, especially those in fast-paced industries, having after-hours availability can be a huge perk.

A registered agent with extended hours or even 24/7 support can sometimes be a lifesaver.

The bottom line is to pick an accessible and responsive registered agent.

Clear communication channels, consistent business hours, and a physical presence in your state — all signs of a reliable partner who can keep your business on track.

Mistake #4: Failing to Consider Additional Services Offered

Think of it like this — your professional registered agent service can be a one-stop shop for all your business compliance needs.

They’ll receive legal documents like lawsuit filings or annual report notices. However, some registered agents go the extra mile by offering additional services that save you time and hassle.

For example, some registered agents offer annual report reminders.

Let’s face it: keeping track of deadlines can be challenging, especially when running a business. A friendly reminder about your annual report filing can prevent a missed deadline and potential penalties.

Here’s another helpful service: business filing assistance. Need help filing formation documents or other legal paperwork? Some registered agents assist with filing, which can be a lifesaver for busy entrepreneurs.

Plus, some registered agents even offer compliance monitoring. They’ll keep an eye on important deadlines and regulations that apply to your business, ensuring you stay on the right side of the law.

Wouldn’t it be nice to have someone else handle all that compliance stuff so you can focus on what you do best?

The key is to choose a registered agent whose services align with your business needs—just starting out?

Maybe annual report reminders are all you need for now. But if you plan on growing your business, consider an agent offering filing assistance or compliance monitoring.

By taking advantage of these additional services, you can free up valuable time and resources to focus on growing your business.

It’s like having a dedicated team behind the scenes, making sure your legal ducks are always in a row.

Mistake #5: Not Verifying Credentials and Legal Standing

So you’ve narrowed your options and found a registered agent with a good deal. Before you hit “sign up,” here’s a crucial step you can’t skip — verifying their credentials and legal standing.

Your registered agent is your official point of contact for legal matters. They are responsible for receiving important documents that keep your business compliant.

But what if your chosen agent isn’t qualified or legally registered?

An unqualified or unregistered agent could put your business at serious risk. Missed deadlines, legal penalties, and even court appearances — these are just some of the potential consequences.

Plus, if you ever get served with a lawsuit, an unregistered agent might not be able to receive it on your behalf, leaving you completely in the dark.

So, how do you avoid this legal nightmare? Verifying a registered agent’s credentials is pretty straightforward.

Most states have a Secretary of State website where you can search for registered agents. Search your state’s Secretary of State website for a business entity search tool. Enter the registered agent’s name and see if they’re listed in good standing.

Here’s a pro tip: some registered agent services might be offered by individuals or businesses not registered in your state.

Remember, in most cases, your registered agent must have a physical address in the state where you operate. This ensures they can legally receive important documents on your behalf.

If you need clarification during your verification process, feel free to contact a lawyer or accountant. They can help you decipher legalese and ensure you’re choosing a reputable registered agent.

Remember, a little due diligence now can save you a lot of headaches down the road. Verifying your registered agent’s credentials gives your business the best chance to stay compliant and thrive.

Get Set for Success With doola

We’ve covered five common mistakes to avoid: getting hung up on price alone, overlooking experience and reputation, forgetting about availability, ignoring valuable additional services, and failing to verify credentials.

Remember, your registered agent is your partner in legal compliance.

Picking a reliable and experienced one gives you peace of mind, knowing they’ll handle important documents, keep you on track with deadlines, and even offer additional services to streamline your business operations.

Don’t settle for anything less than the best! doola can be your one-stop shop for reliable registered agent services.

We also offer various packages to fit your needs, from LLC formation to total compliance. 

Schedule a free consultation with a doola expert today, and let’s get your business off to a legally sound start.