What is a “registered agent”– A registered agent isn’t just a perk – it’s a mandate by the state of Texas. But you can’t hire just anyone to perform this service.
A professional registered agent is a business or individual designated to receive and forward legal documents such as lawsuit pleadings or notices from the state. The purpose of the registered agent is to provide a legal address where someone will be available during normal business hours to receive these notices and documents. Unlike some other responsibilities, in Texas, this is not a “nice to have”, but is a mandate by the state law. Failure to maintain a registered agent can have a negative impact on the business, including penalties or even revocation of the company’s authority to do business in the state.
While some businesses opt to have an officer or employee serve as the registered agent, many choose to designate a professional such as their lawyer or a company that specializes in providing registered agent services. This choice may be especially beneficial when the principals of the company are not able to ensure that they will always be available during normal business hours to receive these documents or the company desires to maintain confidentiality of certain legal matters.
Experience and Flexibility
A professional serving as your registered agent understands what is required to establish and accept a service of process agent and understands their role not only at the time of appointment but throughout the term of financing. They have the experience to provide flexible and customized services to meet the particular needs of a transaction.
When choosing an agent, it’s essential to engage with a professional that responds quickly to requests. A professional understands the importance of delivering the legal pleadings and state notices to you in a timely manner and recommending a course of response
Trust and Confidentiality
Professional agents understand the exact legal processes or notices they are required to receive on behalf of their client company. As such, a professional agent instills confidence in all parties in the transaction that there won’t be a missed or mishandled legal proceeding resulting in a default judgment.
A professional agent maintains confidentiality and won’t disclose any information related to its appointment or the underlying transaction without seeking the express permission of the appointing party.
Now that you’re aware of the role of an agent and how a professional agent can assist in your day-to-day business, it’s time to consider whether you want to serve in that capacity or have a professional serve as your registered agent who’ll help you every step of the way.