Every corporation or LLC must have a Registered Agent in its state of formation and in each state where it’s registered to do business as a foreign corporation or LLC.
ComplianceAugust 02, 2023

Eight reasons why multistate businesses should use a single registered agent

Every corporation or LLC must have a Registered Agent in its state of formation and in each state where it’s registered to do business as a foreign corporation or LLC.

A Registered Agent receives service of process, official state government and judicial documents on behalf of your corporation or LLC, and forwards those documents to your company quickly and efficiently. The larger your business, the more likely you are to receive a high volume of these documents, which usually need to be handled in a short timeframe before they start costing you time and money.

As businesses grow, many will appoint different Registered Agents as they expand into new states. You may use an attorney in your home state, then appoint an employee in a satellite office across state lines, and then appoint a professional Registered Agent company in another state where your business has no physical presence. Relatively few professional Registered Agents operate in all 50 states, so you may even appoint different professional Registered Agents in different states.

It might feel easier to manage the Registered Agent requirement in this haphazard way. But it’s almost definitely causing you more difficulty in the long run. Here are eight reasons why it makes sense to use the same professional Registered Agent in every state where you do business.

1. Single point of contact

Using the same Registered Agent provides a single point of contact who knows your business and gives you correct, consistent information about your compliance responsibilities in each state. Of course, for this to work in your favor, you have to select a Registered Agent that has extensive compliance experience and makes its knowledge available to its customers. For instance, CT Corporation has a team of subject matter experts that monitors upcoming state legislation and lets you know about changes to the law or administrative policies that can affect your company.

2. Consistency in process

Having one registered agent ensures consistency in the handling of legal documents and communications, reducing the risk of misunderstandings or errors that may arise when dealing with multiple agents.

3. Simplified billing

Your single point of contact should be able to simplify your billing, for instance, by creating a single renewal date for all services. This cuts down on your internal costs: fewer purchase orders you have to fill out, checks you have to cut, and reimbursements you have to submit. Some Registered Agents, like CT Corporation, can simplify your life even further by offering bundled services that let you consolidate your annual reports and corporate document filings onto a single annual flat fee.

4. Tools and options to fit your workflow

Having dedicated tools to manage your entity compliance helps reduce risk and save time. Do you want to go paperless for all your SOP? Do you want customized delivery options, like sending all garnishments directly to the payroll department? How about a single website to monitor the compliance status of all your entities? Streamlining and customization like this isn’t available to businesses using multiple Registered Agents.

5. National reach

Of the hundreds of professional Registered Agent providers in the country, relatively few operate in all 50 states and the District of Columbia. But when you select a professional Registered Agent who does, there’s someone to help you no matter where you expand to next.

6. Maintaining good standing

When you use a single Registered Agent, you have a built-in partner who can see the length and breadth of your compliance obligations, and can help you with so much more than just your Registered Agent requirements. For instance, CT Corporation offers services to help you file and track your annual reports, corporate document filings, and business licenses.

7. Simplified compliance

Different states have varying requirements for businesses operating within their jurisdiction. By having a single registered agent, the business can ensure that all necessary compliance documents, legal notices, and state-specific requirements are managed efficiently and accurately.

8. Expertise and experience

Professional registered agents typically have experience in dealing with the nuances of compliance requirements across various states. Their expertise can help businesses navigate complex regulations more effectively.

To sum up

As your business has grown, you may have chosen different Registered Agents in different states. But there are distinct benefits to choosing a single Registered Agent to represent your corporation or LLC everywhere. If any of the points above could benefit your business, it may be time to adjust your Registered Agent strategy.

Learn more

It is essential to carefully select a reputable registered agent with a strong track record to ensure that all these benefits are realized effectively. Choosing the right registered agent can be crucial in maintaining the multistate business's smooth operation and compliance with relevant laws and regulations. Learn more about CT Corporation's Registered Agent Solutions.

Expertise to support your new or growing organization 

CT Corporation has been safeguarding businesses as a professional registered agent since 1892.

Trust CT Corporation as your professional registered agent to handle vital legal communications that help your organization avoid risk of fines, penalties and unanswered service of process.

The CT Corporation staff is comprised of experts offering global, regional, and local expertise on registered agent, incorporation, and legal entity compliance.

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