When you form a corporation or LLC in Texas, you must appoint a registered agent. This person is responsible for receiving official documents like service of process and other important correspondence on behalf of your business.
You can hire a professional registered agent service or appoint a family member as your registered agent. Choosing a registered agent is important for several reasons.
Legal Requirements
If you are a business entity formed in Texas and you want to be recognized by the state, it’s a good idea to choose a registered agent. This person or company serves as a point of contact for the Secretary of State and other authorities.
A registered agent can be a single person or a third party company. They need to be in Texas, available during business hours at a physical street address and available to accept service of process notices on behalf of the business (a summons or a lawsuit).
It’s also important that your registered agent has the expertise and knowledge needed to serve your business. A well-informed registered agent knows the state’s statutory and compliance requirements, has staff that is trained in handling and forwarding SOP papers, and has state-of-the-art processes to deliver vital documents to you. They also have the support you need to keep your business organized and up-to-date on all of the notifications coming in from the government.
Choosing a Registered Agent
Choosing the right Texas registered agent is essential to your business’s compliance and legal standing. Failure to do so could cost your company fines, penalties, and even lead to a lawsuit against you.
Typically, a registered agent is an individual or business that receives all legal mail and government notices on behalf of your entity. They’ll also be tasked with filing various state matters, such as annual reports and franchise taxes.
A registered agent’s responsibility is to be available during normal business hours, and to accept service of process (the delivery of legal documents). They should feel comfortable receiving such notices on your behalf.
You can be your own registered agent, but most businesses use a third-party service. This can save you a lot of time and money in the long run.
Address Requirements
In Texas, all businesses must choose a registered agent to receive legal notifications like service of process. They must provide this information to the secretary of state when they file their business formation documents.
A Texas registered agent must have a physical address in the state where they can be served with legal notices during regular business hours. This can be a difficult task for owners who are traveling, meeting with clients or taking time off.
You can use a friend or family member to serve as your Texas registered agent, but it is important that they be available during normal business hours and don’t mind their address being listed in public records.
You can also hire a Texas registered agent service (also called a commercial registered agent). These services typically charge very affordable fees.
Fees
A Texas registered agent is an important part of maintaining your company’s legal status. They receive vital legal mail and court documents on behalf of your business.
They also have the duty to respond promptly when receiving these notices. Often, their responsibility includes preparing and filing these documents with the Texas Secretary of State.
The registered agent’s address is listed on public record and accessible through the Texas SOS website. Generally, a Texas registered agent must be available at the address they provide during regular business hours to accept service of process.
A registered agent should also provide a private mailbox where your essential business documents can be kept secure and out of sight of the public. They should also offer updates and reminders about upcoming state requirements to help keep your business compliant.
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