Forming a business or changing the structure of an existing business can be fraught with confusion particularly if you are required to register your company directly with the state (your state’s secretary of state). If you are forming a business entity check with an experienced business lawyer who can help you understand the best entity to form and your legal obligations in forming that business.
Needing a Registered Agent. What Is a Registered Agent?
A Registered Agent is a person designated to accept service and correspond on behalf of your company, if the named officers cannot be reached (or served). For instance, in Texas, according to Texas Business Organization Code, a registered agent is an individual who can directly correspond with the state on all official corporate matters. This person will receive any notifications from the state regarding the corporation and will be responsible for filing all state mandated corporate charters and renewals. Anyone affiliated with the business, including financial institutions, may act as the registered agent, and you can also hire a registered agent to act on your companies behalf.
Which Companies Are Required to Have a Registered Agent?
All Texas Corporations and LLCs are required to name a registered agent. Failure to name someone to this position may result in your company losing it standing with the state or it may result in a complete forfeiture of company assets.
Authority as a Registered Agent
While the registered agent will act on behalf of the corporation, he/she does not possess decision making authority unless specifically granted this authority, by the corporate officers. For example, he/she will not have the authority to negotiate and enter into contracts on your company’s behalf. He/she will only work with the state to maintain compliance with all state business regulations and filing requirements.
Appointing Your Business Lawyer as Registered Agent
Some entrepreneurs believe that they can handle all aspects of their business on their own. This may be true for small sole proprietor business or general partnerships with limited business operations and limited liability. However, as your business grows, it will become more difficult for one person to handle all aspects of the daily requirements of your business. By naming a business lawyer you can trust, as the registered agent for your corporation, you will be assured that all state regulatory requirements will be met, as they are trained to know how to calendar and respond to necessary communications received. By naming your business lawyers as a registered agent, they will also be professionally responsible to ensure that no deadlines are missed because of a simple oversight and that your documents and financial documents are prepared and submitted on time, as they are ethically bound to act in your best interest.
Contact the representatives at Goldstein & Scopellite, PC for more information on appointing a registered agent. They can be reached at 214-351-9100.
