Should I Obtain a Registered Agent Even When Working from Home?
When entrepreneurs plan to form a new company, one goal they may have is to conduct a successful business from the comforts of their own home. Setting your own schedule and operating on your own terms sounds great and less stressful to many. When forming your new company, your formation state will want to know who the Registered Agent will be. Having a registered agent is a legal requirement for home-based businesses, and it's important to note that the Registered Agent has to be located physically within the domestic state of incorporation.
While many variables come into play as to the type of business an individual may want to form, we've recently seen a growth of clients forming companies with the plan of operating from home, especially with new technological advancements and platforms.
During the formation process, this has led many to wonder, 'Where can I locate a Registered Agent for my company?' Or, 'Can I be my own Registered Agent in a specific state?' The answer is yes. If you plan to be at the business location, albeit a home address within the state of Incorporation, during business hours Monday through Friday to receive correspondence from the domestic state of Incorporation's Division of Corporations, you can be your own Registered Agent.
The correspondence received from a State's Division of Corporations can sometimes include annual report reminders for a specific state and the Registered Agent will also sometimes receive legal documents such as a Service of Process. In Delaware, the Registered Agent is sometimes known as the middle link between the company and the Delaware Division of Corporations. Harvard Business Services, Inc., as a Delaware Registered Agent, will send reminders regarding annual Delaware fees, such as the Delaware Franchise Tax and Registered Agent fee, along with government notices or Service of Process, if received.
In many situations, however, clients do not plan to be available throughout business hours while operating a business from their home. While some feel that they will be available throughout business hours to receive important legal documents, others do not always plan to work from a specific location and may be constantly on the go. A client may travel around a state or the country conducting business and not be at their home address each business day. Other life occurrences may also pop up, forcing an individual to operate their business from the road temporarily.
Since the Registered Agent is generally required to be at the address provided during business hours, this has led many clients to appoint a Registered Agent within a state for their company so that the agent can take care of receiving and forwarding any legal documents to the company that they receive from the state's Division of Corporations to ensure smooth communication between the company and Division of Corporations. Appointing a Registered Agent sometimes will make an individual's business process stress free and alleviate any concerns.
Another reason why clients sometimes prefer to appoint a Registered Agent in a state of operation is because they may not want to list their home address on a state's application where it asks for the Registered Agent information. Therefore, when appointing a different Registered Agent, that agent's details, such as their name and address, will be listed within the state's Division of Corporations records where the formation document is filed. The information required by each state varies, but this is sometimes a key concern clients have.
And finally, if an individual forms a company with the plans of conducting business from home in a specific state but then in the future, plans to operate the company physically or hold an asset in another state, the individual can appoint a Registered Agent during the foreign qualification process. For example, if an individual forms a Delaware company domestically and then plans to foreign qualify the company in Maryland, the Maryland application will ask for the Maryland-based Registered Agent. Clients can then appoint a Maryland-based Registered Agent.
If you have plans of forming a new company with the goal of working from home, you can appoint a Registered Agent in a specific state, here. Or, if you need assistance with the preparation and filing of the formation documents for a domestic formation in a specific state, feel free to contact Harvard Business Services, Inc., as we can assist you.
If you have any questions about obtaining Registered Agent Services for a specific state, feel free to contact us at 1-302-645-7400 or 1-800-345-2677 ext. 6900 or via email at info@delawareinc.com.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.