In this week's Freedom Friday blog and email newsletter, I'm going to talk about a subject that comes up with a lot of my new clients who are wanting to form a new business entity for their small business, and that's a registered service agent, also sometimes called a registered agent. If you're forming a new business entity in Oklahoma, or even if you're domesticating a foreign business entity in Oklahoma (that means a business entity which was formed in a different state but is needing to register to do business in Oklahoma), then you must have a registered service agent. So, in this week's Freedom Friday blog and email newsletter, I'm answering the question, “Why does your small business need a registered service agent?”
The biggest reason why your small business needs a registered service agent is that it's required by the law. We are blessed in Oklahoma to have a Secretary of State which runs a largely automated process for the forming of business entities, especially limited liability companies (LLCs), but also nonprofits, limited partnerships, for-profit corporations, and other business entities. However, as part of the formation process, you will have to name a registered service agent, which can be an individual or a business, and can even be the newly formed LLC or other business entity, itself. The only requirement is that the registered service agent must have a physical address in Oklahoma, and that address cannot be a PO box.
The most frequent question I get asked regarding a registered service agent is what a registered service agent does. The primary purpose of the registered service agent is to accept legal papers and notices served on your business. For example, if God forbid your small business gets sued, the registered service agent would be the person or entity served with the lawsuit. Also, if there are any legal notices that need to be served on your small business, those would also be served on your registered service agent on behalf of your small business.
Since a registered service agent is required by law, you do have options in choosing who or what to serve as your registered service agent for your small business. You can be your own registered service agent, or you can choose a company or even a law firm to serve as your registered service agent. Many small business owners choose to be their own registered service agent, and that is fine for some. However, if you have a retail operation, you may not wish to be your own registered service agent. You might not want a process server visiting your small business to serve you with legal papers in front of customers. That can be very embarrassing for small business owners and cost them business due to the embarrassment. This is why many small business owners choose a company that specializes in being a registered service agent for a small fee, or even choosing a law firm that serves that purpose. Liberty Legal Solutions, LLC, serves as a registered service agent for several LLCs, nonprofits, and limited partnerships. We offer a registered service agent program for an annual fee of $150.00, and many small business owners who come to us for business formation services also take advantage of our registered service agent program. It is the icing on the cake for their new business entity and their small business.
Thinking about starting a small business? Or maybe your small business is having issues with contracts, leases, business partners, collection issues, or experiencing other barriers to growth? Please contact me at [email protected] to schedule a FREE strategy session.
For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/