Q & A
When forming a new company or registering an existing business in another jurisdiction, state laws require that you appoint a Registered Agent and, almost always, a registered office. Failure to maintain a Registered Agent may result in the administrative dissolution of the business entity or the forfeiture of its authority to conduct business. Conducting business without such authority may subject the business entity to significant fines and penalties.
While a company is prohibited from naming itself as Registered Agent, a natural person can act as agent, at least in their State of residence. But the drawbacks to doing so are many.
People travel. Vacations and other matters frequently take essential personnel away from the office. In the absence of a responsible employee, an organization might be at greater risks resulting from a costly default judgment for failure to answer a complaint within the court-mandated response period. Needless delays are not looked upon favorably by the Courts.
Businesses move. Accordingly, a principal office address will change from time to time. The systematic appointment of an independent registered agent mitigates the need to comply with the legal requirements of changing the registered office location with state authorities each time a relocation occurs.
Discretion and confidentiality matter. An independent Registered Agent affords an economical level of privacy to eliminate needless exchanges with process servers and court appointed law enforcement personnel when sensitive documents are delivered in view of employees and clientele at the office or neighbors at home. Be it a garnishment of employees’ wages, a subpoena, violation notice or other complaint, TRAC ensures that the contents of legal correspondence are held in confidence.
Being sued can be a PR nightmare. An independent Registered Agent is accustomed to the delivery of court documents, eliminating the scandal-factor of having private process servers and court appointed law enforcement personnel standing in your lobby or knocking on your front door.
On one end of the Registered Agent spectrum is a handful of large, bureaucratic companies whose services are – by nature of their enormous size – perfunctory, expensive and impersonal. The likelihood that SOP will be mishandled is much greater. (These are the same companies that dominate the online search results.) If your documents get lost in a giant company’s haystack, and you therefore don’t respond– then prepare for a summary judgment and a difficult and expensive recovery. Even if it wasn’t your fault, it’s still your problem.
On the other end of the spectrum is an assorted confederation of small agent providers that lack the resources, experience, data security and technology required to provide reliable service for even routine Registered Agent needs, let alone any that require special expertise. Many don’t carry expensive, yet vital, Errors & Omissions insurance. With these companies, you’ll get what you pay for – a lot less.
Our streamlined SOP allows us to operate with much lower overhead than the giants, offering greater cost efficiencies from the start. Unconstrained by the bureaucratic mindset that often defines our staid competitors, yet equipped with state of the art technology and deep expertise, we have the best capacity in the industry to be more responsive to our clients’ instructions and specific needs.
And yes – we will actually answer the phone when you call. And yes – we carry Errors & Omissions Insurance.
That’s why we’ve invested significant resources into our cloud-based technology systems – built using state-of-the-art security model and encryption to provide the highest levels of protection available. For more detail about all of the ways TRAC protects your business, please visit our Security & Privacy page.
As your Registered Agent, TRAC is responsible for receiving and forwarding any legal actions when an action is brought against your company. We make sure that all the right individuals – the people you choose – receive legal process in record time, often within a few hours from the time TRAC receives these documents.
Our job is to respond quickly, mitigating the risk of having a default judgment declared against your company due to a missed deadline for response. This service also insulates company management and staff from unannounced visits from private process servers or court-dispatched law enforcement. These individuals do not belong in your office – or worse – your home.
TRAC Associates are independent corporate and professional services companies that partner with TRAC to provide services related to Resident Agent services, such as lien/litigation searching, document prep/filing, and recording/retrieval.
These companies maintain close ties with state, local and municipal authorities and are the first to be aware of any changes to statutory fees or policies. They are exceptionally adept at understanding the finer nuances of parochial procedures, and as a result, they are often able to detect and correct subtle errors in critical documents, thereby preventing rejected or unacceptable filings.
Whenever lenders are involved in a company’s business transactions, their top priority is to safeguard their investment. These protective measures come in the form of rigorous requirements, which often include the designation of one or more Independent Directors, or Independent Manager in the case of a Limited Liability Company (LLC).
The Independent Director/Manager or Special/Springing Member plays a critical, independent judgment role that satisfies both lender and legal requirements. In brief, the Independent is in place to help prevent a debtor (or sometimes creditor) from attempting to derail an obligation.