THE REGISTERED AGENT FOR YOUR BUSINESS OR NONPROFIT

By Taylor Kenck

Introduction

Business entities in Washington State (and most states for that matter) are required to have a “registered agent” for their business. Crestview Law provides commercial registered agent services for clients with Washington State business or nonprofit entities. For some clients, these services might not be necessary; for others, they can be an excellent investment.

The purpose of this post is to describe the role of the registered agent and also discuss when it makes sense to hire someone else to fill this role.

The role of the registered agent

It is common for a business or nonprofit entity to not have a public-facing persona—meaning a place the general public can go to interact with the organization. For example, some businesses and nonprofits operate remotely—out of the homes of their employees. Other business entities don’t even really operate as traditional businesses. For example, many landlords will transfer the title to their property to an LLC in order to limit their own liability.

While these entities operate in different but legitimate ways, they underscore a logistical problem: how can the government or public reach them to deliver legal documents?

This is the role that a registered agent fills. When the entity selects a registered agent, it provides the public and the government with someone authorized to receive official documents on its behalf.

And believe me: there will be documents! Most of these documents are harmless notices sent from various state agencies. Some of the notices are important—renewal reminders for the entity, as one example. Occasionally, however, the registered agent may receive more serious notices like service of process from a lawsuit.

Regardless of the seriousness of the notices, registered agents must be selected and available to receive them.

When should a business or nonprofit hire a commercial registered agent?

There are three main benefits to hiring a commercial registered agent: (1) protecting private information like your home address; (2) delegating the responsibility to a professional, and; (3) having an existing relationship with an attorney.

(1) Protecting private information

A registered agent’s contact information is part of the public record. When someone Googles your business, that information will very likely come up on the Secretary of State’s website and even other business databases. Additionally, public record requests to the state government will also show the contact information for the registered agent, including their address.

For some folks, this lack of privacy might not be a big deal. This is especially true for businesses or organizations that implicitly invite the public onto their premises (think of retail businesses, salons, restaurants, etc.). However, our modern economy has many people operating businesses out of their homes—maybe with a PO Box for dedicated business mail. Individuals in this category would still have to provide their physical address to act as the registered agent. This may be a concern for some individuals, especially those that value privacy.

(2) Delegating responsibilities

Selecting an outside, commercial registered agent also allows you to delegate this responsibility to someone else. As a small business owner, I know how incredibly busy this lifestyle can be! Offloading any burden or responsibility to trusted sources is a huge source of relief.

Delegating both the responsibility to receive official documents and be available for service of process may not seem like much. However, it helps ensure that important state documents are not lost, and clients of Crestview Law will also benefit from regular reminders for upcoming state deadlines.

(3) Establishing attorney relationship

Finally, choosing a lawyer as your commercial registered agent ensures that a licensed legal professional is already familiar with you and your business. That way, if you need extra help to expand your business or fix a problem, you don’t have to start a relationship from scratch.

At Crestview Law, I keep in-depth records about my clients and their businesses. This allows me to stay up-to-date on their matters and ready to help as needed.

Conclusion

Washington State requires businesses, nonprofits, and other legal entities to name a registered agent that can receive official documents on behalf of the company.

While many organizations may choose to keep this responsibility “in-house,” selecting a commercial registered agent like Crestview Law can provide a number of benefits. Most importantly for many, it helps keep your personal information out of the public record. Additionally, it takes a burden and responsibility off of your plate and onto the plate of a legal professional, with whom you can forge a strong relationship.

Please contact Crestview Law to schedule a free initial consultation to find out more.

Crestview Law has physical offices in Wenatchee, but we can serve clients throughout Washington with our many virtual tools.