Texas is a great state to set up your business. It’s one of the best business environments in the US. If you plan on setting up a business in the State of Texas, one of the foremost requirements of the state government is having a registered agent.
What is a Registered Agent?
A registered agent can be a business or an individual appointed to receive legal documents for your company. These legal documents include tax notices, subpoenas, lawsuits, and others.
All companies doing business in the state of Texas must have a registered agent to ensure tracking of all legal mail sent within the state. To become a registered agent in the state of Texas, you must meet the following requirements:
You must
- Be able to receive mail during business hours at an office
- Be present to receive the legal mail intended for the business you represent
- Have a physical address within Texas. Note that making use of a P.O Box is not allowed.
Registered Agent in Texas, who can work as one?
A person must meet certain requirements before he/she can work as a registered agent in Texas. These requirements are made by the Secretary of the State of Texas.
- A registered agent can be an employee of the company or third parties such as lawyers and registered agent service companies that is a resident or an organization that is located in Texas and has a valid street address in Texas. Corporations and limited liability companies (LLCs) cannot be their registered agents. However, if you are a resident and of legal age (more than 18) in Texas, you are allowed to register as your business’s registered agent in a case whereby you have a start-up business or you are a small business entrepreneur.
- If you are a business owner based outside Texas, you must first have the authorization to do business.
Changing your Registered Agent in Texas
If you have decided to shift to another agency or entity to represent your company in Texas, maybe because your previous registered agent moved out of the state, no longer wants the responsibility, or he left your company for another. Changing registered agents is easy, all you need to do is follow the following steps, as outlined by the Secretary of the State of Texas:
- File the Form 401-Change of Registered Office or Registered Agent or Both either online through the Texas State Online Services webpage aka SOSDirect or you can download the form and print on a paper, complete the form and submit alongside the necessary payment.
- The document you’ll fill online has step-by-step instructions on how to complete the form. The form must be correctly filled as expected of you to avoid complications in your filing. You can submit the document online, through the mail, through Fax, and in person.
Note that there’s a fee of 15 dollars that must be paid for the document to be processed. The payment can be made through a Card, money order, or a check that is made payable to the “Texas Secretary of State”.
If you’re submitting through the mail, the document and the check will be mailed to the address:
P.O. Box 13697,
Austin, Texas
78711-3697.
If you choose to fax the document and payment, fax it to (512) 463-5709. Faxed documents must include a copy of credit card payment information; Form 807 to process the payment.
You can also choose to submit it in person to the address:
James Earl Rudder Office Building at 1019 Brazos St.,
Austin, Texas
78701.
You have to know that you cannot change your registered agent in the State of Texas by just making changes to your annual reports or your Certificate of Formation. You can only follow the process explained above.
Should I Get a Professional Registered Agent Service Company?
Getting a professional registered agent company can reduce a lot of effort and time for any business owner. There are numerous benefits to it whether you are an established company or a small business owner. Some of these benefits are:
- Making use of their address instead of your home address, especially if you don’t have an office yet. This detail will be included in public records.
- Registered Agent processes paperwork for you
- Notify you immediately if you receive any new legal mail
- Notify you of mandatory filing of Texas annual reports
- Help you to avoid penalties for delayed filings
- Assist you with forms and instructions needed to set up your business
- If you operate a small business out of state, they fill in as your local contact in the state.
Several agencies offer registered agent services in Texas. However, you have to be careful in finding a trustworthy agent to handle your business.
Advantages of Using a Texas Business Address vs. Personal Address
- A business address minimizes exposure of your home address as public information
- Some city municipalities may not allow using home addresses as business offices
- Using your personal address can probably link you to business liabilities
- Using a business address can help you separate business and personal transactions
Conclusion
Having a registered agent is your gateway to setting up a business in the state of Texas. Doing it yourself is possible, but it can eat up a lot of your time, money, and energy. It is better to get a registered agent service and use the resources to build your business instead. Let them help you do business hassle-free in Texas.
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