Private Equity Interview Question:

Why is a registered agent needed for small businesses?

Submitted by: Murtaza

Owning your own small business is a 24/7 job. You work during the day, think about work at night, and probably even wake up mid-slumber to jot down a great new idea to improve your processes.
When you are a business owner and you are always working even if you are not at work.
But what happens if you or your business is served a summons, a lawsuit, or official state documents and you are not in? Business law dictates that you must, at all times, have a registered agent available to receive these documents during normal business hours.

This agent which can be a business or individual must be on hand to receive and sign for those documents. The idea is to make sure these processes (such as the receipt of tax documents or notice of a lawsuit) are as smooth as possible and to keep people from claiming the information got "lost in the mail."
That is why every business needs a registered agent. It is also why many businesses especially single-owner companies and smaller entities-often select a registered agent not on their premises.
Submitted by: Murtaza