Can a CPA Be a Registered Agent?

It’s important to understand, however, that acting as a Registered Agent comes with significant responsibility, as you must be consistently available during normal business hours to receive and process time-sensitive legal documents for clients.  Many CPAs are attracted to the ideas of better serving their clients and generating additional income by acting as a registered agent,  but aren’t willing to commit to the added responsibilities the job would bring.

In those cases, partnering with a commercial Registered Agent service can be a smart option. Doing so allows CPAs to extend additional services to their clients without carrying the full liability and administrative burdens themselves. Let’s have a closer look at how a CPA can offer registered agent services without increasing their own workload, encountering additional operating expenses, or even meeting certain state requirements pertaining to registered agents. We’ll also explore the benefits that expanding your service offerings can have for both you and your clients, the purpose and responsibilities of a Registered Agent, and some steps you’d have to take to become one.

Benefits of a CPA Acting as a Registered Agent

Some CPAs choose to provide registered agent services to better serve clients with whom they have established relationships. Many business owners welcome the opportunity to work with someone they know and trust in the role of registered agent because they are confident that important legal documents will be properly handled and processed.

Acting as a CPA and a registered agent can help retain clients and attract new clients who value the convenience of this dual role. And a client who benefits from dual professional services is likely to recommend the provider to others.

Another important reason that a CPA would want to become a registered agent is to, as mentioned, generate additional revenue for their practice. As a CPA, it’s likely that you understand the challenges of increasing your revenue when much of your income potential is linked to billable time. There are, after all, only so many hours in a day. Partnering with a commercial registered agent such as CorpNet enables you to offer additional services to clients without having to increase overhead costs or expand your work hours – providing a pathway for financial growth.

And, because remaining in compliance is vitally important for every business, a CPA who becomes a registered agent creates added value for clients by helping keep their businesses in compliance, a service that can create good will and increase trust and loyalty.

Adding Registered Agent Services to Your CPA Business Offerings

Every company that registers as a Corporation, Limited Liability Company (LLC), or other business that’s registered with the state must name a registered agent when submitting its Articles of Organization or Articles of Incorporation. Companies that conduct business in more than one state must have a registered agent in each one.

While a business that’s registered with the state must name an agent when filing its initial paperwork, business owners can later change their registered agent by filing a certificate of change or change of amendment with the Secretary of State.

The primary role of a registered agent is to receive legal correspondence and other important documents on behalf of a business. That means the agent must be available during regular business hours and must have a physical address, not a P.O. box or online address, in the same state. The agent must forward all correspondence to business owners in a timely manner. Basically, a registered agent serves as the official point of contact between a business and the state.

While an agent’s duties may not sound extensive, they are important to every business, as this management of legal documents and other important paperwork is vital to ensuring a company is able to respond promptly and remain in compliance with state regulations.

Regulations regarding registered agents vary depending on your state, so be sure to verify what rules pertain to you and your firm. In addition to meeting the requirements mentioned in the previous paragraph, the following guidelines normally apply:

• A registered agent must be legally authorized to conduct business in the state where a client’s business is registered.
• An individual must be at least 18 years of age to serve as a registered agent.
• The registered agent must be a resident of the state in which they’ll serve.

The process of becoming a registered agent varies from state to state, but generally, you can expect to follow these steps:

• Assure you meet eligibility requirements by having a physical address in each state where your client conducts business and someone available during regular office hours at each location to accept legal correspondence.
• Clarify with clients that they wish to have you provide registered agent services and obtain their explicit permission to act as their agent. You and the client may have to complete a formal agreement and submit it to the state.
• File an application with the state, if required, completing any necessary forms or other paperwork.
• Pay any necessary fees for serving as a registered agent as required by the state.
• Remain in compliance with state regulations for registered agents by forwarding all legal correspondence to clients in a timely manner and updating information regarding your firm, as necessary.

Creating a Win-Win for You and Your Clients

Maybe the prospect of expanding your business to offer registered agent services for clients sounds appealing and you have clients who you’re certain would benefit from those services, but you’re hesitant about the additional responsibilities that serving as an agent would entail. If that’s the case, there’s a simple solution.

Many CPAs partner with a commercial agent, such as CorpNet, to help manage registered agent responsibilities and other client advisory services for them. This enables you to offer those services to clients without encountering extra work or responsibilities associated with them.

For instance, CorpNet can provide a portal that helps you automate and manage alerts pertaining to your clients’ needs or give you access to its white-label products and services. You’ll receive personalized support from a dedicated account manager, as needed, and any help you might need with handling official documents and making sure your clients remain in compliance.

Partnering with CorpNet to provide registered agent services can work in a couple of ways. We offer a white label reseller agreement, in which we are responsible for receiving and managing any documents that are pertinent to your client. That means CorpNet essentially serves as the registered agent and bears the responsibility for having an address in the state of the business’s formation, being available during normal business hours, and so forth.

We receive your clients’ documents, then upload them to your personalized dashboard, enabling you to forward the correspondence to your client. You get the benefits of offering registered agent services to your client without needing to meet the requirements for agents and without the responsibility of being available to receive correspondence. Basically, our services are white labeled, enabling you to offer them as your own at whatever rate you decide.

We also offer a partner program in which we can deal directly with the clients you’ve contracted with to provide registered agent services, relieving you of that responsibility.

These partner programs enable you to benefit from providing registered agent services for your clients without encountering additional work that could force you to increase your hours or add staff. You can increase revenue, enhance client trust, and provide additional services for clients, simply by enabling us to do the work for you. To learn more about client advisory services that  CPAs and accounting firms can offer through one of CorpNet’s partnership programs, check out Client Advisory Services: What Top Accounting Firms Offer.

Expanding your services to include those of a registered agent can be extremely beneficial to a CPA, as it can maximize your value to clients, expand your client base, and create an additional revenue stream for your business. If becoming a registered agent appeals to you, make sure you meet all state requirements for doing so and understand the responsibilities involved with the job. If your goal is to partner with a company that can help you serve your clients in this role without adding to your workload, contact a commercial agent such as CorpNet to learn more.

Helpful Educational Articles

• • What is a Registered Agent?
  • What is a Commercial Registered Agent?
  • Noncommercial vs. Commercial Registered Agent
  • Can You Use a UPS Store or PO Box for a Registered Agent?
  • Registered Agent Options for Non-Citizens
  • What Is an Agent for Service of Process?
  • What is a BOC-3 Process Agent?
  • What Is a Statutory Agent?
  • What is a Registered Office?