Why Construction Companies Need an Official Registered Agent

By Jennifer Friedman

Construction business owners often face time and resource constraints. In a highly regulated industry with many documents and forms to file, in addition to tax and compliance deadlines, a registered agent can ease the burden of annual obligations on a business. It allows business owners to focus on securing job contracts and carrying out projects, freeing them from concerns that an important document or filing has been overlooked.

Stay On Track and In Good Standing

Signaling construction industry growth in much of the country, the Associated General Contractors of America reported that construction firms in 38 states and the District of Columbia have added jobs in the past year, but with that growth comes additional compliance responsibilities. A professional registered agent is a key resource to help prepare your business by handling important notices and filings from the state, such as annual report forms and also accepts notices related to lawsuits, ranging from contract disputes to wage garnishments. It helps your business maintain good standing which is key because it protects it from fines, potential license suspension and losing essential bids. Maintaining compliance as your company takes on more responsibility is critical. When you initially form your business, you must name a registered agent in your formation state. In some cases, the business owner may opt to serve as the registered agent. This can create problems because the registered agent must be available during business hours every week of the year. In addition, it can pose real problems for a contractor who is often out of the office on job sites. Having a professional registered agent means that important papers are received and delivered to you promptly.

Prepare Your Expanding Business

Did you know that a registered agent is required when you expand into other states? Businesses are required to have a registered agent that is a resident, with a physical address, in the state of incorporation. This means that an owner can seldom serve as a registered agent in the new state and is why enlisting a professional registered agent is a viable solution.  Plus, a professional registered agent can help track the compliance deadlines in the new state and make sure your compliance paperwork is handled properly. As your construction business grows, it’s important that you have processes in place to manage any legal disputes. When you have an official registered agent, the agent receives all lawsuits or summons directed to your business and will alert you of necessary actions you must take. Furthermore, construction companies often have to attain a multitude of industry-specific business licenses and renew them to stay in compliance. Without a registered agent, it can be easy to forget license renewal deadlines and enable competitors to report your business for suspension and penalties. A professional registered agent is an asset to your business and helps manage your ongoing compliance work, giving you the peace of mind to focus on your core business: construction.

Jennifer Friedman is the CMO of the small business segment of CTa Wolters Kluwer Company, which provides legal compliance solutions to the small-business community. In this role, she directs all activities related to digital marketing and advertising to help build the brand through innovation, partnerships, and enhancing the customer experience.

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