The gaming industry is the fastest-growing entertainment sector in the world. The innovations in computer, console, and app gaming, along with the explosion of eSports, have made it one of the most dynamic and agile industries for new startups. In the US, the number of video game businesses reached over 47,000 in 2023. For those looking to develop their own gaming company, the legal side of the industry is one of the most important aspects during the development and running of the company. This is especially true today, as game developers have more options to monetize and market their games, which in turn means more legal options to comply with, including taxes, corporate filing notifications, and potential lawsuits, all of which are known as service of process. The persons who will receive the service of process are known as registered agents. This article will examine why registered agents are important for gaming companies and how to find one.
Which Gaming Companies Need a Registered Agent
In the US, all companies must employ a registered agent to accept the service of process on behalf of the business if they become an LLC, limited partnership, or corporation. Companies that don’t have a registered agent won’t be allowed to register their company, and it could ultimately be shut down. However, if the gaming company is a sole proprietor or general partnership, they are not legally required to use a registered agent. Due to the overly crowded and saturated industry, a company that is in the beginning stage of growing a Mobile Game App will likely start as a sole proprietor as they test the game before becoming an LLC. Due to the legal requirements (see below), it is recommended that gaming companies form an LLC, limited partnership, or corporation to protect themselves.
Why a Registered Agent is Important for Gaming Companies
Creating a gaming company involves a lot of legal issues and papers that need to be kept to avoid any fines or lawsuits. The most common legal requirements are copyright protection, data privacy, distribution regulations, and licensing agreements from third parties. With the evolution of blockchain on Web3, more gaming companies are developing games that incorporate cryptocurrency technology to create more immersive experiences. To accept cryptocurrency and NFT payments, these companies must follow the latest local regulations around blockchain and decentralized networks. Each of these areas requires a lot of legal paperwork to be filled and responded to.
The registered agent is responsible for forwarding any mail from the official office address on file to you or your attorney and acts on their behalf. They will also be able to scan and store legal documents and provide annual report reminders. An experienced agent will streamline the operations of a gaming company, whether they are in the development stage or are selling new content, to ensure that every legal issue that needs to be addressed is not delayed or lost due to poor organization.
Finding a Registered Agent
With the gaming industry increasing every year, more states are offering unique benefits to attract gaming companies. Along with the incentives, this means that the company will need to find a dedicated registered agent in that state to operate. The location of your registered agent is something that needs to be taken into consideration, as each state may have slightly different requirements and benefits. Texas is fast becoming a top gaming destination, with video game projects eligible for a cash grant of up to 22.5% if the project follows certain qualifications, such as 60% of the workforce being in Texas. The requirements are straightforward if you are wondering how to find the best registered agent in Texas. The agent must maintain a physical address in Texas, be over 18 years old, and be available from regular business hours from 9 AM-5 PM. California is another popular location for game developers as it has one of the biggest gaming industries in the country.
It is home to video game publishers and developers Activision Blizzard, Riot Games, Electronic Arts, and Naughty Dog. Due to California being world-renowned as a tech hub, particularly Silicon Valley, gaming companies have access to incubators and accelerators that can help provide the funding and expertise to get their games off the ground. This makes it one of the best and most competitive places to start a gaming company.
If using a registered agent in the state of California, it is also required that they have an address that isn’t a PO Box. The registered agent can be an employee or owner of a company but do note that the company itself cannot serve as its registered agent.
If you are looking to start a gaming company, the above article shows why it is very important that you get a registered agent.