What Is a Registered Agent?
All formal business entities (LLCs and corporations) are required to designate a registered agent when they file their business registration or incorporation paperwork with the state. While an owner or employee can serve as the registered agent, professional registered agents offer several advantages.
They can keep your privacy by not listing your home address, have staff that is available during all business hours and can handle documents in multiple states.
Service of Process
Your registered agent is the point of contact where a lawsuit can be served on your business. It’s also the address where government correspondence and compliance-related documents are sent.
Most states require that you designate a registered agent when you form your business. You can do this yourself or use a professional service that meets your state’s requirements. Some states refer to this person as an “agent for service of process” while others use the term “statutory agent.”
Professional registered agents are companies in the business of providing this service. They keep your personal information private and guarantee that a person will be at their office during standard business hours to receive important papers on your behalf. They’ll then forward them to you or your business. They also have the experience and expertise to handle different state laws and filing deadlines. This is especially helpful for businesses that operate across the country or plan on expanding into other states.
Notices
A registered agent must be available to receive service of process and official mail on behalf of a business, even during vacations and out-of-office times. Having a third-party company act as your registered agent can ensure that legal documents and compliance notices don’t get lost in the shuffle of junk mail.
The person or business that is serving as your registered agent must be a resident of the state where you register to do business and have a physical address, not a P.O. box. They must also be able to accept delivery during normal business hours.
Choosing the right registered agent for your business is an important decision because it may be the only way to avoid costly and embarrassing lawsuits. If your company needs to change your registered agent, check with your state’s business filing agency for forms and fees. Some registered agents also provide additional services, like mail forwarding or compliance management reminders (like annual report filing deadlines). These extra services can help your business save time and money.
Taxes
Every state requires corporations and LLCs to maintain a registered agent. Usually, this is an individual resident within the state or a company authorized to do business in the state (also known as foreign qualification). A registered agent must be available during normal business hours to receive documents and service of process and must have a physical address that’s not a P.O. box or private rented mailbox.
It’s important to have a reliable registered agent, because without one you could miss time-sensitive documents, such as state filings or lawsuit notices. Also, if you’re operating in multiple states, it’s more convenient to have a national registered agent services provider who can manage your agent needs across all states instead of having to hire different services for each state. Plus, you can easily make renewal payments with one company.
Compliance
A registered agent is an individual or company designated by an active business entity to receive service of process notices, government correspondence, and annual report filing reminders on its behalf. It’s a requirement imposed by state law and, in many cases, if your company does business outside of its home state, you’re required to appoint a registered agent.
If you choose to act as your own registered agent, your address must be open during normal business hours so that you can be contacted. However, you can enlist the services of a professional registered agent company that is available to receive service of process documents and other important mail 365 days a year.
The plethora of benefits of choosing a professionally managed registered agent service include a reliable communication channel with the Secretary of State’s office, quality customer support, and the peace of mind that comes from knowing all your entity requirements are being handled by a seasoned, dedicated team.