All formal business entities, including LLCs and corporations, must have a registered agent. Typically, it’s an individual over 18 years old or a company authorized to do business in the state where the entity is registered.
While you can designate someone within your business as your registered agent, it’s best to use a professional registered agent service. They’ll keep your information private, be available during normal business hours and promptly relay legal documents to you.
What Is a Registered Agent?
In most states, the law requires that active companies and business entities appoint a registered agent to receive service of process notices, government correspondence, compliance-related documents, or lawsuits. The person or company designated as the registered agent must be able to accept delivery of these documents at the physical address provided.
The registered agent can be an individual resident in the state of registration or a business entity that is authorized to do business in the state. Many businesses appoint themselves or another officer, director, employee, or lawyer as their registered agent. Others choose a professional registered agent service like CT Corporation to fulfill this important business requirement.
If a business is expanding into other states, choosing a national registered agent that recognizes your business will help make it easier. The registered agent’s name and address is public information and appears in the registration records for each state where you do business. The registered agent also receives legal and tax documents on behalf of your business.
What Are the Requirements for a Registered Agent?
Choosing a registered agent is one of the first and most important decisions you make for your company. It’s a legal requirement for any LLC or corporation. It’s essential that your chosen registered agent is reliable and will be able to receive service of process notices and other time-sensitive documents on your behalf.
If your business is sued, you want to be notified immediately. In my experience, If you do not, a default judgment could be issued against your company. Your registered agent must be available during business hours to receive these types of documents.
If you are planning to expand into other states, it’s a good idea to select a professional registered agent that offers service in all 50 states. This can save you time and money as you avoid paying for separate services in each state. In addition to statutory duties, many professional registered agents also provide other beneficial services for businesses, such as document retrieval and storage.
What is the Role of a Registered Agent?
When you hire a professional registered agent service, it will fulfill a variety of important statutory duties on behalf of your business. These services will forward official correspondence to you, and will also ensure that hand-delivered legal documents get your attention promptly.
You can choose to designate yourself as an LLC’s or corporation’s registered agent, but it comes with some risks. First, your address will become public record and you’ll get a lot of junk mail. Second, you’ll have to keep up with the state laws for changing your address. A registered agent service can do that for you, and it’s much less expensive.
The main role of a registered agent is to receive service of process notices, government correspondence, and compliance-related documents on behalf of a business entity. If it fails in this duty, a company may face fines or loss of business opportunities. For these reasons, more business and legal professionals consistently trust CT Corporation to meet their registered agent needs.
How Do I Become a Registered Agent?
Usually, the person serving as registered agent must be a citizen of that state. They must also have a physical address (not a P.O. box) and be available during business hours to receive documents. They cannot be a corporation or LLC.
The address of a registered agent must be listed in any corporate filings or registrations with the Secretary of State. It is also a public record, meaning anyone can find it. It may be inconvenient for a business owner to be their own registered agent, as it would require being present at that address during normal business hours every day.
Additionally, the information of a registered agent is often published in public records, which can lead to unwanted junk mail and potential privacy issues. For these reasons, many companies choose to use a commercial registered agent service. Many of these services, such as LegalZoom and Rocket Lawyer, are less expensive than hiring an attorney or a member of the company’s own staff to serve as registered agent.
Steven Barron is an expert in many fields like tech, education, travel, finance, games, cars, and sports. He started his career in the tech industry, where he learned a lot and got good at spotting tech trends. Steven then moved into writing. He loves technology and is great at telling stories. His articles cover topics like new gadgets, education, and finance. They are full of detail but easy to read. Steven loves to travel and is a big sports fan. This shows in his travel and sports writing, where he draws in readers with clear descriptions and smart insights.
