Whether you own a limited liability company (LLC), sole proprietorship, or corporation, an Alaska registered agent is a business service that’s vital to your company’s success.
Alaska registered agents are a big part of the formation process and make compliance a breeze for your company.
But what is a registered agent, what does one do, and does your business actually need one?
What Is a Registered Agent in Alaska?
An Alaska registered agent is a person or business that is physically present at your listed business address to receive service of process and accept legal documents and certified mail from government agencies, such as the Alaska Division of Corporations, on behalf of your business entity during normal business hours.
Certainly, it’s of no use to you for your Alaska registered agent to simply receive your legal mail and service of process if you don’t also receive the information. That’s why the second half of a registered agent’s duties involves mail forwarding and other services to make sure that you’re notified about important legal correspondence and compliance deadlines (like your biennial report).
Some people refer to an Alaska registered agent as a statutory agent or resident agent, so if you see these terms elsewhere, you’ll know that they all mean the same thing.
Registered agents are required for any business that registers itself as a business entity in all 50 states. Business entities conducting business in multiple states are required to maintain registered agents in each state they conduct business in as well. In these instances, it’s a good idea to either designate a person who’s present at these locations to be the registered agent, or hire a professional registered agent service to do the job.
What Is the Purpose of a Registered Agent in Alaska?
By now, you’re probably wondering why you need an Alaska registered agent if all they do is receive mail, service of process, and documents on your company’s behalf, provide you with a registered agent’s address to list on formation documents, and provide mail forwarding. Couldn’t you just get a PO box for your business and check it regularly to save yourself some trouble? In short, no. You must list a street address as your registered agent address, so using a PO box isn’t an option, and receiving mail for your company is only one service that your Alaska registered agent is expected to provide. Here are some of the other services that makes an Alaska registered agent a valuable service for businesses:
Compliance
A registered agent in Alaska ensures that your business meets its compliance requirements as defined by the Alaska Division of Corporations. It accomplishes this by providing compliance notifications or biennial report reminders.
A simple explanation of an Alaska registered agent is that it functions as a go-between between you and various government agencies (like the IRS and the Alaska Division of Corporations). It ensures that you’re notified about important correspondence and legal notices so that you can respond to them quickly and file your biennial or annual reports on time. When you designate a registered agent in Alaska, you’re guaranteed to know about problems so you can deal with them quickly.
Management of Important Documents
It can be troublesome for business owners who operate out of their home or have no dedicated physical business address, especially since you can’t list a PO box as your Alaska state mailing address. Your registered agent address is where all your important mail and services of process will be sent. The best Alaska registered agent services scan and upload your documents to an online portal and allow you to access them with an online account, which means you’ll get them even faster than if you had to wait on basic mail forwarding to receive them. Accessing an online portal of business documents is much simpler than separating your personal mail from your business mail at home.
Who Can Be a Registered Agent in Alaska?
A few universal requirements apply to registered agents in every state. These are some of the requirements that every Alaska registered agent or Alaska registered agent service must meet:
- Physical address. Your registered agent is required to list a physical address, as well as being present at the mailing address you list on your formation documents during normal business hours. There are two important pieces of information in this definition that you need to understand: your Alaska registered agent can’t use a PO box address because registered agents are required to use a physical street address, and your registered agent’s address has to be in the state of Alaska.
- 18+ years. Your Alaska registered agent must be 18 years of age or older.
- Who you can designate. You’re allowed to designate anyone as the registered agent for your company. This includes family members or friends, employees, or even your lawyer. Remember, your Alaska registered agent must be present and available to receive service of process and legal documents on behalf of your company during business hours. Because of this, many business owners choose to hire Alaska registered agent services.
- State laws. Several states have laws that specifically pertain to registered agents. To ensure that you’re complying with state laws, you should brush up on the regulations for Alaska registered agents.
What Happens If My Business Operates Without a Registered Agent?
Every company that’s registered as a business entity is required to have a registered agent in Alaska—any company registered as an Alaska LLC, corporation, or sole proprietorship. This rule isn’t exclusive to Alaska, but exists in all 50 states.
Limited liability companies and businesses that operate in other states are required to maintain a registered agent in each state they conduct business in, which means you’ll either need to designate someone there as your registered agent or hire a registered agent service.
Because a registered agent in Alaska must be present and available at your business address during standard business hours to receive service of process and mail on your company’s behalf, if you don’t list your registered agent’s address or you fail to designate a registered agent in Alaska for your business, you might miss important documents or notices.
If a process server goes to your company’s business address several times and isn’t able to deliver service of process there, they may deliver it to the Alaska Division of Corporations instead in a far flung attempt to reach you. There are a lot of consequences that your company could face for this, one of which is the Division of Corporations proceeding with legal actions against your company, without you even knowing, and issuing a default judgment against it.
If you don’t maintain a registered agent in Alaska or keep up with your compliance obligations (like filing annual reports or paying your taxes) then your company’s good-standing status could be revoked, which would bar it from legally conducting business in the state. Furthermore, companies without the good-standing status can’t expand to other states, and may not be eligible for business loans.
One of the most dire outcomes for a company that finds itself without its good-standing status is the automatic dissolution of your Alaska LLC. An LLC that’s been dissolved forfeits its rights to its name in the state, which means that other businesses could use it instead. Even if you quickly remedy this dissolution situation, your company may lose the legal right to use its name—permanently.
Once an LLC has been dissolved, there are a lot of risks associated with conducting business. The business owners are held liable for the company if they operate without legal recognition of their LLC. So each business owner or LLC member risks their personal information being on public record, and their personal assets become vulnerable to lawsuits.
Unfortunately, these legal and financial problems aren’t limited to LLCs. All business entities (corporations, sole proprietorships, etc.) are subject to these ramifications if they fail to designate a registered agent.
Can I Be My Own Registered Agent in Alaska?
All 50 states allow you to be your own registered agent. This means that you’re perfectly allowed to be your own registered agent in the state of Alaska. But before you decide to do so, you should learn about the pros and cons of supplying your own registered agent services.
Cons of Being Your Own Registered Agent
Liability
The biggest drawback of being your own registered agent instead of hiring an Alaska registered agent service is the fact that if you miss an important notice or piece of mail, the result could be drastic. If you miss a service of process, a default judgment could be issued against your company without your knowledge, which means you won’t be able to defend your company in court. Instead, you’ll just have to abide by any ruling that’s issued.
Lack of Privacy
Another downside of being the registered agent for your company is that if you choose not to hire a registered agent service, and you have no separate business address, you’ll have to list your private address on your LLC formation documents. This is risky because aside from being a major invasion of personal privacy, it leaves your information prey to cybercriminals and identity theft.
Time
Registered agent duties are time consuming, but so is running a business. A registered agent must be present to receive documents and service of process during regular business hours. That last bit is important. Many people don’t realize that most businesses also operate during regular business hours, which means you can’t work or manage a business while also providing registered agent services for your company. Try as you might, you can’t be in two places at once.
Pros of Being Your Own Registered Agent
There’s really only one advantage of being your own registered agent: you won’t have to pay fees to a registered agent service. But many business owners agree that paying the fees for a registered agent service is a small price to pay for all the benefits it provides.
Should I Use a Registered Agent Service?
There are a lot of advantages to hiring an Alaska registered agent service:
- Guaranteed compliance notifications ensure your company remains in good standing and is legally allowed to conduct business in the state.
- Someone will always be available to accept official mail on your company’s behalf, thus maintaining your good standing status and minimizing the likelihood of lawsuits.
- You’ll be able to work and manage your company during its hours of operation, without worrying about how to simultaneously fulfill your obligations as the company’s registered agent. Companies that operate outside normal business hours can particularly benefit from a registered agent service.
- If your company operates in multiple states, hiring a registered agent service means you won’t have to perform the impossible task of making yourself available to receive mail in multiple states at the same time.
- A registered agent service is your best option if your company doesn’t have a physical address, or if you only have a PO box. This ensures that your company meets its legal requirements by having mail sent to a physical address, and that you can list your registered agent’s details on your LLC formation documents rather than your own.
- If you hire a registered agent service, you can list its name and address on your formation documents instead of your own, securing your information and privacy.
- You won’t have to deal with loads of junk mail. Businesses receive an absurd amount of junk mail, which you’ll have to deal with yourself if you choose to be your own registered agent. Hiring a registered agent service eliminates this hassle.
- You can choose a registered agent that provides premium services or formation services. Premium registered agents provide additional services, like specialty insurances and payment of any extra fees. Some companies also provide LLC formation service, with special promotions when you sign up for their formation packages, such as registered agent service free for the first year!
The decision to hire a registered agent service is ultimately yours, and you know your business and its needs better than anybody, but I always recommend that new businesses use registered agent services.
What Is the Best Registered Agent Service?
You must consider several important factors when choosing the best registered agent service for your business. Here are some of the most important things you should factor into your decision:
Service Features
It doesn’t make any sense to choose an Alaska registered agent service if it doesn’t provide the services your company needs. Some agents only issue a compliance calendar, while others issue compliance alerts. Some companies only scan and upload your documents to your online document management portal, while others will scan and upload every piece of mail.
Value
The true test of a good registered agent service is whether it provides a full range of services as well as a low price. To that end, avoid “budget agents.” They advertise low fees to get you to sign up with their bare-bones services, and then start piling up additional fees for services you definitely need, like compliance alerts and online document management systems. Steer clear of companies with these deceptive prices.
Easy Sign-Up
Some registered agents will waste your time during the sign-up process, taking days, or even weeks, while also requiring a ton of paperwork. Look instead for a registered agent company that has an easy sign-up process.
User-Friendly Interface
Your registered agent’s system is something you’ll use a lot, so it’s best to choose one with an interface that you can easily operate and navigate. Some companies have outdated systems with confusing navigation and layouts, and a multitude of technical issues and glitches. This is what you want to avoid.
Customer Service
It doesn’t matter how great a registered agent service is, you’ll eventually have questions that need answered or require assistance with a technical issue. And your registered agent service is vital to your company’s operation, which means that good customer service is a MUST.
I’ve conducted research using all these elements and determined that Northwest Registered Agent provides the best nationwide services you’ll find. To learn more about registered agent services and how to choose the best one, read my guide on the best registered agent services.
Conclusion
When you start a new business, you have to learn a lot of new information, like state laws and regulations, different business techniques, and legal terms used in the business industry. On top of all of that, business owners have to remember things like compliance filing deadlines. Registered agent services exist to ease some of the burden business owners carry. You won’t regret hiring a registered agent.
If you’re just starting out and you haven’t decided on the structure of your business yet, now is a good time to learn about all the available options available. If you’d like to learn more about LLC formation, read my guide on how to start an LLC. If you feel like you could use some extra support during the formation process, here are the best LLC formation services.
Alaska Registered Agent FAQs
What’s the Difference Between a Commercial and a Noncommercial Registered Agent?
While you’re doing research to find the right registered agent for you, you’ll likely see the words “commercial registered agent.” The difference between commercial and noncommercial agents is a simple one. Commercial registered agents are registered with government agencies in the state by filing a commercial registered agent statement. Some states require that registered agent services register as commercial registered agents. The distinction between commercial and noncommercial registered agents was laid out in the Model Registered Agents Act, in which the American Bar Association attempted to provide uniform, nationwide regulations for registered agents.
Noncommercial registered agents are any individual or business entity that isn’t registered with a government agency as a commercial registered agent. In states where registered agent services aren’t required to be registered, businesses can be noncommercial, as can everyday citizens who assume registered agent duties.
How Do I Change the Registered Agent for My LLC?
If you’re here because you aren’t satisfied with your registered agent’s services and have asked “Do I even need a registered agent,” the answer is yes. If your company is registered as a business entity, you’re required to maintain a registered agent.
Fortunately, changing your registered agent is pretty easy. All you have to do is file a Change of Registered Agent form with the Division of Corporations. You may be required to get your registered agent to sign a registered agent consent form and attach it along with this form, and you’ll be charged a filing fee.
How Much Does a Registered Agent Cost?
This depends on the services you choose, as well as the provider. In general, registered agent services cost between $39–$299 per state, per year. If you’d like to learn more about pricing, read my guide on the best registered agent services.
