Most business owners know that having a registered agent is a good idea, but a lot of people aren’t aware that registered agents are absolutely necessary if you own an Iowa LLC, Iowa corporation, Iowa sole proprietorship or other type of business entity.
Iowa registered agents play a pivotal role in the formation process, and it’s practically impossible to establish your business without one. They’re also helpful when it comes to keeping your business in line with compliance regulations by reminding you about filing deadlines (like your annual report) with the Iowa Secretary of State Business Services Division.
But what exactly is a registered agent, how do you find one, and why is it necessary for your business?
What Is a Registered Agent in Iowa?
An Iowa registered agent is an individual or business entity who is present at your business address or registered office and is available to accept legal documents, service of process, and certified mail on behalf of your Iowa business during regular business hours.
It probably sounds a bit impractical to have your business’s mail sent to another person at another address. But that’s where the other aspect of registered agent services comes in: mail forwarding and online document management systems.
Both of these service features keep you abreast of important correspondence sent to your business. Many of the top registered agent services also issue compliance alerts or annual report reminders so that you’re able to meet deadlines with the Iowa Secretary of State Business Services Division.
If your company is a registered business entity (an Iowa LLC, sole proprietorship, or corporation), then by law it’s required to maintain a registered agent in Iowa as well as any state it operates in. It’s a nationwide requirement If you conduct business in more than one state, you’ll have to either designate someone at these locations or hire a registered agent service to meet this legal obligation.
Sometimes, an Iowa registered agent is referred to as a resident agent or statutory agent. All three terms refer to the same business service.
What Is the Purpose of a Registered Agent in Iowa?
After reading the definition of a registered agent, it’s probably tempting to set up a PO box for your company and check it regularly for official correspondence. But that won’t meet your legal obligations for a registered agent in Iowa, and here’s why:
An Iowa registered agent is required to use a physical street address as their registered office address. Your business address or registered office address cannot be a PO box. Besides that, there are lots of other services that an Iowa registered agent service provides.
Compliance
Trying to remember all of your company’s compliance filing dates is a real hassle. Fortunately, this is one of the services that your registered agent in Iowa is in charge of handling. They accomplish this by sending compliance alerts about your deadlines.
Think of your Iowa registered agent as a broker between you and various government agencies. One of its main duties as an intermediary is to notify you about compliance deadlines with the Secretary of State. This not only prevents you from forgetting and missing the deadlines, but also prevents your company from dealing with the dreadful results of missing important government correspondence, such as losing your good-standing status.
Management of Important Documents
Meeting the requirement of a physical street address or physical office isn’t the only reason your registered office address is important.
Your business address is where legal documents, service of process, and mail will be sent, and since you obviously need to receive these documents, organize and store them, sending them to a reliable address is crucial.
Because of this, many of the best Iowa registered agent services offer online document management systems to which they scan and upload your business documents and you can view, manage, and store them using an online account. This method of document delivery is not only more convenient than basic mail forwarding because it provides you with a way to store them, you’ll also receive them much more quickly.
Who Can Be a Registered Agent in Iowa?
There are a set of nearly universal requirements for registered agents across the country. Here are some of the requirements your registered agent in Iowa or Iowa registered agent service will need to meet:
- State laws. Some states have laws specifically pertaining to registered agents. You’ll need to brush up on Iowa state law to make sure your Iowa registered agent meets all the requirements of the state.
- 18+ years old. Your registered agent in Iowa must be at least 18 years old.
- Physical address. Your registered agent’s address must be a physical address, which means that you can’t use a PO box.
- Who you can designate. If they meet the other requirements, you can designate anyone you want as your registered agent in Iowa—a friend, family member, employee, or even your lawyer. But make sure that whoever you choose is available during business hours to perform their duties, and that they’re trustworthy.
What Happens If My Business Operates Without a Registered Agent?
If your Iowa registered agent, statutory agent, or resident agent isn’t present at your company’s address during normal business hours when a process server attempts to deliver service of process, the process server will likely deliver the service of process to the Iowa Secretary of State.
When this happens, the Secretary of State has this important legal notice, and you don’t, which means you’re unaware of your legal issues. The court can proceed with the case without your knowledge, presence, or defense.
Because not maintaining an Iowa registered agent or meeting compliance deadlines is illegal for any business entity, the Secretary of State could rescind your company’s good-standing status. This can cause all sorts of legal and financial problems for your business. Your business will no longer be eligible for business loans, it won’t be permitted to expand to other states, and it may not be authorized to conduct business in Iowa.
Owners of limited liability companies can be uniquely affected by the revocation of the company’s good-standing status. Without an LLC certificate of good-standing status, your LLC could experience what’s known as administrative dissolution by the Iowa Secretary of State. This refers to the automatic, forced dissolution of a limited liability company by government agencies as the result of noncompliance of compliance or other legal obligations.
If your company is dissolved, it no longer has the legal right to use its name in Iowa. This means that it’s released to other companies and that they can quickly nab it to use for themselves. Even if you move quickly to restore the good-standing status of your company, it’s possible that it could still permanently lose its business name.
Choosing to continue normal business operations after the LLC has been dissolved is risky too. Without the safety net of liability protection, the owners of the LLC are liable for the business in the event that it’s sued. Their personal and financial assets are on the line too.
LLCs aren’t the only type of business entity that are at risk of experiencing these ruinous circumstances after losing their good-standing status. Corporations, sole proprietorships, and other business organizations that fail to maintain an Iowa registered agent are also vulnerable to many of the circumstances I’ve listed here.
Can I Be My Own Registered Agent in Iowa?
There’s not one state in the US that explicitly forbids you from being your own registered agent, but that doesn’t mean you should rush off to do so. Before you make the decision, you should learn about the pros and cons of being your own Iowa registered agent instead of hiring a professional registered agent service.
Cons of Being Your Own Registered Agent
Liability
Notably, the biggest downside of being your own agent is the serious repercussions of missing a service of process. You could lose your company’s good-standing status, and legal proceedings could take place without your knowledge or defense. Of course, none of this is good for your Iowa business.
Lack of Privacy
Any business owner who chooses to be their own registered agent must list their personal information on the public record. This isn’t the best option. Hackers and cybercriminals have access to this information and can use it for various cybercrimes, such as identity theft.
Plus, it’s just really creepy to think that everyone who has access to the internet also has access to your name, home address, email address, phone number, and more. Why would anyone willingly dox themselves?
Time
One major headache that comes from being your own agent is the time-consuming nature of the job—especially when it’s coupled with business ownership. You see, being an Iowa registered agent and being a business owner are both very time-consuming jobs. Most business owners don’t have enough time to do both.
It usually doesn’t occur to business owners that to be an Iowa registered agent, you must be available during business hours to accept service of process and mail for your company. But it’s pretty likely that your business also operates during these same hours. This creates a massive problem and makes it nearly impossible to properly run your business while also performing registered agent duties—you can’t be in two places at once.
Pros of Being Your Own Registered Agent
There’s really only one positive aspect of being your own registered agent, and it’s this: you won’t have to pay fees for Iowa registered agent services.
The thing is, being your own registered agent is risky and time consuming. Most business owners are happy to pay the fees for convenience and peace of mind.
Besides, most registered agent services aren’t expensive.
Should I Use a Registered Agent Service?
The reasons to choose an Iowa registered agent service are clear. Here are just a few:
- You won’t miss compliance filing deadlines with the Secretary of State, thanks to compliance notifications.
- Because someone is available to receive service of process and mail for your business, it’s less likely the Secretary of State will revoke its good-standing status, or that a default judgment will be issued against your company.
- Because you won’t be working two jobs—performing Iowa registered agent duties and running your business—you’ll be free to run your business and you can breathe easy without all the added stress of also being your own agent.
- A company conducting business in other states (like a foreign LLC or corporation) can meet its legal obligations easily with a national registered agent service.
- Any business that doesn’t have normal business hours (like dance clubs, restaurants, or gas stations) can benefit from an Iowa registered agent service because it keeps them from running the business at night and staying up all day to perform registered agent duties as well. Everyone needs some time off!
- A registered agent service helps businesses without physical locations meet the stipulations of a physical address, while also keeping their information off the public record.
- The annoying volume of junk mail that’s sent to businesses every day will be sent to your home address if you’re your own agent. You’ll also have to go through it all and toss it. An Iowa registered agent service handles junk mail for you.
- You can choose a registered agent service with premium services, like identity theft protection or payment of state fees.
- Some Iowa registered agents also provide business or LLC formation services, and you can take advantage of these by choosing bundles, some of which include a year of registered agent service free when you sign up for LLC formation services.
It’s up to you and you alone to hire a registered agent service. But while we’re here I feel like it’s worth stating that I always recommend new businesses use registered agent services.
What Is the Best Registered Agent Service?
Lots of different factors go into choosing the best registered agent service. Here are some of the different considerations you should look at when determining the best registered agent service for your business.
Service Features
Why bother choosing a registered agent that doesn’t offer the services your business needs?
Some agents have online document management systems that alert you about important legal notices and give you a place to store your legal documents. Others only supply basic mail forwarding.
Some providers have worry-free compliance and issue compliance alerts for important filing deadlines. Others simply give you a compliance calendar with important filing deadlines filled in, which can be easily forgotten or lost.
With so many Iowa registered agents who have full service catalogs, I see no reason to settle.
Value
A good way to figure out whether a registered agent is worth your time is to consider the company’s service list along with its price. Does it have loads of services and a low price, or is its service list lackluster with an unreasonable price?
While you’re here, I feel I should warn you to avoid “budget agents.” These dubious companies use start-up prices as low as $39–$59 to hook new customers and then charge absurd additional fees for any basic service beyond the typical street address or registered office and keeping private information off the public record. Some of the things these providers are charging extra for include necessities like compliance alerts or online document management systems. So, definitely stay away from “budget agents” for the good of your company!
Easy Sign-Up
You’ve likely never pleasantly mused on how much you appreciated a company wasting your time, and neither has anyone else. But some registered agent companies in Iowa require you to fill out tons of paperwork, making the process can take weeks, or even months, to complete. To prevent some frustration and impatience, choose a registered agent service with an automated and speedy sign-up process.
User-Friendly Interface
Think of how frustrating it would be to have a frequently used system that’s slow, full of bugs and crashes all the time, with an interface that’s difficult to navigate. That’s the reality of many registered agent systems. Because of this, you should make sure that your registered agent’s system is streamlined and user-friendly.
Customer Service
You can choose a registered agent service that scores well in all the factors I’ve listed here, but because it uses technology for its system, you’ll inevitably encounter a technical issue or have a question about your services. And because your registered agent service is such a vital business service, having competent, helpful, and friendly customer service agents is crucial.
I used all five of these rating factors as well as a four-stage investigative process I developed and determined that Northwest Registered Agent is the best registered agent service. If you’d like to learn more about registered agent services or how to choose your company’s registered agent, read my guide on the best registered agent services.
Conclusion
Each new business owner faces an overload of information they’re expected to learn: laws and regulations, industry-specific software and equipment, business and legal terminology, and even the latest in business management techniques. They’re also required by law to keep track of compliance filing deadlines, which aren’t as easily remembered as you’d think. But registered agent services exist to take some of the sting out of business ownership.
If you haven’t yet chosen a business structure and would like to learn more about LLC formation, click here to read my guide on how to start an LLC. If you’d like a bit of additional support throughout the formation process, read my guide on the best LLC formation services.
Iowa Registered Agent FAQs
What’s the Difference Between a Commercial and a Noncommercial Registered Agent?
The difference between commercial registered agents and noncommercial registered agents was laid out in the Model Registered Agents Act, which was created by the American Bar Association to provide a set of universal regulations for registered agents in the United States.
A commercial registered agent is any agent that registers with the Secretary of State as a commercial registered agent service. Some states require that all professional agents register as commercial agents.
A nonprofessional registered agent is any individual or business entity (in states that allow businesses to be noncommercial agents) that hasn’t registered with the Secretary of State as a commercial registered agent. If you’ve named a family member as your registered agent, then your Aunt Betty or Grandpa Lou is also considered a noncommercial registered agent.
How Do I Change the Registered Agent for My LLC?
It’s easy to change your current registered agent in Iowa. All you have to do is fill out what is known as a Change of Registered Office and/or Registered Agent Form with your new registered agent information and submit it. In most cases, state fees aren’t required to file this form.
How Much Does a Registered Agent Cost?
Your registered agent cost is dependent on a number of factors, like which provider you choose and the types of services your company needs. In general though, registered agent services cost between $39–$299 per state, per year. If you’d like to learn more about registered agent pricing, read my guide to the best registered agent services.
