A registered agent is an individual or business entity that’s present at your registered office address during business hours to accept legal documents, tax documents and mail on behalf of your company. You need an Ohio registered agent because every business entity in the state is required to maintain one, but a good registered agent service is also a boon to any business.
Registered agents have become a major component of the business formation process, and you may not even be able to complete it without listing your registered agent’s name and address on your formation documents. Since they’re a legal necessity, it’s nice that registered agents are quite useful when it comes to compliance, as well.
Keep reading to find out what a registered agent is, what job duties fall under this title, and why you need a registered agent in Ohio.
*In Ohio, a registered agent is also referred to as a statutory agent, service agent, or resident agent.*
Why Do You Need a Registered Agent in Ohio?
The Ohio Secretary of State stipulates that a registered agent must be physically present at your registered office address during business hours. And your registered agent’s address must be a physical address, so a PO box won’t cut it.
For more information about registered agents, read my article What Is a Registered Agent? For now, though, here are several things your Ohio registered agent can do for you!
Compliance
For many people, it isn’t easy to remember compliance filing deadlines. Your annual reports are due on the anniversary of your business’s establishment, every year. It’s your registered agent’s job to keep track of these dates for you.
Your registered agent in Ohio acts as an intermediary between your company and various government agencies, so when important compliance filing deadlines roll around, it’s their job to tell you about them. Some of the best Ohio registered agents issue compliance alerts, which can keep your Ohio business in favor with the Secretary of State.
Management of Important Documents
Your registered agent address is where your official correspondence and legal documents will be sent, so choosing a reliable business address is important.
Some Ohio registered agents or statutory agents provide online document-management systems. They scan and upload your mail and documents the day they receive them, so you can quickly access them using an online account. This means that if an issue pops up, you’ll be notified about it and be able to deal with it quickly.
They also provide you with an electronic storage system so that you can keep all your mail and documents in one place — no manila folders or filing cabinets necessary!
Service of Process
It’s not possible to explain registered agent services without broaching the subject of service of process. However, some articles you find online make it sound as if you’ll receive service of process several times a week, when that isn’t the case — or at least it shouldn’t be!
A service of process means that your company is being sued or otherwise involved in a lawsuit or court case, so that should be a rare occurrence. But in a scenario where your Ohio business is sued, your registered agent will accept service of process on your behalf and notify you accordingly.
Registered Agent Requirements
Most registered agent requirements are the same across the board nationwide. Here are some of the requirements your registered agent in Ohio will need to meet.
State Law in Ohio
You can ensure that your Ohio registered agent or statutory agent meets all of its requirements by brushing up on Ohio state laws regarding registered agents.
Physical Address in Ohio
Your registered agent’s address must be a street address in the state. This disqualifies PO boxes.
Who Can Be a Registered Agent in Ohio
Every statutory agent or registered agent in Ohio must be at least 18 years of age. As long as all the other legal requirements are satisfied, you’re allowed to designate anyone you want as your Ohio statutory agent — a friend, family member, trusted employee, or even your lawyer.
What Happens If My Business Operates Without a Registered Agent?
Missing a service of process is bad for your Ohio business because you’ll be completely unaware of the legal proceedings. A judge could issue a default judgment against your business or hold you in contempt for failing to respond to a subpoena.
It’s not legal for any business entity to operate without a registered agent in Ohio, so the Ohio Secretary of State can revoke your company’s good-standing status in this scenario, too. Then your company could lose its eligibility for business loans, no longer be permitted to expand to other states, and be prohibited from legally conducting business in the state.
And without your company’s good standing, the Secretary of State could dissolve your Ohio LLC through “administrative dissolution,” which means they can revoke your company’s legal ability to conduct business in the state.
If this happens, your business name reservation becomes void, and other companies can take your business name to use for themselves. Even if you act quickly to reverse the dissolution, you may never get your business name back.
Can I Be My Own Registered Agent in Ohio?
There’s nothing that legally prevents you from being your own statutory agent, but before you do you should learn more about being your own agent and compare it to hiring a professional registered agent service.
Cons of Being Your Own Registered Agent
Liability
When you formed an Ohio LLC, you likely did so to enjoy the benefits of limited liability protection, separating your personal and business assets. But when you’re your own agent, you risk this protection if you screw up the job or make a mistake. The busier and bigger your business, the higher the chance that this could happen.
You’re not in the clear just because you don’t own an Ohio LLC, either. All business entities must maintain a registered agent in Ohio, so this law applies whether you own an Ohio corporation, sole proprietorship, or limited liability partnership.
Lack of Privacy
A big downside to being your own registered agent is having large portions of your personal information listed on the public record. If you don’t have a physical location or street address, then you’ve got no other option but to list your private address.
Unfortunately, the word “public” means that everyone has access to your information, even cybercriminals and hackers who would use it to steal your identity. They could easily rack up thousands of dollars worth of debt in your name and completely ruin your credit score.
Most frightening is the idea that anyone could get their hands on your information and use it as they wish.
Time
The biggest turnoff of being your own registered agent is that it’s a full-time job that requires a lot of time and effort. The Ohio Secretary of State stipulates that your company’s registered agent must be physically present at your company’s mailing address during normal business hours to accept legal documents and mail for your business.
I’m willing to bet that your business is also open during normal business hours. So, it’s not likely that you’ll be able to adequately perform your job as a business owner and as your own registered agent unless you can somehow magically teleport between the two places.
Pros of Being Your Own Registered Agent
The one good thing about being your own registered agent is that you won’t have to pay fees to an Ohio registered agent service. But considering all the hassle and liability involved with being your own Ohio registered agent, you might just reconsider taking on the extra work.
The good news is that most registered agent services are pretty inexpensive.
Should I Use a Registered Agent Service?
If your business operates in multiple states, you’re legally required to maintain a registered agent in every state in which it conducts business. So you’ve got two options: either you can hire multiple registered agents, or you can hire a national registered agent service to make sure your legal obligations are met.
But that’s not the only reason to hire a registered agent service. Here are some reasons other business owners choose to use an Ohio registered agent service.
- Compliance alerts
- Never missing a service of process
- Good-standing status
- Useful for a foreign corporation or foreign LLC
- Daytime rest for businesses open at night
- Privacy
- Premium registered agent services, including identity theft protection
- Business formation services, including a year of registered agent service free when you sign up for business formation
Obviously, you own your business and you ultimately have the final say on the subject. I’m not here to push registered agent services on you. But I will say that I always recommend that new business owners use a registered agent service.
How to Find the Best Registered Agent Service in Ohio
It can be quite tricky to choose the best statutory agent or registered agent service for your company. Here are a few ideas to kick around when choosing an Ohio registered agent service.
Service Features
Some Ohio registered agent service providers offer compliance alerts so you don’t have to worry about missing an annual report or other important filing deadline with the Ohio Secretary of State and losing your company’s good standing. Then there are others that simply supply you with a compliance calendar pre-loaded with your filing deadlines and send you on your way.
Some registered agent service companies provide online document-management systems, which allow you to view mail and legal documents from your registered agent online.
With an online account, you can view your important notices and mail a lot faster than you could with traditional mail-forwarding services, and you’re able to use the online service to store and manage your documents, which means keeping your company’s records won’t require as much physical space.
Make sure you look into what services each Ohio registered agent service offers so you can choose one that provides everything your company needs.
Value
One good way to find out whether an Ohio registered agent provider is worth the money is to consider both its list of services and its price. If a statutory agent or registered agent has a padded list full of high-quality services and a low fee, it’s likely a good value.
But make sure you stay far away from “budget agents.” These sneaky registered agents lure in new clients with start-up fees of $39–$59. The problem is they charge loads of additional fees for services that you’ll definitely miss if you don’t opt for them, like document-management systems and compliance alerts. So, if you find a budget registered agent, give it a pass.
Easy Sign-Up
Business owners are serious about their time, and they don’t like it being wasted. This is especially true when you’re trying to get your business established.
Some Ohio registered agent services don’t stop at making you fill out mountains of paperwork, but make you wait weeks or even months to complete the sign-up process. Because of this, it’s important for you to find a registered agent in Ohio with a speedy and efficient sign-up process.
User-Friendly Interface
Some companies have frustrating systems that you’re forced to deal with on a daily basis, the opposite of what you want in a registered agent system. They have complicated navigation systems, confusing layouts, glitches and errors, and they’re more likely to freeze up and crash than not. You should look for a registered agent that has a simple and reliable user interface.
Customer Service
The registered agent for your company is in charge of loads of important tasks, and if they’re neglected it could have a lot of serious financial and legal repercussions for your company. So, quality customer service is a must. You’re eventually going to have questions about your service or run into some sort of technical issue that requires urgent attention!
I used these factors, along with my four-stage investigative process, to find the best registered agent service, Northwest Registered Agent. If you want to learn more about the various services that different providers offer, or how to choose the best registered agent service for your company, read my guide to the Best Registered Agent Services.
Conclusion
As a new business owner, you’re responsible for learning tons of new information quickly, and you’ll have a lot of new responsibilities. But your registered agent can take some of the work off your hands.
For more about registered agent services or the best registered agent service for your business, read the Best Registered Agent Services. If you haven’t established your business yet and are interested in the limited liability company structure, read How to Start an LLC. If you need guidance through the formation process, read my guide to the Best LLC Formation Services.
Ohio Registered Agent FAQs
What’s the Difference Between a Commercial and a Noncommercial Registered Agent?
A commercial registered agent is one that’s registered with the Ohio Secretary of State. In some states, all professional registered agent services are required to register as commercial registered agent services.
A noncommercial registered agent is one that hasn’t registered itself as a commercial registered agent. It can be an individual or business. If you’ve designated a family member as your registered agent, then they’re technically a noncommercial registered agent.
How Do I Change the Registered Agent for My LLC?
Good news: you aren’t stuck with the same registered agent for the life of your business. It’s pretty simple to change your registered agent. All you have to do is fill out a Statutory Agent Update form and submit it with the Secretary of State’s office.
You can only submit the Statutory Agent Update form by mail or in person — there’s currently no online option. And there’s a filing fee of $25.
How Much Does a Registered Agent Cost?
A lot of factors go into calculating the cost of registered agent service, like which registered agent provider you choose, and which services you select. But, generally, registered agent services cost somewhere between $39–$299 per state, per year, plus the filing fee. If you want to learn more about registered agent pricing, read the Best Registered Agent Services.
