Whether your business is a sole proprietorship, LLC, or corporation, a registered agent is a good idea and, in most cases, a necessity. <\/p>\n\n\n\n
A registered agent is an important part of business formation and plays a major part in the legal and compliance obligations of your business. <\/p>\n\n\n\n
But what is a registered agent, what does it do, and most importantly, do you actually<\/em> need one?<\/p>\n\n\n\n The term registered agent<\/em> means an individual or business entity that is available and physically present during standard business hours to receive legal documents, official mail, official correspondence from government agencies, and legal notices. In case of litigation, an agent will also accept service of process from a process server on your business\u2019s behalf. <\/p>\n\n\n\n Of course, it does no good for the registered agent to accept this information if you never receive it. That\u2019s why the other half of a registered agent\u2019s job is to transmit important notices and information to the business owner. <\/p>\n\n\n\n A registered agent is also sometimes referred to as a statutory agent or resident agent, so if you see either of those terms on your formation documents or in your research just know it\u2019s all the same. <\/p>\n\n\n\n Registered agents are required in all 50 states<\/a> for any company registered as a business entity. If your business operates in more than one state, you\u2019ll be required to maintain registered agent services in those states, so it\u2019s a good idea to hire a registered agent service<\/a> there or designate someone who can be present at those locations.<\/p>\n\n\n\n There are a few requirements for registered agents that are true for every state. Here are a few requirements that every registered agent must meet: <\/p>\n\n\n\n At this point, you\u2019re probably wondering why you need a registered agent if all they do is receive mail and official notices. Couldn\u2019t you just have your company\u2019s mail delivered to a PO box and check it yourself with some degree of regularity? The short answer is that receiving mail on behalf of your business is only a portion of the duties that a registered agent performs, and you can\u2019t actually list a PO box on your business formation documents. A physical address is mandatory. Here\u2019s what else makes a registered agent essential to your small business: <\/p>\n\n\n\n Another major function of a registered agent is to ensure that business owners comply with state business regulations. They do this by sending you notifications about compliance filing deadlines for things like your annual report or yearly tax filing requirements in your state. <\/p>\n\n\n\n Essentially, you can think of a registered agent as a middle man between your small business, LLC, or corporation and government agencies. It ensures that should some problem arise, you\u2019re guaranteed to be notified about it so that you can resolve the issue. <\/p>\n\n\n\n You can\u2019t list a PO box on your formation documents; you must have a physical address. This is where your official correspondence from the government will be sent as well as other business mail. The great thing about a registered agent is that it will process these documents, scan them into a software system, and make them available to you digitally, at all times. The best ones do this, anyway.<\/p>\n\n\n\n Businesses that are registered as business entities, such as a limited liability company or corporation, are required to maintain a registered agent. This is true in all 50 states, so if you\u2019ve registered your business as a business entity, you need a registered agent. <\/p>\n\n\n\n If your business operates in multiple states, then you\u2019ll need to designate a registered agent or consider hiring a registered agent for multiple states. <\/p>\n\n\n\n Because a registered agent is required to be present at the physical address listed on your formation documents to accept legal documents, service of process, and official mail from government offices, such as the Secretary of State or IRS, during regular business hours on your company\u2019s behalf, if you don\u2019t designate a registered agent or list your registered agent\u2019s address on your formation documents you risk missing this important correspondence. <\/p>\n\n\n\n If a process server makes several attempts to deliver service of process to the business address you\u2019ve listed, they might try to deliver it to the Secretary of State in an attempt to contact you. This could have dire legal and financial consequences, including the Secretary of State\u2019s office proceeding with legal action without your knowledge and a default judgment being issued against your business. <\/p>\n\n\n\n Failing to name or maintain a registered agent or meet compliance obligations (like filing an annual report or paying certain taxes) could lead to the removal of your company\u2019s good standing status and stop you from conducting business in the state. Losing the good standing status of your business could also prevent expansion into other states and financial assistance to grow. <\/p>\n\n\n\n In the worst-case scenario, your LLC will be automatically dissolved, and an LLC that\u2019s dissolved doesn\u2019t have the right to use its name in the state, so other companies could theoretically scoop it up and use it. Even if you\u2019re quick to remedy this legal snafu, you may not get your business name back\u2014EVER. <\/p>\n\n\n\n It\u2019s risky to run a business once the LLC has been dissolved. Business owners operating without a registered agent and state-recognized LLC status become personally liable for the business. This means that members of limited liability companies are at risk of their personal information being listed on the public record, and their personal assets are vulnerable to lawsuits as well. <\/p>\n\n\n\n Of course, the legal process and ramifications of not having a registered agent aren\u2019t limited to LLCs. There are financial and legal risks for all business entities without a registered agent. <\/p>\n\n\n\n There aren\u2019t any states that prevent you from being your own registered agent. So generally speaking, yes, you can be your own registered agent. But you should learn more about the pros and cons of being a registered agent before you choose to supply registered agent services. <\/p>\n\n\n\n The biggest drawback of being your own registered agent is that if you miss important documents that are intended for your LLC or corporation it could result in legal action against your business. If you miss a service of process, a default judgment could be awarded against your business without your knowledge, which means you won\u2019t be able to defend your business in court and you\u2019ll simply be forced to abide by the ruling. <\/p>\n\n\n\n Another significant drawback is that when you list a registered agent for your business, your registered agent information is listed on the public record. If you aren\u2019t using a professional registered agent service provider, you\u2019ll have to list your personal address. This is important to note because on top of being a major violation of privacy, it could lead to cyber attacks and identity theft. Such sabotage would be catastrophic to most small business owners. <\/p>\n\n\n\n Some people consider the biggest drawback to performing registered agent services to be the amount of time it takes up. Being a registered agent is massively time consuming. As a registered agent, you must be present to receive official documents during business hours for your business. What many people don\u2019t account for is the fact that most businesses operate during the same hours. This means that you can\u2019t be both working AND performing your registered agent duties at the same time because you can\u2019t be in two places at once. <\/p>\n\n\n\n There\u2019s only one real advantage of taking on the role of registered agent yourself: you won\u2019t have to pay any fees for registered agent services. But many registered agent services are so inexpensive that a lot of small businesses simply hire a professional registered agent service to save themselves the hassle. <\/p>\n\n\n\n There are several advantages to hiring<\/a> a registered agent service. <\/p>\n\n\n\n Ultimately, it\u2019s your decision. But I recommend that all small business owners use a registered agent service. <\/p>\n\n\n\n When it comes to choosing the best registered agent service for small businesses, several factors are paramount. Here are some of the most important elements of a registered agent service:<\/p>\n\n\n\n If a company doesn\u2019t provide the services you need for your business, then there\u2019s no reason to hire them. Some agents send compliance notifications and some don\u2019t. Some upload or forward all your mail and some only forward the most important documents.<\/p>\n\n\n\n The best registered agent services provide a combination of a full range of registered agent services and low prices. But beware of so-called budget agents. They charge a low price for bare-bones service and then heaps extra for essential features, so they\u2019re a bit of a scam.<\/p>\n\n\n\n Some registered agent services can waste days or weeks of your time with lengthy sign-up processes that require loads of work, so you should look for one that has a more streamlined and automated sign-up process.<\/p>\n\n\n\n Because you\u2019ll need to use the system so much, you want one with a user-friendly interface that\u2019s easy to navigate. Some companies out there have outdated systems with poorly laid-out interfaces that are confusing and full of glitches and technical problems. Avoid them.<\/p>\n\n\n\n No matter how good the agent is, you\u2019ll eventually have to use its customer service. And when it comes to something that could literally mean the difference between \u201copen for business\u201d and \u201cpermanently closed,\u201d good customer service is crucial. <\/p>\n\n\n\n If you\u2019d like more registered agent information, including how to choose the best one for your business, read my guide to the best registered agent services<\/a>. <\/p>\n\n\n\n Starting a new business requires learning a lot of new processes, rules and regulations, and terms. And there are so many things you have to remember, such as compliance filing deadlines. Registered agent services are designed to ease some of the burden on the business owner.<\/p>\n\n\n\n Whether you\u2019re a sole proprietor, LLC, or corporation, you can be your own registered agent, choose someone close to you that you trust with the task, assign it to an employee, or choose a registered agent service, but you must designate someone. <\/p>\n\n\n\n If you\u2019re still taking time to decide on your business structure, then now is a good time to learn about your options. If you\u2019d like to learn more about LLC formation, read my guide about how to start an LLC<\/a>. If you think you might need help with your LLC formation, check out my article about the best LLC formation services<\/a>.<\/p>\n\n\n\n Whichever business structure you decide on, a registered agent will help you stay in compliance with state authorities and manage every piece of mail and legal notice that comes your way. Since even the best ones are inexpensive, you won\u2019t regret hiring a registered agent service.<\/p>\n\n\n\n You\u2019ll likely notice the words \u201ccommercial registered agent\u201d as you do research on registered agents. The difference between a commercial registered agent and a noncommercial registered agent is simple. A commercial registered agent is a person or company that has filed a commercial registered agent listing statement and registered with the Secretary of State in that state. There are some states that require this and the distinction between the two types of agents came about with the Model Registered Agents Act, in which the American Bar Association made an attempt to standardize regulations for registered agents across the country, rather than each state abiding by different laws. <\/p>\n\n\n\n A noncommercial registered agent would be any registered agent that hasn\u2019t registered with the Secretary of State. These could include everyday individuals who are registered agents as opposed to businesses as well as some businesses that aren\u2019t required by their states to register as commercial registered agents.<\/p>\n\n\n\n If you\u2019ve stumbled across this page because you\u2019re dissatisfied with your current registered agent and you\u2019re asking yourself \u201cDo I need a registered agent?\u201d in frustration, the answer is yes, you still need<\/a> a registered agent. <\/p>\n\n\n\n The good news is that it\u2019s usually pretty easy to change the registered agent for your business, regardless of whether you own an LLC, corporation, or sole proprietorship. In most states it just requires filling out the appropriate paperwork and submitting it to the Secretary of State\u2019s office. You may be required to include a consent form that\u2019s signed by your new registered agent depending on which state you live in and the regulations there, and there will almost certainly be a filing fee.\u00a0<\/p>\n\n\n\n The cost of your registered agent depends on not only the provider you choose, but also the services. In general, registered agent services can cost between $39\u2013$299 per state, per year, plus state fees. If you\u2019d like to know more about registered agent pricing, read The Best Registered Agent Services<\/a>.<\/p>\n\n\n\n To learn more about the specific requirements in your state, click on your state below. Our state pages provide valuable information about registered agent laws and regulations, making it easy for you to determine what's required for your business.<\/p>\n\n\n\nWhat Is a Registered Agent?<\/h2>\n\n\n\n
Registered Agent Requirements<\/h3>\n\n\n\n
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What Is the Purpose of a Registered Agent?<\/h2>\n\n\n\n
Compliance<\/h3>\n\n\n\n
Management of Important Documents<\/h3>\n\n\n\n
What Happens if My Business Operates Without a Registered Agent?<\/h2>\n\n\n\n
Can I Be My Own Registered Agent? <\/h2>\n\n\n\n
Cons of Being Your Own Registered Agent<\/h3>\n\n\n\n
Liability<\/h4>\n\n\n\n
Lack of Privacy<\/h4>\n\n\n\n
Time<\/h4>\n\n\n\n
Pros of Being Your Own Registered Agent<\/h3>\n\n\n\n
Should I Use a Registered Agent Service?<\/h2>\n\n\n\n
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What Is the Best Registered Agent Service?<\/h2>\n\n\n\n
Service Features <\/strong><\/h3>\n\n\n\n
Value <\/h3>\n\n\n\n
Easy Sign-Up <\/h3>\n\n\n\n
User-Friendly Interface <\/h3>\n\n\n\n
Customer Service <\/h3>\n\n\n\n
Do I Need a Registered Agent? Conclusion<\/h2>\n\n\n\n
Frequently Asked Questions<\/h2>\n\n\n\n
What\u2019s the Difference Between a Commercial and a Noncommercial Registered Agent?<\/h3>\n\n\n\n
How Do I Change the Registered Agent for My LLC?<\/h3>\n\n\n\n
How Much Does a Registered Agent Cost? <\/h3>\n\n\n\n