What is a Registered Agent?

A registered agent is a person or business entity that performs a legal service for LLCs (limited liability companies). They work on your LLC business’s behalf to receive service of process notices, official mail, and other legal and tax documents.

State law requires that all LLCs have a registered agent. However, specific requirements vary by state as well.

As you go about starting your LLC or corporation, you’ll find that you need your own registered agent fairly early in the process. This might be you, or you may need to appoint one.

Different states have different requirements in terms of formation documents, filing fees, and the overall process of appointing a registered agent. However, a general list of steps can be followed in most states.

• First, business owners must choose and reserve a business name.
• Next, they must choose a registered agent, prepare their operating agreement, and file their Articles of Organization or Articles of Incorporation with the Secretary of State. These documents should be filed with the state where you plan on doing business.
• A certificate will then be issued to your newly formed company, and you can begin conducting business.

All LLCs needs to have a registered agent. Corporations and other formal business entities must have them as well. The requirement begins as soon as you register your small business with the state.

You will need to have the name of your business chosen and have filed your paperwork. Then, you can get your registered agent’s name and physical address on public record as well before you start doing business.

In order to be a registered agent (also called a statutory agent or a resident agent) in good standing, you must:

The registered agent’s address cannot be a P.O. box. It can, however, be a home address and does not have to be the same as your business address.

Other requirements may be in place as well. This usually depends on the state. In some states, for instance, only someone who is part of a business’s management team can be a registered agent. Other states require the registered agent to be a licensed attorney.

Likewise, most states require that registered agents are available during normal business hours. And age requirements are sometimes in place as well.

Below are some of the benefits of choosing a registered agent service to be your small business’s professional registered agent:

Your registered agent is integral to your business formation. It’s got to be a person or entity that you trust and someone who will receive your business’s notifications and handle all business mail.

If you do not feel comfortable being your own registered agent, you might consider hiring a company that offers these services for an annual fee. As noted above, registered agent services provide a multitude of benefits; however, there are many options to choose from, so it can sometimes be difficult to know who to hire.

Below are several recommended registered agent services to consider.

It is free to designate yourself as your business’s registered agent. It is also free if you designate a member of your management team or another employee as your registered agent. Whomever you choose must meet state and federal guidelines, however.

If you use a professional registered agent service, there will be additional costs. These may vary depending on several factors, but most of the time, you can expect to pay anywhere from $50 to $300 to a professional registered agent service each year.

Often, if you plan on incorporating with the same company, you can get your registered agent services free along with the purchase of your incorporation services for the first year. The cost for registered agent services generally go up for subsequent years, however.