A registered agent is an individual or company that receives legal documents and government notices on behalf of a business entity. Most states require domestic and foreign businesses to appoint a registered agent, and failure to do so can result in penalties.
The best-registered agents are reliable and accessible and know state business filing requirements. A quality registered agent will also be available during regular work hours to receive service of process and other important documents.
What Does a Registered Agent Do?
A registered agent, also called a resident or statutory agent (names differ by state), is the person or business that a business designates to receive legal notices and service of process on its behalf. Most states require that businesses designate a registered agent when they incorporate or register to do business. While a business can act as its own registered agent, it is generally not advisable. Considerations include privacy (the agent’s address becomes public record) and consistency (it is difficult for a sole proprietorship or general partnership to maintain an office in every state in which it operates).
If your company does business in multiple states, consider choosing a registered agent that provides services nationwide. This will ensure that important legal documents and compliance deadlines are reliably received in all jurisdictions. It also simplifies the process of renewing your registered agent services because you will only need to submit one renewal form for all of your states.
How Does a Registered Agent Help My Business?
A registered agent can help you stay in compliance with your state’s business laws. By designating an actual person in the state where your business is registered to receive important legal documents and government notices, you know that you have a reliable way to be contacted in case something goes wrong with your company.
You may be tempted to save money by serving as your own registered agent, but that can put your personal information out in the public record and jeopardize your privacy. Also, if you work nontraditional hours or aren’t sure whether you’ll be at your home office during the week, hiring a professional registered agent service can keep important documentation from becoming lost or mishandled.
Many registered agent services offer storage for documents received on behalf of your company and can relay them to you on time. If you’re looking for a registered agent that offers excellent customer support, check out Northwest Registered Agent.
What Are the Requirements for a Registered Agent?
Generally, any individual or business with a physical address in the state where the entity is registered can be a registered agent. This includes you, as the owner of an LLC or corporation, your lawyer, a friend, or a company that provides registered agent services. It’s important that the agent you choose is available during normal business hours to receive documents (what lawyers call “service of process”) and official mail from the Secretary of State or tax agencies.
Many businesses prefer to hire a registered agent service that can be trusted to handle urgent documentation and relay it to the company owners on time. Using a registered agent service can also help to protect privacy by keeping your personal address out of public records.
If you fail to keep a registered agent active, your business may face monetary penalties or even be administratively closed by the state. This can leave you exposed to liability for debts owed by your business creditors.
How Can I Find a Registered Agent?
Choosing a good registered agent for your business is an important decision that should not be taken lightly. The registered agent you list with the state is responsible for receiving legal documents and service of process on your behalf. Missing these notifications could have a negative impact on your business by making it difficult to stay in compliance with state laws or even to know that a lawsuit has been filed against you.
While it is possible to appoint yourself or another person in your company as your registered agent, many choose to use a professional registered agent service because it saves time and money. These services will guarantee that someone is always available to receive legal documents and will promptly forward them to you.
There are many registered agent service providers in the US, but most large businesses rely on one of four big national companies that specialize in this service. These companies have offices in every state and offer competitive prices.