Who Is Allowed To Be A Registered Agent

A registered agent is an private or company that receives service of process, legal documents and official notices on your business'south behalf. When registering a business entity, y'all'll exist required to appoint a registered agent who has a physical accost in the state of registration.

Not but anyone can make full this part, though. There are certain rules you lot need to follow when choosing one. Notice out why you need a registered amanuensis, who you can appoint and how to change agents.

Who needs a registered agent?

Whatever business that is registered with the state needs to engage a registered agent, also called a statutory amanuensis or resident agent in some states.

The following types of businesses demand to appoint 1:

Corporations
Limited liability companies
Limited partnerships
Express liability partnerships
Express liability limited partnerships (not recognized in every state).

If you have one of these business concern types, you lot'll be asked to name your registered agent during incorporation or business organisation registration. There's typically a spot to designate your registered agent on your articles of incorporation or articles of organization.

General partnerships and sole proprietorships don't need to designate one because these business organisation types are not registered with the state. Of course, all businesses need to keep up with business organisation revenue enhancement obligations and reply in a timely fashion to legal papers. Even so, the government doesn't proceed registered agent information on file for sole proprietorships and general partnerships.

Why do you lot need a registered amanuensis?

States have required businesses to appoint registered agents for decades. The master purpose is to ensure that at that place'south a reliable mode for the public, the courts and the regime to contact your visitor. Once the state has your registered agent data, it'south a matter of public record. Anyone searching through a business entity database can find out who serves this role for your company.

More specifically, hither are the three main reasons why registered agents are of import:

Receive legal process: People with legitimate legal complaints against a business accept an address to send service of process.
Government can contact you: The government knows how to contact a business that's delinquent on taxes or noncompliant with other laws.
Stay in compliance: Official papers notifying you of whatever action you need to have get to one accost.

Most businesses hire a legal service or an chaser to serve as registered agent. Your registered amanuensis will receive legal, tax and other official mail for you, frontwards the documents to your business address and notify yous of any deadlines or deportment that yous need to take. For urgent documents, such every bit observe of a lawsuit, you lot'll probable exist notified the very same day.

Registered agent requirements

In general, registered agents must run across the following requirements:

Age: If you use an individual, they must exist at least xviii years old.
Residency: If you employ an private, they must exist a resident of the state of registration. If the registered agent is a visitor, it tin can be a domestic or strange entity, as long equally it'southward authorized to do business concern in the state.
Physical address: Must accept a physical accost in the state of registration. This location is unremarkably chosen the "registered function." P.O. boxes don't count, and then yous tin can't apply a UPS Store, for case.
Availability: Must exist available to receive mail and sign official documents during normal business hours, Monday to Friday, nine a.m. to five p.m.

Different states accept slightly different regulations. For example, in Virginia, merely licensed attorneys or officers or members of the concern can serve as registered agents. And Arizona doesn't mandate that registered agents need to be available during normal concern hours. Your state's business filing agency will exist able to tell yous more most country-specific requirements.

In some states, the registered agent must submit a consent form indicating that they've agreed to be your visitor'southward registered amanuensis.

Keep in mind that if you lot're registered to practise business in multiple states, each land will require you to name a registered agent who has a physical address in that state.

Who tin serve equally your appointed agent?

Every land gives you the selection to appoint yourself, someone else within the company or a third party, as long equally the appointed agent meets the requirements mentioned higher up (plus any additional country-specific requirements). The but caveat — you can't proper name your concern as its own registered agent. At that place needs to a split up, responsible party, whether that's an individual or an outside agency.

Any of the following can serve:

Yourself
A business partner, officer, manager or fellow member of the concern
A business organisation lawyer
A company that provides this specific service, such equally LegalZoom or Rocket Lawyer.

Often, the quickest, least expensive way is to just appoint yourself or another person in the company as the registered agent. But business owners often detect that this is too time-consuming or inconvenient and end upwardly appointing either a lawyer or a service.

Joe Horan, the owner of Wrightwood Homes, an Indianapolis-based property buyer, says:

"I originally chose myself considering it was the easiest way to start my LLC. But I've recently chosen my attorney to exist my registered amanuensis. The primary reason is that my attorney too has her own real estate business, so she understands the details of mine. She tin handle all necessary paperwork and exist the 'legal face up' of my business. It's fairly cheap for the service. I pay well-nigh $100 per year for my chaser to be the registered agent for my business organization."

Rithvik Musuku, the president and CEO of Advancing Scientific discipline Worldwide, went with an even less expensive option:

"In Arizona (where we are incorporated), a registered agent can exist any person, and there is no requirement for them to be available during normal business organization hours. Ane of my family members living in Arizona is the registered agent for Advancing Science Worldwide. I would propose that those looking to start a business await into the registered agent requirements for their specific states."

Ultimately, the state doesn't intendance then much about who y'all choose, as long as they're doing what's required of them, so make sure your pick is convenient for you.

Reasons to use a legal service

Dozens of legal service websites, including LegalZoom, Rocket Lawyer and IncFile, offering registered agent services for a fee. There are multiple benefits to using 1 of these services, as opposed to appointing yourself or someone else within the company.

These are the benefits of using a legal service:

Inexpensive

LegalZoom, Rocket Lawyer and IncFile charge about $150 per year for registered agent services. You can detect fifty-fifty less expensive services, merely the dainty thing nearly sites similar LegalZoom is that they as well provide other kinds of legal aid with business setup and maintenance.

As your registered agent, they will accept all legal and official correspondence on your visitor's behalf, forward yous the documents and requite you timely notifications about pending deadlines or actions that y'all need to take.

Saves you time

Nearly one-3rd of pocket-sized-business owners piece of work more than 50 hours per week. If you're spending time sorting through official mail, that adds to your already busy lifestyle.

By using a service, you're free to go along holiday or accept time off without worrying that you're missing of import mail. You too save time of going through junk mail. Since a registered agent's address is a matter of public record, you will receive a lot of junk mail if you appoint yourself.

Privacy

Having a registered agent means that their address is public record, not your own. This protects your business concern to some extent from spammers. In add-on, when yous accept an appointed agent, you lot tin can avoid potentially embarrassing moments in front end of customers. Imagine being served with a lawsuit while you're helping a client. A service volition send you lot important documents via e-mail and postal mail.

Organization

If you have a fast-growing business, it can be tough to go along all your important paperwork and deadlines straight. Having a registered agent is 1 way to ensure that nothing gets lost in the shuffle. In addition to accepting official correspondence, LegalZoom and many other legal services will create a compliance calendar (like the one pictured to a higher place) for your business organisation, noting important authorities deadlines.

Matt Ross, co-owner of RIZKNOWS and The Slumber Yard, which operate multiple internet properties, chose LegalZoom afterwards using the website for LLC setup.

"Nosotros used LegalZoom to form our LLC, then we thought information technology was easiest to stick with them equally our registered agent as well… Whenever they receive documents from the country, they immediately snail-post us copies. Within the LegalZoom account portal, you can besides merely download PDF copies of the documents besides. In addition, there is also a calendar within the LegalZoom account portal that shows you when important deadlines are approaching."

Changing your registered agent

No thing who you select, you'll need to keep the information upwardly to date. Having a registered agent is an ongoing requirement, pregnant that you need 1 equally long as your business is operating.

If you change your registered agent or their contact information changes, you lot'll need to inform your state'due south concern filing bureau. In most states, at that place is a change class (instance from Texas shown higher up) that yous can download and fill out online. Some states allow electronic filing, while others require that you postal service in the form. The fee for irresolute your appointed amanuensis is usually pretty low, $25 to $50 in most states.

Information technology's like shooting fish in a barrel to forget about updating your registered agent, but make sure you make full out the necessary papers. The fines for a lapse can be pretty hefty. And if you become likewise long without an appointed agent, the country can revoke your certificate of skillful standing or even dissolve your company.

A version of this article was first published on Fundera, a subsidiary of NerdWallet