What Is a Registered Agent?

When starting a business, one of the steps you'll need to take is designating a registered agent. States require most business entities to have a registered agent so the business has a reliable point of contact to receive official documents. There are several ways you can comply with this legal requirement.

What Is a Company's Registered Agent?

A "registered agent" is someone whom you designate to receive official papers for your business. These official papers include court documents if your business is sued (what lawyers call "service of process"), business registration renewal notices from the secretary of state, and tax notices.

Such a person is called a "registered" agent because you submit a form to the state that "registers" them to be your business's agent for official communications.

A registered agent is also sometimes called a:

• "statutory agent"
• "resident agent," or
• "service of process agent."

While a registered agent can go by many names, they all serve the same legal function for a company.

When Do You Need a Registered Agent?

You need a registered agent in each state where you're registered to do business with the secretary of state or similar state official. As a rule, you need a registered agent in any state in which you've registered a:

• corporation
• limited liability company (LLC)
• limited partnership, or
• limited liability partnership (LLP).

In general, none of these business entities can serve as their own agent to accept legal papers. They must appoint a third party to serve as agent.

If you're just starting a registered business, such as an LLC or corporation, you must designate your initial registered agent as part of your articles of organization (for an LLC) or articles of incorporation (for a corporation). These forms—which have different names in some states—are available for download directly from websites maintained by each state's secretary of state or equivalent office.

How Do You Choose a Registered Agent?

You have several options when it comes to choosing a registered agent.

Who Can Be a Registered Agent?

A registered agent can be an individual (over 18 years of age) or a business. However, the registered agent must be located in the state where your business is registered.

You must provide the secretary of state not just your registered agent's name but also a physical—street—address. Providing this information ensures that documents relating to lawsuits can be personally served on an actual, physical location.

Can You Be Your Own Registered Agent?

Ordinarily you or another member of your business, such as a partner, member of your LLC, officer of your corporation, or employee, can serve as the registered agent. In this event, the address for the registered agent will be your business location.

Alternatively, your lawyer, spouse or other relative, friend, or trusted person can serve as registered agent.

Most small businesses (ten or fewer employees) use individual registered agents because it saves money. However, using an individual registered agent does have a few potential drawbacks:

• The registered agent's street address will become a public record—this could be problematic if a home address is used.
• The agent must keep their address up-to-date with the secretary of state—failure to do so may mean misdelivery of important papers.
• The agent must be available to accept papers during normal business hours 52 weeks a year.

If you do elect to use an individual as your registered agent, make sure the person agrees to do so before you designate them as your agent in the filings you make with the secretary of state.

Using a Registered Agent Service Company

Instead of designating a private individual to serve as your registered agent, you can hire a private registered agent service company. This private company is in the business of serving as the registered agent for LLCs, corporations, and other businesses. Such companies must usually register as corporate agents for service of process with the secretary of state of the state involved.

These firms charge an annual fee—typically, $100 to $300. In return for paying the fee, you get the assurance that important papers sent to your business will be received and forwarded to you. Better service companies scan the papers they receive for your business and make them quickly available to you online.

In addition, many registered agent services provide other services like:

Tracking due dates for government filings. Registered agent services will track and notify you when documents such as annual report filings and license renewals are due. Some might also provide you with a compliance calendar to help with day-to-day administrative management.

Maintaining document copies and files. Registered agent services maintain files of all your documents in one location, giving you a backup. As mentioned before, some services scan documents electronically so that you can access your legal and government paperwork electronically from your office.

Helping with paperwork. Some services save you time by automatically populating documents you file annually or quarterly with standard information like your company name and license or tax number.

Online businesses without a physical location or companies with multiple locations can especially benefit from hiring a third party service. You can hire a national service company with offices in every state so the company can serve as your registered agent in any state in which you register to do business.

How Do You Add or Change a Registered Agent?

If you designated yourself as your registered agent when you started your business, and later decide to hire a service; or if you change your registered agent for another reason, you'll need to notify the state or states where you operate by filing a change of registered agent form.

The form, also called a "change of agent form," "statement of information form," "change statutory agent form" or something similar, is usually available online on the secretary of state's website.

The information required to make the change varies slightly by state, but in most cases, you'll need to provide:

• your company name and address
• your tax or business license number
• the name and address of your former registered agent, and
• the name and address of your new registered agent.

Once you've completed and signed the form, you'll need to return it in person, by mail, or by fax in most states. States that allow you to submit the form online usually process it immediately.

Fees also vary by state. Some don't charge anything, but in most cases, fees range from $5 to $60. Many states offer expedited processing for an additional fee.