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If you’ve decided a corporation or limited liability company (LLC) is the best business structure for your company, you’ve probably come across the term “registered agent.” When you register your business with your state, you need a registered agent. Here’s what you need to know about what a registered agent for an LLC is, whether you really need one, and where you can find one.
What Is a Registered Agent?
A registered agent is a person or company that is designated to receive legal correspondence on behalf of the company—such as an LLC—and relay important messages to the owner in a timely manner. This includes government, tax and legal correspondence.
Do I Need a Registered Agent?
If you’re starting a new company and have begun researching LLCs and other business structures, you might be wondering: do I need a registered agent? The answer is yes. You are legally required to list a registered agent as part of your LLC or corporation.
Registered Agent Legal Requirements
There are a few legal requirements for a registered agent:
- Physical address. The agent needs to be located in the same state as your business. They are required to list a physical address (not a post office box) and be physically present at this location during standard business hours.
- Who can be a registered agent? You can list yourself, an employee, your lawyer or a trusted friend or relative as your registered agent, but this could pose issues if the person listed is out of town or not able to receive mail. A professional registered agent service can help solve this problem. Ultimately, there are pros and cons to these options.
- State–specific laws. Many states have specific laws regarding registered agents. Be sure to check with your state legislature to ensure you are following important guidelines.
Do You Need a Registered Agent for an LLC?
When you form a limited liability company (LLC) or corporation, you’re required to list a registered agent. A registered agent is a person or entity you have appointed to handle necessary government, tax and legal correspondence about your business. The main purpose of a registered agent is to ensure your business receives essential and time-sensitive information.
If your business is sued or subpoenaed, the opposing party will send notices to the registered agent listed in your business’s public records with the state. A reliable registered agent will let you know right away when documents arrive, giving you as much time as possible to respond. Without a registered agent, important correspondence can be lost in the shuffle of your other business mail, causing you to miss deadlines and suffer legal and financial consequences.
Should I Be My Own Registered Agent?
You can list yourself as a registered agent for your business, but this can pose some issues if you do not work from one physical location or are not present at the physical location you list during normal business hours.
Hiring a Registered Agent
You can hire a registered agent service for an annual fee. This can solve many of the problems that listing yourself as your registered agent could pose.
Hiring a professional registered agent from a service will give you the assurance that someone will always be available to receive important legal mail and relay it to you in a timely manner. Annual fees for a registered agent service average between $50 and $300 per year. Many registered agent services operate in all 50 states. If your company is registered to do business in multiple states, you can hire one company to handle all your registered agent needs.
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