You need a registered agent in your state if your business is a Limited Liability Company (LLC) or a corporation.
All states require LLCs and corporations to identify a registered agent and registered office in the articles of organization before you can file your articles of organization with the state filing authority.
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Additionally, LLCs and corporations must always have a registered agent in each state in which it is conducting business.
Registered Agents
What is a registered agent?
Simply put, a registered agent is an individual, or a company, that is your official point of contact with the state to receive service of process, legal and state documents, and transmit these communications to your business.
A registered agent accepts tax and legal documents on behalf of your business, making sure you don’t miss important information regarding tax payments, lawsuits or judgments involving your business.
A registered agent may or may not have a role in your business operations.
Can you be your own registered agent?
Yes, it is legally possible that you serve as your own registered agent and save a bit of money.
Here are some common issues that come with being your own registered agent: trying to figure out which physical address to designate, determining whether or not you’ll be available during general business hours to receive documents, and the security in knowing that unexpected visitors can come by your place of residence or business location.
Benefits of having a registered agent
Consider the following benefits of having a registered agent:
- One of the biggest benefits to working with a registered agent is getting an extra layer of privacy. It is less likely that you will have to accept potentially embarrassing legal and tax documents in front of your clients.
- If you do business in multiple states, you can use a registered agent service in all those states. If you do not have a physical location in the state in which your business is registered, you must select a registered agent to accept documents on your behalf. (Government notices can’t be sent to a PO Box in many cases).
- Your registered agent address will remain the same, even if your business address does not. You can easily change your business location without having to file more paperwork to change your address with the state for each and every move.
- You won’t be in danger of falling out of good standing with your state. Losing good standing can have a serious impact on your business. It can prevent you from bringing a lawsuit in the state, expanding into other states, or obtaining financing that you need to expand your business.
- A registered agent will ensure that all time-sensitive documents are taken care of and organized to keep your business compliant with regulatory requirements.
- Your business, and you personally, may be hit with fines and penalties for noncompliance. Without a registered agent, you may be unaware of the situation which can cause the amounts and sanctions to continue to increase.
