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A registered agent (RA) is a company’s official contact for receiving vital papers such as a summons, subpoena, or renewal of registration. While every state requires that a company have a registered agent, rules vary. Some states enable businesses to be their own RA, whereas others do not. It will cost between $100 and $300 each year to engage a corporation to act as your registered agent.
What is the Function of a Registered Agent?
The basic tasks of a registered agent are as follows: One of your responsibilities is to act as the official point of contact for legal paperwork. If your company is sued, the case will not commence until the summons is served in person. The law mandates all firms to have a contact accessible Monday through Friday from 9 a.m. to 5 p.m. due to the in-person requirement.
If your Secretary of State’s office is unable to locate someone at your location, you might lose your company registration or face a fine.
The registered agent also serves as your point of contact for state communications, such as company registration renewal. To be registered in a state, LLCs and corporations must renew their registration and pay a fee every year. When it’s time to renew, the state will contact you.
Let’s say you lose your mail and don’t re-register until after your renewal deadline. You’ll have to pay a fee or, if you wait too long, your legal entity status with the state will be revoked.
Only corporations and limited liability companies (LLCs) need a registered agent. You don’t require a RA if your company is a sole proprietorship (or if you’ve filed a DBA related to a single proprietorship). As a single proprietor, the fact that you are the owner is fully disclosed to the state.
It’s also worth noting that a registered agent may go by a different name depending on the state where you’re conducting business. Other names for this creature include:
- Statutory representative
- Agent on the ground
- Service of Process Agent
It’s always a good idea to look out for the exact criteria for your registered agent on your state’s official business registration website. In Virginia, for example, the RA must be an attorney, a member of the corporate entity’s management, or a licensed business in the state—it cannot be the company itself or a family member who is not involved in the company.
Is It Necessary for You to Be Your Own Registered Agent?
You could think about being your own registered agent. You’d save at least $100 a year if you did this. The criteria to be a registered agent, if authorized in your state, are rather simple:
- Individual who is a resident of the state where your business entity is registered or incorporated: You must be a resident of the state where your business entity is registered or formed.
- Physical address: Within your state of incorporation, you must have a physical address. A post office box is not considered an in-state address. In certain jurisdictions, in addition to selecting a registered agent, you must also name a “Registered Office.”
- During “regular” business hours, 9 a.m. to 5 p.m. Monday through Friday, you or someone in your organization must be present to take mail and other papers on your behalf.
Even if you complete the aforementioned requirements to be your own registered agent, there are a few drawbacks to being your own RA:
- Receive junk mail: Many organizations send promotional offers to your registered agent address, which is visible to the public. You may not want this mail sent to your house if you work from home.
- If you have clients or workers in your workplace, you may not want to be served legal paperwork in front of them.
- If you conduct business in many states, handling paperwork and filings for each Secretary of State might be complicated.
- Being your own RA requires you to be at your office (or at home) during typical business hours.
- You may miss correspondence: If you fail to reply to a company renewal notice or a tax notice, you may incur penalties such as a fine.
If the disadvantages listed above make you reconsider becoming your own registered agent, you may want to consider hiring a registered agent service to act as your agent.
What is the Purpose of a Registered Agent Service?
A registered agent service is a corporation that communicates with the Secretary of State on your behalf. They will receive your legal, tax, and state notice letters and electronically send them to you. Your junk mail will also be accepted by the RA service, which will dispose of it for you. A registered agent service typically costs between $99 and $350 per year.
The following are some of the advantages that a registered agent service may provide:
- Physical address: Certain legal papers must be delivered to a physical location and cannot be mailed to a P.O. box.
- Mail forwarding: Even if you move, a registered agent may guarantee that important mail is delivered.
- Registered agents preserve your personal information, such as your home address, and limit the possibility of potentially humiliating events, such as being issued a summons while in front of prospective customers or neighbors.
- Compliance monitoring: Registered agents assist you in filing paperwork in accordance with legal deadlines and requirements.
- A registered agent may also assist you in keeping track of your documents and being organized.
The Benefits of Using a Registered Agent Service
The following are some of the advantages of using a registered agent service:
- Reliable: Using a third-party registered agent service ensures that your company receives important paperwork on time.
- If you work from home or have other reasons to keep your contact information private, RA services are a fantastic alternative. Using a registered agent to receive legal process papers may also help you avoid awkward situations like being served a summons in front of prospective clients.
- Flexible: You may use a registered agent service to run a company in a state where you don’t have a physical location during regular business hours. This adaptability is beneficial to enterprises that are mostly online or mobile, such as a food truck.
Cons of Using a Registered Agent
The following are some of the disadvantages of using a registered agent service:
- Costly: Hiring a registered agent service is more expensive than doing it yourself or using a friend or family member as your agent.
- Requires additional paperwork: Using a Statutory representative service requires you to sign up and pay for a service.
Where Can I Find a Registered Agent?
There are a plethora of firms that may act as your registered agent. Fees are one consideration to evaluate while choosing a RA. You may be able to locate businesses that are free or low-cost. However, before you sign up for a low-cost RA service, make sure you understand if there are any additional costs for services like as document sending or second-year renewal.
Here are a few of our favorite registered agent businesses that are both dependable and reasonably priced:
Registered Agent in the Pacific Northwest
Registered Agent in the Pacific Northwest primarily offers RA-based services. It specializes in making sure your business information is private and secure. If they can put their address on a form or submit a simple document on your behalf, they will. For its registered agent services, Northwest costs $125 per year.
IncFile
IncFile is the ideal option if you want to register your company as a legal entity as well as acquire a RA service. It offers free company registration (LLC or corporation) as well as free registered agent services for the first year. IncFile’s RA services cost $119 per year beyond the first year.
Rocket Lawyer
What makes Rocket Lawyer is a law firm that specializes on unique is its monthly membership for ongoing legal services. If you have multiple legal steps to take to start your business, such as customizing legal documents or answering specific legal questions, consider using Rocket Lawyer. The standard price for a registered agent with Rocket Lawyer is $149 per year. However, if you sign up for its $39.99 per month legal services, you’ll save 25% per year on your RA.
Frequently Asked Questions (FAQs)
Who is eligible to serve as a Registered Agent?
The qualifications for a registered agent vary by state, but in general, it must be a person 18 years or older with a physical address in the state where the LLC is formed. During regular business hours, your RA must be accessible at that address. You may either employ a registered agent service or find a friend or family member who qualifies.
Is it possible for you to act as your own registered agent?
If you’re beginning a company on a shoestring budget, you may be tempted to take on the position of registered agent. Make sure you or someone from your firm will be accessible in the office during regular business hours before you do this. You should also keep in mind that, with the exception of a few states, you cannot identify your LLC as its own registered agent.
Is it possible for the Organizer of an LLC to also serve as the Registered Agent?
If the LLC’s organizer has a physical location inside the state and someone can take mail at that address during regular business hours, the RA may be the LLC’s organizer. To avoid misplaced mail, variable business hours, or other concerns that might result in a missed delivery, we suggest using a registered agent service.
Is it Possible for a UPS Store to Act as a Registered Agent?
A UPS shop is not permitted to act as a registered agent. A physical address in the state where your business is organized is required for registered agents.
During normal business hours, someone must also be accessible to receive mail. A P.O. Box or leased box at a UPS shop isn’t an appropriate registered agent due to these restrictions.
Conclusion
If you’re convinced that mail won’t go lost and you’re accessible at an office during typical business hours, you can probably function as your own registered agent. Consider employing a registered agent service if you travel regularly, don’t want unwanted mail, or conduct business in many states. An annual charge of $100 to $300 for a RA service will provide you peace of mind and keep you up to date on crucial legal and state topics.
