What is a "Registered Agent"?

All state-registered business entities, such as LLCs and corporations, are required to have a registered agent in the state where the company is formed or doing business in. In addition, every state requires an LLC or corporation to assign a designated physical street address to the registered agent for state documents.

Requirements vary among the states, but generally registered agents must:

1. Have a physical office in the state where your business is registered.

2. Be available at the physical street address during normal business hours to receive legal documents.

3. There are a couple of options when selecting your registered agent for your startup. In this article, we will help you determine the best registered agent option for you.

What is a Registered Agent?

A registered agent is formally known as a "registered agent for service of process" and may also be known as a resident agent, statutory agent, or agent of record. It acts as an agent to receive legal documents on behalf of the registered business.

These documents may include primary communication, between the business and the state in the form of the following:

Tax-related documents from the IRS, the Franchise Tax Board, and other government tax entities.

Normal corporate filing documents, such as reminders for filing the statement of information and other information sent by the secretary of state.

Notice-of-litigation mail (mail that initiates lawsuits) and legal documents when others want to formally contact you or send you notice.

Failure to have a proper registered agent for your company may result in fines and possible loss of good standing with the state. Therefore, it is important to keep accurate corporate records with the state so you do not miss receiving legal documents. To remain in compliance with state laws, most states require the business to designate a registered agent.

For LLCs and corporations, a registered agent service is essential to maintaining good standing and keep your business running without encountering compliance issues.

Compliance requirements can be both time and labor intensive, often requiring the completion of lengthy and sometimes confusing forms using information from various sources. By using a registered agent service for your business, you will be confident that you can avoid risk of non-compliance so you can avoid penalties and fees by the state as well as save time to run your business.

A registered agent service also provides many benefits of privacy, convenience, and staying on top of all legal and government documentation in a timely manner for your business.