Your LLC can't function without a registered agent. Find out what a registered agent does and how to find one for your LLC.
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by Brette Sember, J.D.
Brette is a former attorney and has been a writer and editor for more than 25 years. She is the author of more than 4...
Updated on: October 26, 2023 · 4 min read
A registered agent is a person or company designated to accept legal notices, such as mail from the Internal Revenue Service or a summons in a lawsuit for your LLC. You must fill this essential role to ensure your LLC operates smoothly.
Find out more about what a registered agent does and how to find one for your LLC.
A registered agent is required to open an LLC, C Corp or any other business entity. You can't file business formation papers without one. If you don't have a registered agent who accepts documents and gives them to you, you will miss essential notices your business needs.
Without a current registered agent, your business faces the following problems:
The registered agent can perform a lot of other activities on your behalf in addition to accepting notice and service.
“The essential duty of a registered agent is to accept service of process on behalf of your business. They are also the primary point of contact for your business with the state. Dependent on whether you hire a professional registered agent, your agent may also provide compliance monitoring such as for annual reports," explains Cynthia Flynn, Esq. of Hackler Flynn & Associates APC in Pasadena, Calif.
Any person over 18 years old or business can be a registered agent, but there are some specific requirements they have to meet:
You can name a single person or you can hire a registered agent company to fill this role for you.
You don't necessarily have to hire someone to be your registered agent. Flynn explains, "An LLC can decide to be their own registered agent by appointing a member, owner or manager."
There are some caveats to doing this yourself, though. If the designated person is not physically located at the office and legal service is attempted, in some states, "substituted service" is allowed. This means the notice will be considered delivered by sending it to the state's Secretary of State or by posting or publishing the notice. You may never receive the notice and a default judgment could be entered against your business.
Another drawback, according to Flynn, is that "If your designated registered agent is a person located at your business, then legal papers may be served in front of your clients and employees, which can be embarrassing." Imagine being served with notice that you're being sued right in the middle of closing a big deal. Another concern to be aware of is that the name and address of the registered agent is a public record, so you'll get more junk mail.
If you are not actually in the state where your business is registered, aren't comfortable naming someone in your company, or don't want to manage this in-house, you can hire a registered agency company. This is a business that takes on the registered agent role for a fee. Start by searching for a registered agent in your business' state or checking to see if your state's business department has a list of them. Moore says, "Beyond searching online and asking for recommendations from others, it's important to find an agent that suits your company's circumstances and longer-term ambitions."
If you conduct business in multiple states, you will need a registered agent service that provides nationwide services like Legal Inc.
Consider the following factors when choosing one:
A registered agent is an important part of your business. Choose one wisely and carefully so that you can focus on doing business.
Did you know Legalinc is a fully owned Legalzoom subsidiary that provides Registered Agent representation for Law Firms, Tax Firms, and in-house legal teams at multi-state / multi-company organizations?
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