Colorado Registered Agent: How, Why, and When to Get One

What is a registered agent and what do they do?

A registered agent, also known as a statutory agent, is the person officially in charge of receiving legal documents on behalf of the business. The registered agent is the state's main point of contact for all important government correspondence like service of process government notices and other compliance-related documents.

A Colorado registered agent's key responsibilities are to:

• Receive service of process and other legal paperwork related to lawsuits like employee litigation documents or notice of garnishment proceedings against an employee.
• Maintain regular business hours (9 a.m.–5 p.m.) at a physical address in the state.
• Ensure timely notice of and delivery of documents to LLC owners. 

The Colorado Secretary of State has a mandatory registered agent requirement for all business entities registering with the state. There's no escaping this requisite, and not naming a registered agent can get your formation paperwork rejected. 

Extra services provided by professional registered agent services

Serving as your own registered agent may be tempting, but there are some risks and drawbacks. The role of a registered agent mandates that you are available on all working days during normal business hours at the address listed in your paperwork. It also requires you to be familiar with state laws and be able to handle important documents, like service of process, in a time-sensitive manner. These additional responsibilities can be overwhelming and take you away from concentrating on your business. 

There are several advantages to appointing a professional registered agent to do this job. In addition to handling the main responsibility of accepting legal documents and state mailings, many registered agent solutions go beyond and offer complimentary legal services. Some of these extra services may come at an additional cost.

Document scanning

Most of the registered agent services offer a digital edge, meaning they will digitally scan and safely store all received official documents. All important paperwork is organized and readily available through your online account. You can access the digital copies whenever you need to and take the necessary action. Plus, digital scanning is environmentally friendly, as there's less paperwork you need to hoard.

Mail forwarding

Depending on your needs, your Colorado agent provider may also forward you a physical copy of all the important paperwork that the registered agent receives. Some service providers might only send envelope mail and small packages, while others will forward only a limited amount of postal mail. Check with your registered agent service provider to see if they offer this service.

Time-sensitive alerts

Professional registered agents are familiar with the legal documents and compliance requirements. They provide ongoing alerts for upcoming state fees and other mission-critical documents, like your annual or periodic report filings. A registered agent can help your LLC stay in good standing with the Colorado Secretary of State.

Virtual mailboxes

Many registered agent services also offer virtual mailboxes that provide an additional layer of privacy and protection for your business. With a virtual mailbox, you will receive an actual physical address (not a P.O. Box) that you can use as your official business address on all legal, business-related documents.

Using a virtual mailbox keeps your personal address off public records while allowing you to run the business from anywhere in the world. All received mail will be filtered for junk, digitally scanned, and then shared with you through an online account that you can easily access at any time of the day. You no longer have to wait or fret over receiving mail. A virtual mailbox also bumps up your business's credibility.

LegalZoom's Virtual Mailbox plans start at just $29 per month. We are one of the few providers that will even store and ship necessary mail items to your home address.

Junk mail filtering

Many professional registered agents also act as mail filters. With LegalZoom’s Virtual Mail service, a registered agent can go through your mail, throw out spam mail, and identify what is important and needs your proper attention—saving you time and effort.

Formation services

Many registered agent solution providers also provide formation or incorporation services—the filing of your articles of organization or articles of incorporation with the state. Their expertise makes forming a legal business entity a breeze.

While a professional registered agent is usually familiar with Colorado's compliance and legal framework, they aren't attorneys and, therefore, can't provide legal or tax advice. For more expertise, you should contact an experienced small business attorney.

What are the legal requirements for a Colorado registered agent?

As per the Colorado Corporations and Associations Act, to serve as a registered agent in Colorado, one has to meet the following criteria:

• Be an individual, at least 18 years of age, with a primary residence in Colorado;
• Be a business entity in good standing with the Colorado Secretary of State;
• Have a physical address in the state (P.O. boxes aren't allowed).

The state law allows a domestic or foreign business entity to serve as a registered agent in Colorado as long as they have a primary business in the state.

You have the authority to name your spouse, of-age child, employee, a different business entity, or even your own LLC as your company's registered agent. Regardless of whom you appoint, the chosen registered agent must provide consent to their appointment as a Colorado registered agent by selecting the affirmation box on the Colorado LLC's formation paperwork. 

Why should you hire a Colorado registered agent?

Many startup business owners are keen to keep costs low and, therefore, want to be their own registered agents. While we totally understand that, there are plenty of reasons why it's smart to outsource this service. 

Legal compliance

A professional agent doesn't just open the mail for you. They keep you in the loop about important deadlines and issues that need your attention. Your business can fall out of good standing with the state if you fail to maintain your compliance requirements because you missed a tax or annual report deadline. This can result in additional fines or penalties, which is certainly something you want to avoid. Failure to maintain compliance can also hinder your ability to expand your business and secure external funding.

Reduced risks

A registered agent can also save you from financial risks and default judgments. Say you list yourself as the registered agent for your laundromat business, but then you need to step out for some bank work. A process server pays a visit and no one is there to receive the service of process paperwork. Your business can be handed a default judgment in a lawsuit because you weren't aware of the lawsuit in the first place. Hiring a Colorado registered agent can help you avoid these mistakes.

Enhanced privacy and protection

You'll also enjoy enhanced privacy as now all official communication, alongside unwanted solicitation, will be directed to the registered agent’s address and not your business or home address. An agent at a separate location can help you avoid unpleasant interactions in front of clients or family members.

A registered agent service also protects you against identity theft and other security breaches because now your home address is safe from public eyes.

Separation between business and personal life

Having a Colorado registered agent creates a separation between your business and your personal life. By keeping your personal address off formal documents, you decrease the risk of personal liability in case a lawsuit is filed against your company. 

Extra authority and credibility

People tend to take your business more seriously when you are working with other professionals. Using a professional registered agent in Colorado adds more authority to your business and creates a positive impression on clients, vendors, and investors.  

Who should hire a professional registered agent service?

A professional Colorado registered agent service is best for business owners who cherish privacy and professionalism and don’t want the hassle of dealing with this extra administrative task. Colorado registered agent services are also a great choice for businesses that:

• Have irregular business hours, like a bar that operates after 4 p.m.
• Involve extensive travel.
• Are foreign entities seeking to establish a presence in Colorado without investing in a physical location.
• Operate from home and don't want their home address to be part of the public record.
• Don't want to miss out on compliance notices like annual report deadlines.

Also, remember that having a proper physical address rather than a residential address on state documents adds a flair of professionalism and credibility to your business. 

How to hire a Colorado registered agent?

If you are asking, "Where do I find a registered agent?" We've got you covered. LegalZoom can serve as your registered agent in Colorado and other U.S. states. Just tell us a bit about the nature of your business, and we'll inform the state that we are officially serving as your registered agent. 

LegalZoom has a physical street address in the Centennial State that you can use for LLC formation paperwork to ensure your business or home address is safe and private. Be assured that there will always be someone available to accept the service of process documents, and we will immediately alert you of anything that needs urgent attention. Also, our unlimited digital document storage makes it easier to store all your crucial business documents.

Colorado registered agent FAQs

Can you change registered agents?

You most certainly can. You may have named yourself as the registered agent and find that the paperwork is too overwhelming or you find your selected Colorado registered agent service not up to mark. Don't worry. You can easily change whom you have appointed by completing the Statement of Change Changing the Registered Agent Information form online. Search for your business by name or business ID, click on your entity in the results, and update the registered agent details. 

LegalZoom can assist with switching your registered agent. We will even cover state fees and complete all the necessary paperwork if you appoint us as your agent.

Should you be your own registered agent?

You can, but it's not advisable. Being your own registered agent means additional responsibilities that can most certainly take your focus away from driving sales and running the business. Also, you'll have to be available at the mentioned address during normal business hours—which can be restrictive. When you are your own registered agent in Colorado, it's likely your home address will be accessible in state records and you may even get served at home. 

Should you hire a registered agent before forming your LLC?

You need a registered agent before you submit your LLC formation paperwork to the Colorado Secretary of State—this is non-negotiable. So, by those means, yes, you need to hire an agent before you complete all other steps to start a Colorado LLC. 

How much does a Colorado registered agent service cost?

A Colorado registered agent costs around anywhere between $35-$300 a year. The cost also depends on the services the company provides. Some business formation companies provide registered agent services for free if you decide to use them to set up your legal business entity.

Am I required by law to have a registered agent?

Absolutely. Colorado law requires you to appoint a registered agent to form a business and then to remain in good standing with the state government—which is essential to your long-term success.