How Much Does It Cost to Have a Registered Agent?

Standard registered agent fees

If your business meets the legal requirements to designate an owner or employee as the registered agent, doing so costs the business nothing. If you want to designate yourself or an employee as a registered agent, you have to meet the following requirements:

• Must be 18 or older 
• Available during regular business hours 
• Have a physical address in the state where you are doing business

A business must designate a state agency as its registered agent in a few states, although nothing prohibits using another agent.

For example, New York requires a business to designate the New York Secretary of State as the registered agent in their original business formation documents. You can later switch to another registered agent, although there is a fee for the change.

Using a state agency as your company's registered agent does not cost anything. Still, the only service the agency provides is forwarding any legal papers to your business at your mailing address.

While the cost of registered agent services can vary, an RA can cost anywhere from $100-$300 per year. The difference in cost will depend on if you decide to purchase any of the other services your registered agent provides. For an online legal provider such as LegalZoom, Registered Agent services cost $249.

Additional fees

If a business is organized in Nevada and conducts business in California, it is a domestic entity in Nevada and a foreign entity in California. The business must file formation documents in Nevada and then file documents in California to register as a foreign entity. It must also have registered agents in both states.

If a company has a business office in the state where it is formed or registered, it may designate an owner or employee of the business as the registered agent. However, the agent and office must meet the state requirements for a registered agent, such as being properly staffed during regular business hours. The company must hire an outside registered agent if no company office meets the requirements.

Registered agent requirements

The requirements for a registered agent are determined by the law of the state where your business is organized or registered. Determining whether you need a registered agent is how your business is structured.

Depending on the state, you may need a registered agent for a general partnership, limited partnership (LP), limited liability partnership (LLP), or limited liability limited partnership (LLLP).

A business entity is known as a domestic entity in the state where it is formed, or organized. A business that is formed in one state and engages in business activities in another state is known as a foreign entity in the other state.

For example, if a business is organized in Nevada and conducts business in California, it is a domestic entity in Nevada and a foreign entity in California. The business must file formation documents in Nevada and then file documents in California to register as a foreign entity. It must also have registered agents in both states.

Registered agent services

The basic, essential registered agent service is to receive legal documents on behalf of the business. A registered agent is required by law so that the public and the government have an official place to serve lawsuits and other legal documents on the business entity. To fulfill this purpose, there are generally two requirements for a registered agent:

• To have a street address in the state
• To have a responsible adult at that street address during regular business hours

If legal documents are received, the obligations of the registered agent are to promptly notify the business and forward the documents to the appropriate person.

Registered agent companies typically also offer additional services, including:

• Preparing and filing registration documents
• Sending reminders when annual reports or license renewals are due
• Storing documents, such as registration papers and annual reports

Such supplemental services may be included in the registered agent's basic fee, or they may be offered for an additional charge.

Registered agent fees and tax deductions

The fees paid to a registered agent are tax-deductible expenses. This includes the fees paid for the basic services of the registered agent as well as any additional fees for supplemental services. Even if your company is not legally required to have an outside registered agent but chooses to have one, the fees are still tax-deductible.

Registered agent services FAQs

How much does a registered agent service cost?

A professional registered agent typically costs between $100 and $300 per year. The exact price depends on what extra services you want beyond just receiving mail and legal documents. Basic services that only handle mail forwarding usually start around $99 per year. Premium services that include things like compliance reminders, document scanning, and cloud storage can cost up to $300 annually. 

Can I be my own registered agent to save money?

Yes, you can serve as your own registered agent for free if you meet three basic requirements. You must be at least 18 years old, live in the same state where your business is registered, and be available at a physical address during normal business hours (9 a.m. to 5 p.m.). However, being your own registered agent means you must always be available to receive important legal documents during business hours. If you travel for work, take vacations, or work irregular hours, you could miss critical legal notices like lawsuit papers. 

What happens if I don't have a registered agent?

Operating without a registered agent can result in serious penalties and legal problems for your business. Most states require LLCs, corporations, and partnerships to have a registered agent, and failing to maintain one can lead to fines, loss of good standing status, or even dissolution of your business. The specific penalties vary by state, but they can include fines ranging from $25 to several hundred dollars, plus the cost and hassle of getting your business back in good standing with the state.

Do I need a registered agent in every state where I do business?

Yes, if your business operates in multiple states, you typically need a registered agent in each state where you're required to register. This is called foreign entity registration. Each state where you register will require its own registered agent, which means separate annual fees for each location. Some registered agent companies offer multi-state packages or discounts for businesses operating in several states. These bundled services can help reduce the overall cost compared to hiring separate agents in each state.