When you form a corporation or an LLC, you’ll be asked to name a registered agent. But what's a registered agent and what do you need to know to choose one?
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by Jane Haskins, Esq.
Jane has written hundreds of articles aimed at educating the public about the legal system, especially the legal aspe...
Updated on: October 27, 2023 · 3 min read
Suppose you’re forming a corporation, LLC, or other business entity. In that case, you’ll need to select a registered agent for your business and provide the agent’s name and address on the formation documents you file with the state.
Here’s what you need to know before you choose an agent.
Simply put, a registered agent is a person or service designated to receive mail for a business entity. A registered agent ensures that your business doesn't miss important paperwork like lawsuits, tax notices, and other business documents.
To make it easier to determine who should receive important paperwork for a corporation or LLC, all states require business entities to keep the name and address of a registered agent with the Secretary of State.
In addition to lawsuits, registered agents may receive subpoenas, tax notices and other official correspondence. They are responsible for passing these documents along to the appropriate person at the corporation or LLC.
Corporations and LLCs must have a registered agent in each state where they are registered to do business.
Registered agent requirements vary slightly from state to state, but there are a few general rules:
Naming an employee or owner to act as a registered agent for your business can save money on registered agent fees and give you the comfort of knowing that legal documents will go directly to you.
However, acting as your own agent has numerous downsides, including:
Your registered agent’s responsibilities don’t end with accepting lawsuits and other documents on your behalf.
The agent is also responsible for getting the documents into your hands promptly. If your agent neglects to do this, you can lose a lawsuit through default or be subject to court sanctions for ignoring a subpoena.
For this reason, choosing a reputable agent with a track record of providing registered agent services is important.
If you are registering to do business in multiple states, consider hiring an agent who can act as your agent in all those states.
Your registered agent plays an important role: ensuring that lawsuits, court documents and notices are brought to your attention promptly, so you can act on them and avoid default judgments, fines, and penalties.
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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