When you start a new business having a registered agent will keep your business organized and make sure that you never miss your important paperwork. Let's take a look at registered agents in the Lone Star State.
updated November 21, 2023 · 4min read
Operating a corporation, LLC, LP, LLP, or LLLP in Texas requires the designation of a "registered agent" (or RA) with the Texas Secretary of State.
A registered agent is designated by a business for the purpose of receiving official legal documents, such as lawsuit papers, subpoenas, and other important notices. The RA must have a Texas street address, which is called the registered office.
Texas law requires a registered agent and registered office for every corporation, limited liability company (LLC), limited partnership (LP), limited liability partnership (LLP), and limited liability limited partnership (LLLP) that is:
An entity that fails to appoint or maintain a registered agent is subject to termination of its authority to conduct business in Texas. Also, the Texas Secretary of State becomes the agent for service of process, which can delay or prevent the business from receiving vital legal notices.
The duties of an RA are to:
RAs sometimes offer additional services, such as preparing and filing registration documents, sending reminders when annual reports or license renewals are due, and keeping documents.
A registered agent can be an individual person who is a Texas resident, or a business entity that provides RA services and is authorized to do business in Texas (but a business entity may not serve as its own RA). Your two choices are:
Whether you choose an "in-house" RA, or hire an outside RA, it is important to designate one that can be relied upon to notify you promptly when important legal papers are received.
If you designate an owner or employee of your company as the RA, you will save the $50 to $500 annual cost of an outside RA and you will immediately know of any lawsuits or other important matters. However, there may be disadvantages, such as:
If your business does not have a regular office with a street address in Texas that is staffed during normal business hours, you will have no choice but to hire an outside RA.
Even if you do have the required street address and staffing, the advantages of hiring an outside RA include:
A registered agent will be designated in the document that is filed with the Secretary of State's office to form or register your business entity.
The RA must consent to serve as the RA by completing an Acceptance of Appointment and Consent to Serve as Registered Agent (Form 401-A), either in electronic or written form. This signed consent should be kept with your company's records.
If the RA changes, a Statement of Change of Registered Office/Agent (Form 401) must be filed with the Secretary of State. If the RA's address changes, either Form 401 is filed by the entity, or a Change by Registered Agent to Name or Address (Form 408) is filed by the RA.
by Edward A. Haman, Esq.
Edward A. Haman is a freelance writer, who is the author of numerous self-help legal books. He has practiced law in H...
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