Business entities like limited liability companies (LLCs), S corporations, C corporations, and some other types of business entity must name a registered agent to receive legal communications and other documents on behalf of the business.
What is a registered agent?
A registered agent is a person or business that will receive legal documents on behalf of your business, such as subpoenas, regulatory and tax notices, and correspondence.
In many states, lawsuits must be served in person. Having a registered agent makes this a clear and orderly process.
Your registered agent's name and address are publicly available, so outsiders know who should receive legal and business documents. And you can feel confident that there's just one contact point for any legal notices your business might receive.
Who needs a registered agent?
All formal business entities, such as an LLC or Corporation, must have a registered agent. Sole proprietorships and general partnerships are considered common law business entities. Because you don't have to file formal paperwork with the state to form a common law business, these entities don't need a registered agent.
You must name a registered agent when you file business formation paperwork with your state. If your agent's name or address changes in the future, you must file an additional form to update the state's records. You must have a registered agent in every state where your company is registered to do business.
What does a registered agent do?
A registered agent has just one job—to receive documents on behalf of the business and pass them on to the appropriate person at the business. Once you've chosen a registered agent, you can tell the agent who to notify if they receive lawsuits or other documents.
The agent's role sounds simple, but lawsuits, subpoenas, and notices tend to have strict deadlines. Missed deadlines can have both legal and financial consequences. As a result, it's critical to have an agent who is responsible and can be trusted to pass along information promptly.
Who can be a registered agent for an LLC or corporation?
There are few restrictions on who can be a registered agent, and the laws can vary slightly from state to state. In general, your agent can be any person who:
- Is at least 18 years old
- Has street address within the state
- Is physically present at that address during business hours
Your registered agent can also be a company registered with your state to provide registered agent services. Your business cannot act as its own agent.
You can name yourself, your spouse, or an employee as the registered agent for your business, but keep in mind that your agent must be someone who is at the listed address during business hours.
When to use a registered agent service
Many small business owners act as their own registered agent or name a friend, family member, or employee. It saves money, but it's not always a good idea. When choosing a registered agent, there are several reasons to consider a registered agent service instead:
- Privacy. If you or an employee is the registered agent, you risk the embarrassment of having a legal action served in front of customers, clients, or co-workers. Also, the agent's address is a public record, a potential concern if you have a home-based business or are planning to name your spouse as your agent.
- Consistency. If you list an individual as the registered agent, you'll need to update your registered agent information if there are any changes to the person's identity or address.
- Knowing the job will be done right. Registered agent services are experienced and professional, making it more likely that important documents will quickly get into the right hands.
- Multiple states. Multiple registered agents can be a hassle if you do business in more than one state. A service can act as your agent in multiple locations.
When starting a new business, choosing a registered agent may seem like a minor issue. But an agent serves an important role. Be sure your agent meets your needs and can do the job promptly and professionally.
Registered agent FAQs
What is a registered agent, and why do I need one?
A registered agent is a person or company that receives important legal documents for your business and makes sure you get them quickly. Every LLC, corporation, and partnership must have one by law in all 50 states. Think of a registered agent like a mail carrier for your business's most important mail. They accept lawsuits, tax notices, and other official papers from the government or courts. Without one, your business could get shut down by the state or miss important legal deadlines that could cost you thousands of dollars. The registered agent must have a real street address (not a P.O. box) in your state and be available during normal business hours Monday through Friday. This ensures someone is always there to sign for urgent documents when they arrive.
Can I be my own registered agent instead of hiring a service?
In most states, you can be your own registered agent if you meet the requirements. Generally, you must be at least 18 years old, live in the state where your business is registered, and be available at your business address during all regular business hours. The biggest problems with being your own agent include missing important documents when you're sick, on vacation, or out of the office.
What happens if I don't have a registered agent or mine stops working?
You can face different penalties for not having a registered agent. Most states charge fines and put your business in "bad standing," which can make it harder to secure loans or renew permits. If you ignore the problem for too long, the state will dissolve your business completely. This means your business legally stops existing, and you lose all the legal protections that come with being an LLC or corporation.
How much does a registered agent service cost, and what do I get?
Professional registered agent services typically cost between $100–$300 per year, depending on what features you want. Basic services just receive and forward your documents, while premium services include extras like compliance reminders and document storage. LegalZoom’s Registered Agent service costs $249 per year and sends you alerts for important mail received, scans and uploads mail for digital access, keeps you updated through a Compliance Calendar, and gives you unlimited cloud storage for all business documents.
Do I need a separate registered agent in each state where I do business?
Yes, you need a registered agent in every state where your business is officially registered to operate. This is called foreign registration when you register your business in states other than where you first formed it. For example, if you started your LLC in Delaware but want to do business in California and Texas, you need registered agents in all three states. Each state has its own laws and needs a way to deliver legal documents to you within their borders. Many registered agent companies operate in all 50 states, so it’s possible to use the same service everywhere. This makes it easier to manage and often costs less than finding separate agents in each state.
How do I choose the best registered agent service for my business?
Choosing a registered agent service for your business is largely a matter of personal preference. Look for a service that has been in business for several years and offers the features you need at a price you can afford. The most important things are reliability (i.e., they never miss documents), good customer service, and secure document handling. Check if they provide online access to your documents, email notifications when mail arrives, and help with compliance deadlines. If you plan to expand to other states, make sure they operate nationwide. Read reviews from other customers to see if they're satisfied with the service. Compare prices, but remember that the cheapest option isn't always the best. A few extra dollars per month is worth it for better customer service and more reliable document handling. Look for companies that offer guarantees or trial periods so you can test their service risk-free.
What types of documents will my registered agent receive?
Your registered agent will receive all official legal and government documents sent to your business. The most common ones are lawsuit papers, tax notices from the IRS and state agencies, and annual report reminders from your state. Other documents include subpoenas (orders to appear in court or provide information), wage garnishment notices if you owe money, and compliance notices about business licenses or permits. Government agencies also send important updates about law changes that affect your business. Your registered agent must forward these documents to you immediately, usually within 24 hours.
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