Statutory Agent

What is a statutory agent?

State laws require corporations and limited liability companies (LLCs) to appoint a statutory agent in order to officially register their business. Depending on where you live, your state may refer to a statutory agent as a registered agent, resident agent, or agent for service of process. While requirements also vary, the role of a statutory agent is generally the same.

A company's statutory agent serves as a point of contact for legal matters, such as litigation. They keep businesses updated on important legal documents and official correspondence with the Secretary of State or similar government body that oversees and administers business-related activities within a state.

Without a reliable statutory agent, businesses could miss sensitive legal notices, face potential fines or penalties, and even risk losing their good standing with the state. For this reason, it's important to appoint an agent you can trust to stay on top of service of process and business compliance matters.

In most states, you can act as your business' own statutory agent or choose to hire a statutory agent service. Generally, agents must be an adult or an authorized business with a physical address in the state. They also need to be available during normal business hours to accept correspondence on your behalf.

To learn more about this role and its responsibilities, read our in-depth article on statutory agents. 

Statutory agent FAQs 

Is the statutory agent the owner?

Business owners generally have the right to act as their own statutory agent. However, the owner would then need to publicly share their office address, remain available during business hours, and stay on top of sensitive documents and deadlines.  

Why do I need a statutory agent?

Put simply, states require businesses to designate a statutory agent in order to officially form their company within the state. That said, there’s a reason the role is mandatory. Statutory agents help businesses stay aware of legal actions against them and on top of local compliance laws. 

Is it worth using a statutory agent service?

That depends on your circumstances. Some businesses believe the price is worth the convenience, security, and privacy it provides. Working with a statutory agent service means that you can focus on your business, take business trips or spend time away from the office, and feel confident that you'll be alerted of any important documents that need your attention while your agent handles the rest.

What if the statutory agent isn't available when documents arrive?

That depends on the circumstances of the documents. If a statutory agent isn't available to receive a legal notice, the process server (professional who delivers court documents) may attempt substituted service.

This means that they may try to deliver the notice to someone else related to the business or publicly post the notice. If the business never receives the notice and doesn't respond in time, the business could face a default judgment, which may not be in its best interest.