Key takeaways:
- States require LLCs and corporations to have a registered agent to receive service of process and other legal documents
- Appointing the wrong agent carries significant risks, such as risk of a default judgment.
- The right service provider can ensure timely receipt of important documents and other benefits.
Most states require LLCs and corporations to maintain a registered agent in the state where they’re registered. Choosing the right registered agent is a critical step for any business, whether you're forming an LLC, expanding into a new state, or replacing an existing agent.
What is a registered agent?
A registered agent is a designated individual or service company responsible for receiving legal and government documents on behalf of your business. This includes service of process (notice of a lawsuit), tax notices, and compliance reminders.
Who can be a registered agent?
Registered agent requirements vary by state. Generally, the agent can be an individual or a professional service provider. They must have a street address to physically receive legal documents. P.O. Boxes are not allowed. The registered agent should also be available during standard business hours, Monday to Friday, from 9 AM to 5 PM, throughout the year.
Individuals must be at least 18 years old and a resident of the state in which the business is registered. For example, an individual serving as a registered agent for a Florida business must be a Florida resident. For a professional service provider to serve as a registered agent, they must have the legal authority to conduct business in the state.
To appoint a registered agent, you must include the agent's name and physical street address in your state's formation documents (such as the articles of organization or incorporation).
Should I be my own registered agent?
Your registered agent plays a direct role in keeping your business compliant, protected, and responsive to legal or government actions.
It might seem easy and cost-effective to choose someone within your company, such as yourself or an office manager, to handle this role. But keep in mind, it also means taking on additional responsibilities and potential risks, especially if that person isn’t always available.
One of the main responsibilities of a registered agent is to receive service of process. If your registered agent isn’t available, a lawsuit can still move forward against your company. If the person filing the suit can’t reach your agent, they may be able to serve your company in another way. When that happens, you can miss your chance to respond and defend yourself, and end up losing a lawsuit by default.
A registered agent is also responsible for receiving wage garnishment orders, liens, state government correspondence, and more. Handling legal papers and important documents is a big responsibility. If you don’t manage them properly, it can put your business at risk. Selecting the right registered agent helps ensure you never miss time-sensitive legal notices, protects your compliance standing, and minimizes the risk of default judgment.
Also remember, an agent's address is public, which means anyone can see it. If you work from home, you’ll be exposing your personal address.
