What is a registered agent and do you need one

What does a registered agent do?

The registered agent is the company's official contact point with the legal system. It accepts service of process, meaning lawsuits and subpoenas, and receives official notices from the state, such as annual report reminders and tax notices. It must be available at its address during normal business hours so that papers can be delivered in person.

Is a registered agent required?

Yes. Every state requires LLCs and corporations to name one on their formation document and to keep one for as long as the company exists. The agent needs a physical street address in the state. Wyoming, for example, does not accept a drop box and accepts a PO box only in addition to a physical address. Delaware requires a Delaware street address.

Can you be your own registered agent?

Yes, if you live or have a business address in the state and can be there during business hours. The trade-offs:

• your address becomes part of the public record,
• someone must be available to receive papers, which can be delivered in front of staff or customers,
• if you move or travel for long periods, papers can be missed.

What does a commercial registered agent offer?

A company that acts as agent for many businesses. It provides the in-state address, receives papers, scans and forwards them, and often reminds you of annual filings. It is the only practical option for owners living outside the state, including owners outside the US. Commercial agents charge a yearly fee, which is often the largest recurring cost of a low-fee LLC.

What should you look for in an agent?

• Fast forwarding of papers, by email scan the same day.
• Reminders for your state's annual report or tax.
• A clear yearly price, with no automatic add-ons.
• Coverage in every state where you are registered, if you operate in several.

What happens if you have no agent?

If the agent resigns or its fee goes unpaid, the company may be left without one. States can then revoke the company's good standing or administratively dissolve it. Wyoming charges a $350 reinstatement fee for an LLC dissolved for having no registered agent, far more than the agent would have cost. See how to reinstate a dissolved LLC. Worse, a lawsuit served while there is no agent may go unanswered and end in a default judgment.

How do you change your registered agent?

File a change of agent with the state, often with the new agent's written consent. Fees are usually small. Wyoming, for example, charges $5 to appoint a new registered agent and office. Update the agent with the new details before cancelling the old one, so there is no gap.

What else should you know?

The agent's address is not a business address, and many banks will not accept it as one. See US bank accounts for non-residents. The agent is named on your formation document. See Articles of Organization explained.

This guide is general information. It is not tax or legal advice for your situation.