What Is a Registered Agent?
The majority of states require you to have an LLC registered agent. Provided they meet the state’s criteria, the agent can be a professional service, yourself, or a colleague. Registered agent services come with a number of benefits.
You probably know by now that you will need a registered agent if you’ve recently decided that an LLC, or limited liability company, is the best type of business structure for your business and have started preparing your formation papers.
Registered Agent: Definition
A registered agent is a person or business entity that accepts tax and legal documents on behalf of your business. Alternatively, a registered agent may be called a resident agent or a statutory agent.
What Is a Registered Agent for an LLC?
The LLC registered agent is the individual or entity designated by the LLC to receive service of process notices, government correspondence, and compliance-related documents on the LLC’s behalf.
For an LLC, being a registered agent only serves one purpose: to be an agent for service of process, as well as to receive important correspondence on behalf of the LLC. Additionally, the registered agent must forward such materials to the LLC within a reasonable timeframe.
What is the Purpose of a Registered Agent?
A registered agent’s main purpose is not just to receive official mail on behalf of your business, but to help you maintain corporate compliance by informing you of legal notices and sending reminders for filing annual reports. In essence, registered agents act as gatekeepers for business entities so you can take action and resolve potential issues as quickly as possible.
If you run a small business or a large corporation, your designated registered agent should be expecting to receive the following information for you after your LLC is formed:
- The tax forms
- The legal documents
- Official government correspondence
- Notice of a lawsuit – Summons (Service of Process)
Why a Registered Agent Is Important
It is a requirement for opening an LLC to have a registered agent. The formation papers cannot be filed without one. If you don’t have a registered agent who accepts documents and delivers them to you, you will miss out on crucial notices for your business.
If you do not have a registered agent, your LLC faces the following problems:
- Fines imposed by the state
- Not being able to file a lawsuit
- Not being able to expand your business into other states
- Financing denied
- Dissolution of your business
Can I be My Own Registered Agent?
You can be your own registered agent for your business. You could also choose to designate an officer or member of your business, or even a friend you trust, as long as the person being elected meets the following registered agent requirements:
Registered Agent Requirements
To be eligible to become a registered agent, one must meet a few requirements. In order to be a registered agent for an LLC, you must be a resident of the state where you registered your LLC.
Providing a physical address for document delivery is also necessary for a registered agent. Therefore, a PO mailbox is not acceptable.
Although these requirements are simple, it’s important to consider who you should designate as your registered agent.
Designating Yourself or Another Member of Your LLC
At first, glance, designating yourself or another member of your LLC as your registered agent may seem like a good idea. However, there are a few things you must keep in mind.
In the first place, registered agents must always be available to receive service of process notices, government correspondence, and other important documents. The registered agent must therefore always be available at the physical address you registered during normal business hours.
In the event that the registered agent is unavailable-this could occur if the person you designated either takes a vacation or goes off-site for an appointment with a client-delivery cannot be made, and the consequences can be quite severe.
What is the Best Registered Agent Service?
Getting a third-party registered agent service benefits your LLC in several ways but you may wonder, “How do I select one?” In addition to having a legitimate presence in the state where your LLC is located, we suggest you find a national registered agent with the following characteristics:
- Compliance management: reminders that annual reports are due and other important deadlines for business entities.
- Document management: Scan all official legal documents locally, so you can access them from your online business bank account.
- Availability: A customer service team that can answer any questions you may have about your company over the phone or online.
- Thorough coverage: Provide registered agent services throughout all states.
Wise Business Plans – Best Registered Agent Service
The registered agent services offered by Wise Business Plans are among the best and most affordable in the industry. Besides offering a worry-free guarantee, they also offer a service in which they file your annual report and other compliance documents for you.
Our Registered Agent Services will be an add-on service of $199.00 (per year) on top of the business formation service. (If needed be)
The excellent customer service at Wise Business Plans makes it stand out from the competition. Their customer service representatives are highly knowledgeable about company formation and business maintenance.
FAQs:
A registered agent is an individual or entity designated to receive legal and official documents on behalf of a business. They serve as a point of contact between the business and the state government, ensuring timely receipt of important correspondence, such as legal notices, tax forms, and other official documents.
A registered agent is typically required by law in most jurisdictions to maintain a business’s legal compliance and ensure proper communication with the state. Having a registered agent ensures that important documents and legal notifications are delivered promptly, allowing the business to respond in a timely manner.
In many cases, business owners can act as their own registered agent if they meet the requirements of the jurisdiction. However, it’s important to consider the responsibilities and availability associated with the role. Alternatively, businesses can hire a professional registered agent service to fulfill this role.
The qualifications for a registered agent may vary depending on the jurisdiction. In general, a registered agent must have a physical address within the state where the business is registered and be available during regular business hours to receive legal documents and official notices.
Yes, businesses have the flexibility to change their registered agent if needed. The process for changing the registered agent typically involves filing the necessary forms with the state and notifying all relevant parties. It’s important to follow the specific procedures outlined by the state or jurisdiction where the business is registered.
