What Is a Registered Agent?

A registered agent is responsible for receiving legal and official documents on behalf of a business and forwarding them to the proper party. Many small business owners choose to appoint themselves or an employee as the registered agent, but using a service provides consistency and convenience.

A professional service company can serve as your registered agent in all states where you register to do business.

What Is a Registered Agent?

A registered agent is a person or business that the state designates to receive legal papers in case your company is sued (what lawyers call "service of process"), as well as business compliance notices and tax documents. You can choose to use an individual affiliated with your company as your registered agent or select a professional service like Northwest or LegalZoom.

If you choose to be your own registered agent, your name and address will become a public record in the state filings. This could jeopardize your privacy, particularly if you run a home-based business.

Another drawback of using your own address as the registered agent is that if you move or change your business, you must update the information with the state. A registered agent service that covers all 50 states can simplify this task for businesses that operate in multiple states. For example, Corporate Guides provides national registered agent services at an affordable price with patient customer support that includes US-based former accountants and attorneys.

How Does a Registered Agent Help My Business?

A registered agent acts as a buffer between your business and any legal proceedings that might occur. They will accept service of process on your behalf and forward it to you. They will also alert you of important deadlines and events. This frees up your time so you can focus on running your business.

Many online business services, like LegalZoom, IncFile, and Northwest Registered Agent, offer registered agent services for a small fee. They will also help you set up your business and assist with compliance matters.

If you have a business that operates in multiple states, it's a good idea to choose a registered agent that offers national service. This will ensure consistency and simplify the process of changing your registered agent when you expand into a new state. Additionally, it's much easier to keep track of renewal payments when it comes to one company rather than multiple different companies.

What Are the Requirements for a Registered Agent?

The requirements for a registered agent vary by state. However, in general the agent must have a physical address (not a P.O. box) in the state where your business is registered to operate and be available during normal business hours to receive important paperwork on behalf of the company. A professional registered agent service can help you comply with these requirements.

Most states require that a corporation or limited liability company have a registered agent, and many state laws also require that sole proprietorships and general partnerships have one as well. The reason is that the registered agent must be able to receive legal papers, such as lawsuits or tax notifications, on behalf of the company. It’s a good idea to use a trusted registered agent service so you don’t risk losing important documents or missing filing deadlines. You typically designate your registered agent when you register your business or incorporate, and most states have forms for changing the information if you change businesses.

Who Can Be a Registered Agent?

Essentially, any individual or business can act as your registered agent, so long as the person meets state requirements for residency and a physical address (PO boxes are not acceptable). It's possible you could even designate yourself as your own registered agent; however, there are some reasons to consider hiring a professional service instead.

The main reason is that your registered agent must be available during regular business hours to receive important legal documents, such as service of process for lawsuits or government correspondence. If you designate yourself as your own registered agent, you risk the embarrassment of having to receive these types of documents in front of customers or employees (or family, if operating a home-based business).

Hiring a professional registered agent service means there will always be someone available at the listed address to receive time-sensitive legal notifications. Moreover, these services often provide additional legal and compliance assistance for LLCs and corporations, which can help you stay in good standing with the state.