A registered agent is a company’s designated point of contact for receiving official legal and tax documents, such as compliance forms and government correspondence. Limited liability companies (LLCs) and corporations are legally required to have a registered agent to ensure the business remains accessible for any legal matters.

Below, we explain what you need to know about registered agents, including what they do and how to choose the right person for the job.

What’s in this article?

• What does a registered agent do for an LLC?
  
• Why does an LLC need a registered agent?
  
• Who can be a registered agent for an LLC?
  
• How to choose the right registered agent for an LLC
  
• Can an LLC change its registered agent?
  
• What if an LLC doesn’t have a registered agent?
  
• Does an LLC need a registered agent in every state where it does business?
  

What does a registered agent do for an LLC?

A registered agent for an LLC acts as the company’s official point of contact for receiving legal documents and important government notices. These might include service of process (such as a lawsuit), tax forms, and other compliance-related communications. The registered agent handles these documents and forwards them to the LLC. Having a registered agent is a requirement for businesses because it allows them to stay compliant with state requirements.

Why does an LLC need a registered agent?

A registered agent is a legal requirement for LLCs across the US. A registered agent gives the state a consistent, official point of contact with the company for important legal and tax documents. For example, if the LLC is sued, the registered agent will receive the legal documents and notify the company.

A registered agent also ensures that someone is available during business hours to receive documents. This frees the business owner from needing to be at a specific location at all times. Having a registered agent also allows LLC owners to maintain privacy. Instead of using their personal address on business documents, they can use the registered agent’s official address.

Who can be a registered agent for an LLC?

A registered agent for an LLC can be an individual or a business entity, but they must meet certain requirements. If the agent is an individual, it can be the owner of the LLC, a trusted employee, or a friend or family member, as long as they:

• Are at least 18 years old

• Have a physical address in the state where the LLC is registered (not a P.O. box)

• Are available during normal business hours to receive official documents

LLCs can also hire a registered agent service. This can be especially helpful if a business owner wants additional privacy or convenience or if a business operates in multiple states. In some cases, another business entity – such as a law firm – could also serve as the registered agent, as long as it is authorised to do business in the state where the LLC is registered.

How to choose the right registered agent for an LLC

If you have a physical address in the state where your LLC is registered and you’re available during normal business hours, you can be your own registered agent. This saves money on fees and gives you more control. If you value privacy and flexibility, a professional service might be a better choice.

Here’s a closer look at this decision process:

• Privacy: If you don’t want your personal address on public records or you simply want more privacy, a registered agent service can be a good option.

• Convenience: If your LLC operates in multiple states or you’re frequently out of the office, a professional service can be a helpful way to ensure someone is available during business hours at all locations.

• Cost vs. benefits: Registered agent services typically charge a yearly fee, so you’ll want to weigh the convenience and privacy they offer against the cost. For many, the peace of mind is worth the price, but if you’re a smaller operation, being your own agent might save money.

• Reputation and reliability: If you choose a registered agent service, make sure they’re established and responsive and have good reviews.

Can an LLC change its registered agent?

Yes, you can change your LLC’s registered agent, and the process is straightforward. Here’s how it usually works:

• Check your state’s requirements: Every state has its own process for updating your registered agent information. Start by checking with your state’s business filing office (usually the secretary of state). Some states let you do this online while others require you to submit a form.

• Fill out the required form: Typically, you need to complete a form called “Change of Registered Agent” or something similar. Include details about your current agent and the new one. In some states, the new agent might need to sign the form to confirm they’re accepting the role.

• Pay the filing fee: Most states charge a small fee to process the change, usually ranging from $10 to $50 USD. Include your payment when you file the form so there are no delays.

• Submit the form: Submit the form online, by mail, or in person, depending on your preference and state’s policies. Once it’s filed, the change typically applies right away or within a few business days.

• Notify your old registered agent: Tell your former registered agent you’ve made the switch so there’s no confusion about where future documents should go.

What if an LLC doesn’t have a registered agent?

For an LLC, failure to designate a registered agent can lead to serious problems. These can include:

• Loss of good standing: Most states require LLCs to have a registered agent to remain in compliance. If you don’t have one, your LLC could fall out of “good standing” with the state. This can lead to fines, penalties, or the suspension or dissolution of your LLC.

• Missed legal documents: Without a registered agent, your LLC might miss important legal notices, such as lawsuits, subpoenas, or tax forms. If you don’t respond to these documents in time, you could face default judgments or other legal consequences.

• Delayed business operations: If your LLC loses its good standing, it can be more difficult to renew business licences, enter into contracts, or acquire financing. In some cases, your LLC could be barred from conducting business in the state until the issue is fixed.

• Potential liability issues: Without a registered agent, you risk personal liability if you don’t receive legal documents on time. This can happen when a lawsuit isn’t properly served, and you don’t have the chance to defend yourself. The court might enter a judgment against your LLC, which can put your assets at risk.

Does an LLC need a registered agent in every state where it does business?

Yes, if your LLC does business in multiple states, you need a registered agent in each state where your business is registered or “foreign qualifies” to operate. This is a legal requirement, and failure to have an agent where you operate can lead to fines and other penalties for non-compliance.

When you do business outside your LLC’s home state, you typically have to register as a “foreign” LLC in that state. As part of the process, you need to designate a registered agent with a physical address in that state. You can either designate different registered agents in each state or hire a national registered agent service to act as your agent in multiple locations.