Registered Agent

Registered agents are individuals(or registered businesses) who are designated to receive important notices and documents on behalf of your company.

They are the point of contact for Secretary of State and other state/federal agencies. Your registered agent has to be physically located in your selected state.

And it is legally required for you to have a registered agent. There is no way around it.

Why is it so important to have a registered agent?

Because, after you form your company, the Secretary of State and other governmental agencies need an official way of reaching out to you. They need an official point of contact within the state.

All the important documents are first received by your registered agent and then forwarded to you.

Here are some of the things registered agents do:

• They receive service of process, government correspondence, compliance documents and other official mails on your behalf.
• Accept & forward Annual report and tax notices
• File annual reports with the state (optionally)
• Handle all official documentation from the secretary of state

If that seems like a lot of important responsibilities, indeed it is.

Does that mean you always need a registered agent?

Short answer: Yes.

For all business types

It is legally mandatory to have a registered agent for:

• LLC
• C-Corp
• Limited Partnership (LP)
• S Corporation
• C Corporation
• Limited Liability Partnership (LLP)
• Nonprofit corporation

For all 50 states

Whichever state you have registered your entity in, you will need a registered agent. They are referred to as resident agents, service of process agents, statutory agents, or other names.

Although every business requires a registered agent, not every random person can be a registered agent.

There are a few requirements specified by the states, that need to fulfilled by a registered agent.

They are:

• Registered agents must have a physical office space in the state. Not just PO boxes.
• Registered agents must reside in the state or should be a business approved to provide registered agent service in the state.
• Registered agents must be available during normal business hours to receive tax forms, legal and official documents.

If having a registered agent is that important, can I be my own registered agent?

Yes.

Well, technically, there's nothing stopping you from being your own registered agent. You can even save a few hundred bucks.

But, do you WANT to be?

It will just add to your list of responsibilities, as a business owner.

There are some reasons why most owners do not like to be their own registered agent:

• Contact details of the registered agent will be made public.
• You need a physical office in every state you operate.
• You need to be available during normal business hours 5 days a week.
• If you change your address, you will have to notify the state and file some forms.

In short, if you become your own agent, you might save some dollars. But the repercussions and penalties of failing to perform your duty as a registered agent far outweigh this savings.

So, why even bother to do it yourself, when there are several companies offering registered agent services.

Speaking of which, what happens if you don't have a registered agent?

Let's find out.

What if you don't have a registered agent?

Yeah, it is bad.

That is why registered agents are so important.

Now, let's understand registered agent's address. There seems to be a bit of confusion about it.

Registered agent address is the address of your registered agent. No surprises here. But it is NOT the only address for your business.

Principal business address is considered to be your base of operations. It is required when you enter into legal contracts, opening bank & merchant accounts, receiving invoices, bills and licenses, and communicating with your customers.

You can legally have the same address for both. But, your registered agent should let you use their address as a principal business address. Or your principal business address provider should be able to perform the duties of a registered agent.

There are companies that offer you both these as a combined service.

Think of your registered agent address as the super-critical address that receives all your important documents.

And think of your principal business address as the official address of your business that you put on your website and where you receive your general business mail.

Your principal business address can be your home address, co-working space, virtual office or even a mailbox provider. It is not a legal requirement in most states.

Some states like Wyoming require you to mention your principal business address during the process of business registration.

Make sure you plan the type of addresses you want during the time of formation/incorporation.

What about virtual offices, mailbox providers and PO boxes?

A very popular topic: paying yourself.

All your effort, sweat and time put into growing your business.

Now, it's time to reward yourself.

There are mainly 3 ways of taking money out of an LLC: Making a member's draw, taking a salary or through dividends.

The last two methods are almost exclusively meant for LLCs elected as a corporation.

Now, after registering your business, you may feel like changing your registered agent.

Maybe you found another service provider who has a better package deal.

Or you may have found a cheaper service.

Whatever your reason is, you can change your registered agent by filing some paperwork with your state.

In general, the process goes like this:

• Find a new registered agent.
• File special forms or an amendment with the Secretary of State. It can be done online in most states. But some need to be done in person or by mail.
• Costs $0 - $50 to file
• Notify your old registered agent about the change.

As an example, here is how it happens in Delaware & Wyoming.

As you have seen, registered agents have a critical duty to perform. In most practical cases, you will think about your registered agent only when they don't perform their job.

And that's not going to be a pretty situation to be in.

It is far easier to have someone else as your registered agent instead of you becoming your own registered agent. That will leave you room to focus on growing your business.

FAQ