A registered agent is an individual or entity chosen by an entity like an LLC to be their intermediary agent for communication with the government, service of process, and any compliance documents for the business. Essentially a registered agent represents the LLC for matters not internal to the LLC.
For most states LLCs, partnerships, and corporations are required to appoint a registered agent when forming their businesses. This registered agent is usually appointed when the business’ Articles of Organization are officially filed with the government.
This registered agent then consistently has a role in the upkeep of the legal entity, including receiving items like tax forms, legal documents, summons, and more for the LLC. It is extremely important that the registered agent of an LLC stays up to date with all necessary functions of the LLC in order to keep the business in good legal standing and avoid any unnecessary losses due to items like a missed summons or government document.
There are a few different options for choosing a registered agent for your business, keep reading to decide which is best for your situation.
The first option is to appoint yourself as the registered agent for your business. This can be a good choice for reliability, but can also end up taking more time out of your day than some would like, especially for an individual as busy as a small business owner.
It is also possible to designate another member of your business or even a close friend as the registered agent. However, this does have some additional requirements, including that the person elected is 18 years or older, has an address in the state of formation, and is available in-person during business hours if necessary.
Another option is to go through an online registered agent service. These services provide qualified and reliable registered agents for a reasonable charge and are often worth the money both for one’s time and for the peace of mind that comes with a professional at work.
The use of a professional service ensures complete compliance with the law for your business, and is generally recommended for non-professionals who require a registered agent for their business.
A registered agent is a necessary part of operating a business of any size and unreliable registered agent can be detrimental to the legal standing and functionality of a business. As such, it’s very important that a registered agent be reliable and capable of performing all the necessary duties for the business they represent.