What is a Registered Agent for an LLC and Why Do You Need One?

A Registered Agent is someone or a company that accepts legal documents and official notices for your LLC.

This position may also be referred to as a Statutory Agent, Resident Agent, or Agent for Service of Process in some states. These words all relate to the same purpose.

What Does a Registered Agent Do?

In simple terms, a Registered Agent is responsible for receiving and forwarding important documents.

Registered Agents need to be present at their address during regular business hours to handle legal documents for your LLC.

Registered Agents forward documents to the LLC owners via mail or the Internet after obtaining them.

They are required so that, if your LLC is sued, the courts have a trustworthy address to which to send legal notices.

In many states, your Registered Agent also handles sending business and tax notices, payment reminders, and other important documents to you.

LLC Registered Agent Legal Requirements

By law, LLC Registered Agents must:

• Maintain a physical Registered Office (not a PO box)
• Keep regular business hours
• Accept legal documents on behalf of the LLC
• Forward these documents to the LLC promptly

Is a Registered Agent Required for My LLC?

Yes, you must identify a Registered Agent in your LLC creation forms in every state. You need to keep a Registered Agent on file for the duration of your LLC after it is formed.

This is a legal requirement across all 50 states.

Unfortunately, many LLC formation companies try to mislead you into hiring them as your Registered Agent by saying things like, "Your LLC needs a Registered Agent", without providing the full picture.

In reality, you have other options. You can be your Registered Agent or appoint a friend or family member instead of using the company that is pushing their services.

These companies often bury this information in the fine print during the checkout process. Many people don’t realize they’re paying extra fees for Registered Agent services, which are automatically charged to their credit cards each year.

The good news is, that you have several options for who can be your LLC's Registered Agent.

Who Can Be Your LLC's Registered Agent?

You have three choices for your LLC's Registered Agent:

1. You
2. A friend or family member
3. A Registered Agent Service, also known as a Commercial Registered Agent

Can I be my Registered Agent?

Yes, you can be your Registered Agent if you meet your state’s requirements.

However, remember that your name and address will be listed in public records.

To save money, you can act as your LLC's Registered Agent or ask a friend or family member who has a physical address in your LLC’s state.

If privacy is a concern and you want to keep your address off public records, hiring a Registered Agent Service is the best option.

Pro: Acting as your LLC’s Registered Agent will save you money.

Con: Your name and address will be publicly listed, and there are some risks to consider.

Why Use a Professional Registered Agent Service?

Registered Agent Services focus on handling legal mail for LLCs and usually costs between $100-300 per year.

Choosing a Registered Agent service is beneficial if:

• You want to keep your address private and off public records.
• You don't have a physical address in the state.
• You’re not available during regular business hours.
• You prefer not to handle the documents and related responsibilities.
• You need assistance with forming your LLC.

Registered Agent companies often provide LLC formation services as well. They can set up your LLC and assist with ongoing annual requirements.

Once you hire them, they will handle the Service of Process for your LLC and forward the documents to you at any address you choose. Many will also offer to send your documents by fax or email if you prefer.

What are the risks of not having a Registered Agent for my LLC?

Without a Registered Agent, your LLC could face fines and other problems, like losing its good standing with the state or even being dissolved.

If your LLC is sued and there’s no one to handle legal notices, the court might decide without you. This is called a default judgment, and it can happen even if you don’t know about the lawsuit.

That's why having a Registered Agent is essential for your LLC.

What if Your Registered Agent Information Is Incorrect?

If your LLC's Registered Agent information is wrong, you could face legal and financial problems. The courts might not be able to send you important documents, which could lead to a default judgment against your LLC.

Even if you don’t get important government mail because your Registered Agent details are wrong, your LLC still has to meet state requirements. This could cause your LLC to lose its good standing.

To avoid these issues, always keep your Registered Agent information up-to-date with the state.

How do I choose a Registered Agent?

Choosing a Registered Agent depends on whether you have a street address in the state where you’re forming your LLC.

If you do have an address in that state, you can be your Registered Agent. This is the easiest and most cost-effective option (it's free!).

What if I’m not in the same state where I’m forming my LLC?

If you don't have a street address in the state where you’re forming your LLC, you have a couple of options. You can either ask a friend or family member who does have an address there to be your Registered Agent, which won’t cost you anything, or you can hire a Registered Agent Service.

If neither you nor anyone you know has an address in that state, you’ll need to use a Registered Agent Service.

Check out the links below to see Registered Agent rules for each state:

Overview of Registered Agents

After selecting your LLC's Registered Agent, you'll provide their name and address on the LLC Formation Documents when filing with the state.

Don't stress about being "locked in" to one Registered Agent…

If you ever need to change your Registered Agent (or Registered Office), simply file a form with your state and pay a small fee.

If you decide to hire a Registered Agent Service, choose a reputable company—avoid those that use deceptive tactics to gain your business.