4 min read
Chris Daming, J.D., LL.M.
:
Have you ever heard the term “registered agent” and nodded along, even though you have no idea what it means? You’re not alone. For lots of new business owners and entrepreneurs who are thinking about creating an LLC, this is unfamiliar territory.
In this post, we’re going to cover 5 common questions that new startups have about registered agents. With these answers, you’ll have a solid understanding of what these “registered agent” things are all about.
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Registered agents do two main things: (1) receive important docs on behalf of the business that include mail sent by the state and other official government notifications; and (2) accept service of process on behalf of your business if it is being sued. Having a registered agent is a crucial requirement for all businesses, as it ensures that there is an official point of contact on file for your company. Just like filing articles of organization establishes your LLC, a registered agent keeps it connected. This means that the state and the public have a designated individual or entity to send important legal notices and documents regarding your business.
By having a registered agent in place, you can rest assured that you will not miss any critical notifications or communications that could impact your business operations. It provides a level of transparency and accountability, demonstrating that your business is compliant with state regulations and has a reliable representative for legal matters. So, whether you're just starting out or already established, having a registered agent is a fundamental aspect of maintaining a strong legal foundation for your business.
A registered agent can be an individual or a business, but it must be located in the same state where your business is registered or any state where you file an application for authority to do business. This requirement ensures that there is a designated representative available to receive important legal documents and notifications on behalf of your business in a timely manner.
By having a registered agent in the same state as your business operations, you can ensure seamless communication with government agencies and stay compliant with state regulations. Additionally, having a registered agent in place provides a level of professionalism and credibility to your business, as it shows that you have a reliable point of contact for legal matters within the state where you are conducting business.
In addition to registering your business with the state, it is essential to designate a registered agent when filing an application for authority to conduct business in another state. It's also important to understand when to register your LLC in another state and designate a registered agent accordingly. This requirement ensures that your business has a designated representative to receive important documents and legal notifications in the new state where you plan to operate.
By designating a registered agent in each state where your business is active, you can stay compliant with regulations and maintain efficient communication with government agencies. This step is crucial for businesses looking to expand their operations across state lines and establish a solid legal foundation in multiple jurisdictions.
Nope. Being a registered agent doesn’t entitle the registered agent to any ownership or right to participate in the company. A registered agent’s job is solely to collect legal and tax documents on behalf of the business and to accept service of process if your company is sued.
This means that while they play a crucial role in the administrative and legal aspects of your business, they do not have any decision-making authority or ownership stake in the company. Their primary responsibility is to ensure that your business stays compliant with state regulations and receives important notifications in a timely manner. So, rest assured that your registered agent is there to handle the legal paperwork and notifications, allowing you to focus on running and growing your business.
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Yes, many business owners choose to be the registered agent for their own business. But there are some drawbacks here:
If you’re looking to hire a registered agent, there are plenty of options you can find by Googling “registered agent services.” We like Zen Business the best of all the ones we've tried (easier onboarding and clean interface) -- but they're all pretty similar.
One good way to think of it is -- if you're a business owner and are only doing business in your home state, usually you'll be the registered agent. But if you need to file for foreign registration in a different state, it usually makes sense to hire a different company to serve as your registered agent in that state.
Now that you’ve got a better sense of what registered agents are and why they matter, you should feel more confident in designating one for your new business. If you're ready to learn how to start an LLC, check out our detailed guide for help or use Legal GPS for Business to guide you.
The biggest question now is, "Do you need a lawyer to start an LLC?” For most businesses and in most cases, you don't need a lawyer to start your business. Instead, many business owners rely on Legal GPS Pro to help with legal issues.
Legal GPS Pro is your All-In-One Legal Toolkit for Businesses. Developed by top startup attorneys, Pro gives you access to 100+ expertly crafted templates including operating agreements, NDAs, and service agreements, and an interactive platform. All designed to protect your company and set it up for lasting success.
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Chris Daming, J.D., LL.M. : Aug. 4, 2024
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