Get a Registered Agent
The right registered agent is critical to your business’ success. If you choose the wrong person or entity to act as your registered agent, you could lose a civil court case against you before you even know it’s been filed. Let’s talk about what a registered agent is and why you need one to do business.
What is a Registered Agent?
A registered agent is a person (or sometimes a registered business) who accepts legal or state mail on behalf of your company, then forwards the legal or state mail to you.
When we say “legal mail,” we’re mostly thinking of service of process notices. When you get a service of process notice, that typically means someone is suing your business and you have to respond. If you don’t respond, the court could enter a default judgment against your company.
Other mail your business gets could include notifications from the state. For example, many states have annual filings requirements that you might be notified of through your registered agent. Or, if your state has a franchise tax, your registered agent might receive a notice from the Secretary of State’s office that taxes are due soon.
Why Do I Need to Hire a Registered Agent?
Hiring a registered agent lets you worry about running your business rather than sitting around in one place waiting for paperwork that may or may not arrive. Registered agents are obligated to stay at one address most of the day during regular business hours, typically Monday through Friday from 9 a.m. to 5 p.m.
If you’re running a business, staying in one place may not work for you. You may need to visit multiple sites throughout the day to ensure everything runs smoothly. And even if you can stay at one location all day, do you want a process server walking in and handing you a lawsuit in front of fellow employees and even customers? Most people would rather not make their legal matters the rest of the world’s business.
A registered agent should provide discreet, secure service. They should let you list their business address on state paperwork so you can keep your personal address private. They should also forward you any relevant documents the same day they accept them, ideally within minutes, not hours.
Are registered agents required by law?
Yes, in nearly every state you are required to appoint a registered agent for your business. In general, you won’t even be able to file state formation paperwork without first listing the name and address of your appointed registered agent.
FAQs
How does service of process work?
Service of process usually goes something like this: a process server enters the registered agent office and hands legal paperwork to the registered agent. Once the agent signs, the lawsuit is considered served. The registered agent then forwards the paperwork to the business owner so they can respond to the lawsuit in a timely fashion.
Do I need a registered agent in every state?
You need a registered agent in every state where you do business. So if your registered agent is in New Mexico but you want to expand to Texas, you’ll need to hire a registered agent who is physically located in Texas.
Can I be my own registered agent?
Technically speaking, you can list yourself as your company’s registered agent if you meet all the qualifications. But for most people, it’s not worth the hassle and loss of privacy.
When should I hire a registered agent?
You should hire a registered agent before you form your business so you can make sure to list the registered agent’s information on formation paperwork you file with your local Secretary of State (or equivalent office). You’ll need to know who your registered agent is to properly complete and submit the required paperwork.
