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A Registered Agent’s Role

A registered agent is an individual or entity designated to accept service of process if a lawsuit is filed against a company.  In plain English, they accept the papers if a business is sued and receive any legal notices or government communications on behalf of the business.

Are There Any Special Requirements?

A registered agent must be a resident of the state in which the business is located, a corporation in that state, or a corporation that is qualified to do business in that state.  The registered agent also needs a registered office within the state, which must be at a physical location and not merely a post office box. 

Why Do I Need This?

When formation documents are filed with the state to establish a corporation or LLC, a registered agent must be appointed.  The state wants to ensure that those doing business with a company inside its borders can, if necessary, take legal action against the business.  The state also needs a means for contacting each company operating inside its borders.      

Is It Important?

If a business is sued, it is permitted only a certain number of days within which to file an answer to the lawsuit.  A failure to timely file an answer allows the plaintiff to ask the court for a default judgment.   A default judgment gives the plaintiff an automatic victory on liability and sometimes gives them everything that they asked for in their suit with no questions asked.  Failure to maintain a registered agent may also cause a business to incur heavy fines and even lose its right to do business. 

Anything Else To Think About?

If a business is formed and located in one state, but also doing business in others, that company may need to qualify to do business in those foreign states and designate registered agents in each of them.   

What Do People Do About a Registered Agent?

Some business owners designate an attorney to act as their registered agent, while others choose to appoint registered agency specialist companies to act as registered agent.  Very often, nation-wide registered agents have the more resources and efficient processes for handling the duties of a registered agent. 

Can I be the Registered Agent?    

A person can act as the registered agent for their own company so long as they permanently reside in the state in which a registered agent is needed and so long as they maintain and are available at the registered office during business hours.  Of course, this individual’s personal information will become a matter of public record.   They could also be personally served with a lawsuit while at home or at the office with clients or customers.

Final Note

Deciding on a registered agent is important.  It is an basic legal requirement and the wrong decision could spell disaster.  If a business owner has any lingering doubts about who to select and appoint as registered agent, themself or an established company that offers these services, the best bet is to go with a reliable national registered agent.