Why You Need an LLC Registered Agent

An LLC registered agent is more important than just completing a required box on a form in order to file your organizational documents — it’s a key point of contact for your company who’ll protect your privacy, prevent identity theft, and shield you from additional legal and financial consequences.

This article will explore what a registered agent is as well as the importance of their role in safeguarding your business’s legal and operational integrity in order to provide you with an answer to the question why do you need an LLC registered agent.

What is a Registered Agent

A registered agent — also called a statutory agent or resident agent — is the person or business entity assigned to accept “service of process” on behalf of your company.

Service of process just means that your appointed registered agent is responsible for receiving tax forms, legal documents, official notices, and any other correspondence from the government (e.g., annual report reminders) meant for your business.

Who Can Be a Registered Agent

The registered agent you designate in your Articles of Organization can be yourself, a friend or relative, another member of your business, or a professional registered agent service — as long as they meet the following criteria:

• Be at least 18 years of age (for individuals)
• Be registered to operate the company within the state (for business entities)
• Have a physical address in the state where your business is located (business address cannot be a P.O. box or mail center)
• Be available at the registered agent address during normal business hours

Note: Be aware that while a business can’t represent itself, any individual business owner may act as its own registered agent as long as he or she meets the above requirements.

When to Use a Registered Agent Service

While each business will be faced with their own unique situation, there are several general reasons where using a professional registered agent service is highly recommended, including:

• Additional Privacy Protection: These services are a great option for business owners seeking extra privacy measures because the registered agent’s address is made public instead of your personal address (or that of your friend/family member)
• Peace of Mind: Professional registered agent services are well-versed in handling important documents, which reduces the risk of you missing important deadlines or information. This gives you the peace of mind that your business will remain compliant and frees you up to focus on growth and operations
• Operating in Multiple States: If your business operates in more than one state, it can become a logistical nightmare to manage multiple registered agents. A registered agent service can avoid this by acting as your agent in all the states you’re based in, streamlining your operations and ensuring compliance in each location
• Flexible Business Hours: Many business owners, especially those running home-based businesses or setting their own hours, may not be available during standard business hours to accept important documents. A professional service is always available to receive communications, ensuring you never miss crucial notifications

Depending on the service provider you go with, the cost of a registered agent service can vary wildly. With that said, most third-party services fall within the range of several hundred dollars a year.

Overall, we highly recommend using a registered agent service as it solves several issues — and provides multiple benefits — at a very low cost.

How to Change Registered Agent

If you ever decide to change your registered agent (e.g., if you want to switch from an individual agent to a commercial one), you must complete two main steps:

1. Obtain permission from your new registered agent.
2. Update your records with the state.

The first step is obvious, but some small business owners forget the formality of notifying their Secretary of State. Keep in mind that as a registered business, it’s your responsibility to ensure you update your records with the state. You can do this either by amending your Articles of Organization or by filing a registered agent change form —whichever is appropriate in your state.

What Happens If I Don’t Have an LLC Registered Agent?

Each limited liability company (LLC) must appoint a registered agent to serve on behalf of their business — this is an essential part of the business formation process that must be completed as you fill out your Articles of Organization (or equivalent in your state).

As such, if you don’t have an LLC registered agent, you won’t be able to form your LLC. It’s not just a recommendation because it helps your business run more smoothly, it’s a state requirement.

In fact, filing a formation document without a registered agent could result in the administrative dissolution of your business in the state of its formation and the forfeiture of your LLC’s authority to do business in other states.