What Is a Registered Agent & Do I Need One for an LLC?

Do you need a registered agent for an LLC? Yes! If you're planning to form an LLC, you are required to appoint a registered agent. 

A registered agent plays a vital role in your business, making selecting the right agent important. If you're in the planning stages of your business or ready to form, it's imperative to understand what a registered agent is, the requirements around this position, and the benefits it has for your business.

Read on to learn everything you need to know about appointing a registered agent for your LLC. 

What is a Registered Agent?

A registered agent is an individual or company who is your official point of contact with the state to receive tax correspondence, service of process, and legal and state documents and transmit these communications to your business.

Qualifications vary from state to state, but generally, a registered agent must be 18 years old or older, have a street address in your state, and be present at that address during business hours.

Your business cannot be its own registered agent, but you can appoint yourself, a loved one, or hire a service. 

Do I need a registered agent for an LLC?

Yes, all states require LLCs to identify a registered agent and registered office address before filing articles of organization with the state filing authority. Additionally, LLCs must have a registered agent in each state in which it is conducting business.

A registered agent's job is to notify you in a timely manner of a diversity of communications, from tax notices to lawsuits. Subpoenas, lawsuits, and other notifications might have strict deadlines and harsh penalties for missing them. A registered agent ensures you avoid missed deadlines and other issues.  

4 Benefits of Having a Registered Agent for Your Business

Privacy 

One of the most significant benefits of working with a registered agent is the extra layer of privacy they provide. This eliminates the possibility of accepting potentially embarrassing legal and tax documents in front of your clients and employees.  

Multistate

If you do business in multiple states, you can use a registered agent service to handle those duties and remain compliant. Rules and regulations might also differ from state to state, so professional registered agent services are helpful to multistate businesses.  

Flexibility

When you designate a person or service for your registered agent needs, that address will remain the same. This allows you to easily change your business location without filing more paperwork to change your business address with the state for each move.

Always Compliant 

When you appoint a qualified registered agent, you won’t be in danger of falling out of good standing with your state. Losing good standing can have a serious impact on your business entity. It can prevent you from bringing a lawsuit in the state, expanding into other states, or obtaining the financing needed to grow your business. A registered agent will ensure that all time-sensitive documents are handled and organized to keep your business compliant with regulatory requirements.

How to choose a registered agent

There are several things to consider when choosing the best registered agent for your LLC.  

Factors to consider

Many first-time business owners must grapple with appointing a person or a registered agent service to handle their needs. While registered agent services do not typically represent a large portion of an LLC's budget, some owners need more time to make that financial commitment and might select themselves or someone they know. 

Qualities of a good registered agent

Beyond basic age qualifications and a street address in your state where they're present during business hours, a registered agent should be knowledgeable and punctual in all transmissions to your business. Appointing yourself or someone you know as your registered agent might seem workable, but challenges can mount fast. When that happens, there's comfort in knowing a professional is addressing issues on your behalf promptly.   

Options one can choose from

Your options for selecting a registered agent include an individual or a registered agent service. Whichever you choose, the person or business must be diligent and qualified, ensuring the timely delivery of important messages to your business.  

Registered Agent FAQs

How much does a registered agent service cost?

The cost of registered agent services varies, with the most expensive services costing in the ballpark of $500 annually. 

1-800Accountant offers registered agent services for $149 annually, which can be purchased using our free business formation service. For more information, see which entity is right for you. 

Can I be my own registered agent for my LLC?

As an LLC owner, you can serve as your own registered agent if you fulfill your state's specific registered agent requirements. Business owners are generally not advised to act as their registered agents due to potential risks and the responsibilities involved.

When is outsourcing a registered agent a good idea?

Outsourcing a registered agent becomes a good idea when businesses require expert assistance handling sensitive communications and maintaining compliance. By allocating budget to an experienced registered agent, companies can efficiently manage their legal obligations and prioritize other business needs.

Partner With Our Trusted Registered Agent Services

Starting a small business is an exciting undertaking that requires your full attention. But momentum can shift when you're faced with making critical decisions, including choosing the perfect registered agent to handle your materials or selecting the correct business entity to form as. That's why so many small business owners use 1-800Accountant, America's leading virtual accounting firm for small businesses, for their needs. 

Whether it's our registered agent service, complimentary business formation, small business taxes, or professional accounting services, we have the solution you need at a price that works within your budget. Schedule a quick consultation – usually 30 minutes or less – to learn how we can help.