What is the Purpose of a Registered Agent?

If you're looking into incorporating your business in the United States, or if you've studied corporate law, then you may have wondered what is the purpose of a registered agent.

Isn't that just a fancy title for someone who receives a company's mail?

Well, yes, technically. But it's more important than it sounds.

What is the purpose of a registered agent?

A registered agent's purpose and function is quite simple: to be the authorized person to receive official documents on behalf of a company.

This could be anything from tax documents and legal paperwork to government correspondence and court summons.

This person is available at a business address during regular business hours to receive important communications on behalf of the company they represent. They are also responsible for forwarding these documents to the business owner or point person and notifying them of anything time sensitive. 

And yes, designating a registered agent (also called a resident agent, a statutory agent, or an agent for service of process) is a legal requirement for incorporated companies in the United States.

What types of companies are required to have a registered agent?

If you have to register your business with the State, then chances are you are required to have a registered agent. This includes but is not limited to:

● Limited liability companies (LLC)

● Limited liability partnerships

● Limited partnerships

● Corporations

Since general partnerships and sole proprietorships do not register with the State, these types of businesses are not required to have a registered agent on file.

Who can be a registered agent?

A registered agent can either be an individual or a corporation, as long as they meet the following criteria:

● Have a physical business address (not a post office box) within the State of registration

● Available during regular business hours at their business address

● Be at least 18 years of age

This could be an employee, a friend, a lawyer, a registered agent service, or even yourself.

Depending on the state you're registering in, there may be additional qualifications or requirements, so make sure to check your local regulations before designating your registered agent.

You determine your registered agent when you register your company. If you want to change this name, then you'll need to file a form with the State or important correspondence could get lost or mishandled, putting your business at risk.

Does it matter who you choose to be your registered agent?

You may still be thinking, does it really matter? Isn't this just someone who collects mail?

At its most basic definition, a registered agent is someone who makes themselves available to receive mail on behalf of your business. However, the purpose of a registered agent is to ensure you receive important information in an efficient manner.

Imagine if you were sent a massive tax bill that you weren't expecting, and your registered agent put it in a pile on their desk and then sent it to you in an assorted stack of flyers and other mail a month later. And since it was in the jumble, and they didn't point it out, you didn't open it for another few weeks. By the time you opened the notice, you now only have a few days left to pay the huge bill before incurring late fees or fines.

Do you see why having a trustworthy, reliable, and prompt registered agent could make or break your business?

And what if the notification was a subpoena to appear in court on a certain day? Missing that summons because you didn't read the letter won't get you off the hook! 

You need a dependable person who ensures you are alerted to important correspondence to prevent these types of oversights from happening.

Choosing the right registered agent for your business can make all the difference. 

How much does it cost to hire a registered agent?

Companies offering registered agent services generally charge an annual fee to receive and forward important correspondence. The cost varies depending on the type of service and company, but expect to pay somewhere between $100 and $400 per year.

If you operate out of multiple states, then you will need a designated registered agent in each state upon registration. This is where working with a company rather than individuals really pays off, since these companies often operate in all 50 States, making this process exponentially simpler.

Davinci has partnered with Legalinc (owned by LegalZoom) to provide you with dependable registered agent and incorporation services nationwide for as little as $169 annually.

We work with a variety of business entities including:

● Advertising and media

● Finance

● Healthcare

● Legal

● Real estate

● Service industries

● Technology consultants

Working with a dependable and professional registered agent service will provide you with peace of mind as you focus on the day-to-day business operations, knowing that you'll be alerted should anything pressing come up, no matter where you are in the world.

About Robyn Roste

Robyn Roste is a professional writer living and working in Abbotsford BC Canada. Her personal blog about freelance writing(http://robynroste.com) is listed in The 100 Best Websites for Writers in 2020 by The Write Life.