What is a Registered Agent?

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What is a Registered Agent?
2009.04.09

A registered agent is a business or individual designated to receive service of process (SOP). The registered agent for a business entity may be an individual member of the company if they reside in the same state the entity is physically located, or (more often) a third party, such as the organization's counsel or a service company. The registered agent's name and address is required in order to incorporate your business. Failure to properly maintain a registered agent can negatively affect a company. Registered agent service is offered at a one time flat rate fee. Fees may vary by state.

The function of a registered agent: the purpose of a registered agent is to provide a legal address other than a P.O. Box where there are persons available during normal business hours to facilitate legal service of process being served in the event of legal action or a lawsuit. The registered agent is also the person or entity to whom the state government sends all official documents required each year for tax and legal purposes, such as franchise tax notices and annual report forms. The registered agent duty is to forward these documents to the entity itself. Penalties for not maintaining a registered agent generally will cause a jurisdiction to revoke a business's corporate or LLC legal status, and in some cases assess additional penalties and fees on the entity.  

Advantages of a third-party registered agent:

• The registered agent legal address will be the one listed in all official public documents.
• An outside registered agent allows business entities to freely change their location at any time without having to file costly changes of address with the state in which they are registered in.
• Commercial registered agents generally have systems that keep track of filing, notification and publishing requirements of business entities which can save businesses money in the event they were to miss a required government filing.