What is an LLC registered agent?

If you are having an LLC, you will need a registered agent. An LLC registered agent is an individual or a company to be the LLC’s official point of contact to receive service of process, legal documents, and all the official communications from the state and then forward these things to the LLC it is working as an agent for.

Requirements for a registered agent

The requirements to be a registered LLC agent are pretty simple. The agent must be a resident of the state in which you have registered your company. A registered agent must have a physical address for the documents to be delivered. This address cannot be a P.O. box address.

Service of process

Service of process is considered the main function of a registered agent. This service may be delivered by a process server or a sheriff, sometimes it is done by a certified mail (return receipt required).

A registered agent must be available for the contact of the Secretary of state (filing office). They may send annual or biennial reports and some important communications to the address of the registered agent. As companies must keep the name and address of the registered agent up to date, these documents should be going to a person at a proper physical location.

Who can be your registered LLC agent?

1. You can be your registered LLC agent.
2. A friend, family member, or an employee can be your registered LLC agent.
3. You can hire a professional registered agent for your service.

How to know which agent to choose?

You might think that registering yourself as your agent might be a good idea. But there are a few things that you should keep in mind before registering anyone as your agent.

• An agent must always be available to receive service of process notices and other documents. It means they must be present at your registered physical location during business hours. If the agent is not available, the delivery cannot be made which can result in severe consequences.
• If you consider an employee from your company, the physical address will be the address of your company. In case your company is sued, it will be quite embarrassing to receive a lawsuit in front of your clients. If you are shifting your business elsewhere, you might also need to file a change of address for your agent.
• But if you have a professional registered agent for your service, you can shift your business anywhere you want. It won’t be affecting the address of your registered LLC agent.

The consequences of not having a registered agent

You need to designate a registered agent when you start an LLC. If your agent changes, you will need to file a form that indicates this change. If you do not have a registered agent, you will face serious consequences.

Your company might not be considered in good standing with the state you have registered. When it comes to the penalties and fines, your company could also lose its ability to enter into contracts or bring a lawsuit.

You also have a risk of not receiving the service of process and other important documentation in time. If you do not receive a service of process regarding a lawsuit, you will not know that your company is being sued. And when you do not know, you cannot respond in time and cannot appear at the court hearings, thus, any default judgment could be issued against you. In the case of compliance-related government correspondence, if you do not respond, it might result in penalties and fines.

Even though a registered agent provides simple functions, it has great importance for your LLC. That is why professional registered agent companies exist.