When going through the legal process of setting up your business as an LLC, it’s essential to have a registered agent to receive legal notices in person at the listed address during business hours.
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There are so many different decisions that need to be made when you’re completing your formation documents and starting your limited liability company (LLC). If you’re in the beginning stages of business planning, you may be wondering… Do I need a registered agent for my LLC?
Let’s dive into that question and discuss if you even need to name a registered agent. (Hint: every LLC business does!)
A registered agent’s information is available publicly, as they’ll be the one to receive any official notices or legal documents, as well as be present at the publicly listed registered agent address (known as a registered office) during regular business hours. The registered office doesn’t need to be the same as the business’s office, but it must be a physical address (not a P.O. box or something similar) within the state where the LLC was formed.
Read our guide to learn more about the differences between a registered agent and virtual address for your business.
An LLC’s registered agent is listed as part of the public record and will be in charge of receiving legal notices and official state correspondence on behalf of the LCC. It’s legally required to have a registered agent, as you’ll need to include their information while going through the LLC filing process.
Having a registered agent means that the state and anyone needing to contact the business owners (for example, a process server delivering notice of a lawsuit against the business) can get ahold of the correct person at your LLC if necessary. The agent must be able to accept legal notices in person during normal working hours (usually 9 a.m. to 5 p.m.).
Here’s the bottom line: LLCs must have a registered office address on file, and the registered agent listed in public documents must be at that street address during working hours.
Your registered agent should be reliable and at the listed physical location during typical business hours. While some people do name themselves as the registered agent, others will list a registered agent service during the business formation process. It’s also popular to use a business lawyer or name your business partner, as long as they can receive legal notices in person during regular business hours.
It’s essential to make sure you can easily contact your registered agent and that they can be trusted to be available to receive legal and state notices and quickly relay them to you. They’ll be listed in your business formation paperwork, so consider choosing someone dependable and having their contact on file.
Here’s a breakdown of your options:
Some entrepreneurs choose to serve as their own registered agents, but we rarely advise that our readers use this option. While there’s nothing legally preventing you from being your own agent, it can inconvenience you in a variety of ways.
If you do serve as your company’s registered agent, you’ll need to be available at your business address between the hours of 9 a.m. and 5 p.m. on all weekdays, which means no vacations, sick days, doctor’s appointments, or lunches out.
Additionally, if you’re served for a lawsuit, there’s a good chance your customers or employees will witness the service of process delivery, which is far from an ideal situation.
Finally, because a company needs a registered agent in each state it does business in, you won’t be able to expand your business into additional states if you’re serving as your own agent.
Another option is to have someone you already know be your registered agent.
Some entrepreneurs will designate their spouse for this role, or perhaps a trusted friend ― unfortunately, these options run into many of the same issues as you would by serving as your own agent. Likewise, having one of your own employees handle this role doesn’t solve the issue of being served for a lawsuit in front of your customers and/or employees.
You could also have your lawyer or accountant handle this role, which gives you the advantage of having a trusted business associate as your registered agent. On the negative side, attorneys and CPAs often charge high rates to serve as registered agents, and they may not have much experience in this position, either.
Our recommendation is to hire a registered agent service to fill this important position. A registered agent service is a company that specializes in being a registered agent for a wide variety of businesses across the country, bringing tons of expertise and a healthy dose of reliability to the role.
Most professional registered agent services operate on a national basis, meaning there’s no restrictions on which states you can operate your business in.
They also tend to charge affordable rates, as you can find several registered agent services that charge around $20/month or even less for this service. In addition, the personal address of home-based entrepreneurs will remain private when you hire a professional registered agent service.
There are quite a few of these companies out there, and most of them make it quite easy to enlist their services. On the other hand, it can be a bit tricky to figure out what exactly sets these companies apart from each other because they provide very similar services. If you want some help narrowing down your options in this regard, we suggest that you read through our complete guide to the top registered agent services.
Registered agent services usually include some additional features, which vary depending on which company you choose. In general, though, you’ll often see these services offer a compliance calendar to help you track your important filing deadlines, and you’ll always receive access to their helpful customer support teams.
Choosing a registered agent service ensures that you’ll meet your state’s registered agent requirements by always having someone available at the registered office location to accept legal and other official notices in person and have them immediately forwarded to you and the other LLC owners.
A registered agent service can be listed in legal paperwork and makes the most sense if there isn’t always going to be the same person at the official physical location.
While some states have specific requirements about who can and cannot be a registered agent, the typical standard is that the individual must:
As long as someone fulfills the requirements above, you can list them while filling out your Articles of Organization or other LLC formation documents.
Being your own registered agent can cause problems, such as putting you in the awkward position of being notified of a lawsuit in front of customers and employees. Hiring a professional registered agent service like ours can provide the following benefits:
Recommended: Do I Need an Attorney to Start an LLC?
If you’re looking for assistance with business setup, we’re here to help. At ZenBusiness, we can provide you with registered agent services, so you can be sure that all legal requirements for your registered agent are fulfilled.
Starting a business can feel isolating, but you’re not alone. Check out our formation services and see if they could be the right fit for your business. We can handle the paperwork of forming a limited liability company for you. When you choose our services, you’re getting the assurance that you’re on the right track and making decisions that will set you up for success in the future.
Can I be penalized for not having a registered agent for my business?
If business entities don’t have a registered agent, their entity status is in jeopardy. Large business issues can arise as a result of not naming a registered agent, such as the government completely shutting down your business. It’s essential to have a registered agent listed in the public record, and there could be significant financial consequences if you don’t. Registered agents are an ongoing requirement that you’ll need in order to maintain your business status.
Do I need a registered agent in Delaware?
Yes, having a registered agent is required in Delaware. You’ll need to have a registered office address and ensure that the registered agent you list is at that physical address during normal business hours. Business compliance in Delaware will require you to name a registered agent, so you should already have a name in mind before filling out your business records.
When should I hire a registered agent service?
You should hire a registered agent service before you file your Articles of Organization or other LLC formation documents. By doing it in this order, you’ll be able to write down their information when you’re filling out the necessary paperwork.
Can I use a personal address when filling out formation documents?
Most states will require you to provide the personal addresses of the LLC owners as well as the principal business address. You’ll also be required to list the registered office address.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Written by Team ZenBusiness
ZenBusiness has helped people start, run, and grow over 700,000 dream companies. The editorial team at ZenBusiness has over 20 years of collective small business publishing experience and is composed of business formation experts who are dedicated to empowering and educating entrepreneurs about owning a company.
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