When to Use a Registered Agent Service

When you form your business as a C corporation, S corporation, limited liability company (LLC), limited liability partnership (LLP), limited partnership (LP), or nonprofit corporation, you need to select a registered agent. Virtually all states require businesses that are incorporated or foreign qualified (registered to transact business) to have a registered agent in that state; however, many business owners have no idea what a registered agent is or does.

When to use a professional registered agent

As you evaluate  who should be your company’s registered agent, be aware of circumstances that make using a professional registered agent service provider a smart choice:

• Incorporating in a state where you don’t have a physical location. You are legally required to have a registered agent with a physical address (no P.O. Box) in the state of incorporation. Using a professional registered agent helps satisfy this requirement. 
• Using a Post Office Box as your business address. You cannot act as the registered agent for your business if you have only a P.O. Box or a private mailbox.  
• Doing business in several states. When you register your company to do business in states other than your state of incorporation (foreign qualify), you need a registered agent in each of those states. By using a professional registered agent service provider, one company is coordinating this responsibility and providing consolidated recordkeeping and compliance notifications, so you can concentrate on your business.  
• Changing addresses frequently. You must keep your registered agent address updated with the state, and changing it requires a formal state filing and possibly a state fee. If you name yourself as your company’s registered agent, you are responsible for keeping your address current. By using a registered agent service provider, you never have to worry about this. 
• Your business is home-based. The registered agent address is a matter of public record. That means anyone, including marketers, can access it. It is not uncommon for the registered agent to receive a lot of junk mail. By using a provider, you won’t receive these unsolicited mailings.   
• Privacy is important. When a company receives a Service of Process (the document that provides notice a lawsuit is being filed against your company), it is often delivered by local law enforcement. Having law enforcement show up at your home or business is not ideal. Using a registered agent ensures you receive any Service of Process discreetly.
• You prefer to be alerted when a document requires immediate attention. It is very important that Service of Process be handled properly and promptly to avoid a default judgment, which will signal that the other party wins, and your company may need to pay damages. A professional registered agent service provider will alert you if one is received.
• You don’t keep normal business hours. The registered agent must be available during normal business hours to accept important documents as they are delivered. If you set your own hours or are often away from your business location (such as making service calls), consider using a professional registered agent service provider, so you never miss important communications. 
• You do not have a permanent worksite. If your business requires you to move around, using a registered agent service ensures that important documents reach you and your business. 

How to select a professional registered agent

You’ll pay an annual fee to use a registered agent service provider, so look for one who is professional but offers additional value for your money. Some criteria to consider:

• Authorized in every state. Using a company authorized to act as a registered agent in every state is helpful as your company grows, particularly if you do business in more than one state or need to relocate.
• Compliance assistance. Some registered agent service providers offer their customers assistance complying with ongoing formalities that corporations and LLCs face. Examples include alerts and reminders for ongoing compliance requirements and filings, annual report filing services, company status monitoring in states where you are registered and forms needed for internal compliance obligations. 
• Change of agent assistance.  If you already have a registered agent for your business, changing your agent requires a state filing and payment of applicable state filing fees. Many registered agents will not only undertake the filing, but also cover the state’s filing fee.
• Convenient account access.  As a business owner, your time is precious. Look for a registered agent service provider that will give you easy online access to your account—including all your important business incorporation and filing records. 
• Look for a partner.  Think of your selected professional registered agent service provider as a true partner in your business—and not just the fulfillment of a legal obligation.