Registered Agent

A registered agent, also known as a resident agent or statutory agent is a business or individual appointed to receive service of process (SOP) when a business entity is involved in legal actions such as lawsuits or summons. The failure to maintain a registered agent can have negative effects on the company, such as penalty fees and revocation of the entity´s corporate or limited liability company legal status.

The purpose of a registered agent is to provide a legal address within a jurisdiction where there are persons available during normal business hours to facilitate legal service of process being served in the event of a legal action or lawsuit. The registered agent is also the person 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 resident agent sends these suit documents and notices directly to the business entity. Registered agents also notify business entities if their state government filing status is in "Good Standing" or not. The reason that these notifications are a desired function of a registered agent is that it is difficult for a business entity to keep track of legislative changes and report due dates for multiple jurisdictions given the changing laws of different states.

Any person or business entity may act as a registered agent. Small corporations usually name themselves as the registered agent. Some states require that individuals that act as resident agents be members of the Board of Directors or be attorneys.

The services of a registered agent may be provided by attorneys or CPAs. However, the services are usually provided by commercial registered agent service companies.

Requirements for Registered Agents

• If an individual, the agent must be a legal resident in the state in question.
• If an entity, authorization to carry out business in that particular state.

Some jurisdictions require that the business entity appoint a third party as its registered agent.

Advantages of Appointing Third Parties as Resident Agents of Business Entities

• The freedom of business entities to change their physical address without having to pay costly fees.
• The designation of an additional address for receiving service of process for added privacy
• The business owner is free to travel without the risk of a default judgement due to a missed lawsuit.
• Savings in late penalties due to missed government filings with the use of systems that keep track of notifications, filings and publishing requirements of business entities.
• The resident agent´s legal address is listed on all official public documents.