What does a registered agent do?
A registered agent serves as your official point of contact for legal and tax communications. In other words, if someone sues you, your registered agent is the one who will get served with the legal papers. Each state has its own requirements for who can be a registered LLC agent. Generally, registered agents are required to be available during normal business hours to receive legal papers. In some cases, the agent may have to be lawyer or a CPA if they are not an actual member of your business. But in some states, like Delaware, the agent just has to be a legal resident of Delaware and able to run a business in the state during regular business hours.
Why do I need a registered agent?
All states require physical addresses for businesses for official communications. Most require the registered agent be available during all regular business hours to receive service of process in case the business is sued. This ensures that a business can be reached in person since legal service of process cannot be completed through a post office box. Service of process is simply the giving and receiving of a summons in a lawsuit. It is not enough for a person who wants to sue another to file the lawsuit in court. The person suing must also hand over legally-mandated information about the lawsuit to the person they are suing.
For many small business owners, freelancers, or independent contractors, being present at their business address during business hours may not be possible. Hiring a professional registered agent, however, allows businesses to be sure they will comply with their state’s registered agent requirements.
Businesses that are registered in more than one state may be required to hire a registered agent in each state they are registered in order to comply with each state’s laws.
How do I choose a registered agent?
When you are considering your LLC registered agent, look in particular to the agent's organization and notification methods. Always make sure that the service you choose has a good reputation for timely delivery.
When your agent receives a lawsuit or official notice, the court considers you properly served. This means that you could be found liable through default judgment, even if you've never heard about the case. Default judgments typically cannot be appealed because of an ineffective or incompetent registered agent, so make your choice carefully.
Rocket Lawyer registered agent services send email notifications and provide secure online access to all notices received. Rocket Legal+ members get HALF OFF registered agent services. If you have more questions about registered agents or need answers to other questions about your business, reaching out to a Rocket Legal Pro™ is an easy and reliable way to get affordable legal advice.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
