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If you run your own small business, you may have heard the term “registered agent.” And, amid all the other tasks you need to complete to operate your company, you might wonder if it’s required to have one — or what one is, for that matter. In this guide, we discuss what a registered agent does, which types of business entities require a registered agent, the legal requirements and where to hire one. 

What is a registered agent?

A registered agent is either an individual or entity that receives official business correspondence on behalf of a company and relays these documents to a responsible party within that business in a timely manner. This correspondence is usually from a legal, government or financial entity, such as the IRS, secretary of state, a law firm or a county clerk’s office. 

Do you need a registered agent for LLCs, S and C corps and other business entities?

The Small Business Administration (SBA) offers a list of organizations that need a registered agent, including: 

  • A limited liability company (LLC). 
  • A limited partnership (LP). 
  • A limited liability partnership (LLP). 
  • A corporation (either an S corporation or a C corporation).
  • A nonprofit organization. 

Organizations must have a registered agent in all states where they do business. For example, if a company starts a restaurant in Virginia, then opens another one in Maryland, it must appoint a registered agent in each state. 

What are the legal requirements for a registered agent?

A registered agent must meet the following requirements:

  • Be located in the state where the business it represents operates. 
  • Have a physical address (not a P.O. Box) in the state. 
  • Be physically present during all standard local business hours at the address listed as the registered agent address. 
  • Be available to receive official correspondence and then notify a responsible party within the company who can address it in a timely manner. 
  • Be at least 18 years old. 

They also need to adhere to state-specific laws, which vary. For instance, here are some unique state-specific requirements: 

  • Virginia: The registered agent can only be a member of the company’s management team, a lawyer or a registered agent service provider, not a third party like a friend of the owner. 
  • Colorado: The entity itself can serve as the appointed registered agent. 
  • Washington: Anyone can serve as a business’s registered agent, provided they consent to assume the duty. 
  • Texas: While you can appoint anyone within the organization or a third party to serve as a business’s registered agent in Texas, a government authority cannot assume the duty. 
  • Michigan: Unlike most states, a foreign business authorized to do business within Michigan can serve as the registered agent of a Michigan-based company. 

What does a registered agent do?

A registered agent receives official business correspondence on a business’s behalf and passes it along to a responsible party within the business in a timely manner. After receiving mail, most registered agent services send an email notification and scan the document into an online portal for your viewership. 

Besides the basics, a registered agent service can also provide additional services and products. “Additional services to look for are the ability to forward and store documents and online compliance tools,” explains Katie Charleston, founder and partner of the Carmel, Indiana-based Katie Charleston Law. 

For example, as a courtesy, SunDoc Filings alerts you when it receives documents on your business’s behalf by phone or email (your preference), then forwards the hard copy to you via FedEx’s second-day service. Another registered agent service, incorporate.com, offers access to a proprietary document organization system, which keeps a paper trail of your business entity and a calendar with compliance features like filing due date notifications.

Other features and add-on services many registered agent services offer include:

  • Access to legal counsel.
  • Identity theft protection. 
  • Filing deadline alerts. 
  • Tax consultation services.
  • Same-day document delivery. 
  • Annual legal document reviews. 

Can you be your own registered agent? 

While most states do not allow your business to act as its own registered agent, all 50 states allow an individual within the company, such as an owner or manager, to serve as the business’s registered agent. 

For example, in Alaska and Florida, while an individual within a business can act as the entity’s registered agent, the business itself cannot. In contrast, Delaware and Colorado allow a business to serve as its own registered agent. However, it still must meet most of the requirements of any other appointed registered agent, such as having a physical address in Delaware or Colorado and being open to receive correspondence during all local business hours throughout the year. 

Where to hire a registered agent

Some businesses hire a lawyer or tax professional to act as their registered agent. However, there are risks involved with this. For example, a registered agent must be present at the address listed during all regular business hours throughout the year. If they are not present and, in turn, the business does not receive paperwork indicating a lawsuit against the company, the company may forfeit its right to a defense. 

For this reason, if you hire a registered agent, we recommend hiring one solely dedicated to and specializing in that service. A lawyer may, for example, leave the office to take a sick day or meet with a client, while a registered agent service provider always has someone available in the office to receive your documents during all regular local business hours. 

Read our best registered agent services guide to find the right provider for your business. 

When should you hire a registered agent service? 

Here are a few situations in which hiring a registered agent may be in your best interest:

  • Your small business operates out of multiple states. 
  • You formed your business in a state that’s different from the one where you operate. 
  • You operate out of your home and don’t want your address published in a public database. 
  • You don’t have a permanent business address. For example, you may run a food truck or mobile professional services. 
  • The internal person who would act as your registered agent is unavailable during some normal business hours throughout the year. 
  • You operate a seasonal business or do not operate within normal business hours. 
  • You are often absent at your place of business. You are a real estate agent, electrician or plumber, for example.
  • You use a post office box as your business address. 
  • You need additional compliance services, such as alerts for filing deadlines or access to legal counsel regarding received correspondence.
  • You work in a high-risk industry where you must be immediately aware if you are sued (such as in the medical field). 

Frequently asked questions (FAQs)

Yes, all 50 U.S. states require you to designate and maintain a registered agent to receive financial and legal notices and correspondence. This duty is usually only fulfillable by a person or a third-party service. However, a few states, such as Colorado and Delaware, allow your business to serve as its own registered agent. 

The cost for hiring a registered agent varies based on the provider and scope of services. Generally, hiring a registered agent service costs between $90 to $300 a year. However, you might be able to get a discount if you need services for several states or multiple entities. In addition, some providers bundle free registered agent services for a year with other business services, such as LLC formation.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Jackie Lam

BLUEPRINT

Jackie Lam has covered personal finance for nearly a decade. Her work has appeared in TIME, CNET, BuzzFeed, Salon.com, Forbes Advisor, and others. As an AFC® financial coach and educator, she is committed to helping self-employed creatives and artists with their money.

Alana Rudder

BLUEPRINT

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.