What Is A Registered Agent For LLC 2023? Hire An Agent Now
All LLCs are required to have a registered agent[1] from the minute they’re formed. If you have a business, you need a registered agent. While some eligible business owners can do it for themselves, some companies offer this service for LLCs in the US at very affordable prices. Whether you’re forming your LLC or corporation right now or it’s already in operation, working with a commercial registered agent service can provide a huge benefit for LLCs of all sizes.
What Is A Registered Agent?
A registered agent also called a resident agent or a statutory agent is a specific person or company who is authorized to accept official mail and legal documents on behalf of a business entity. In the US, every limited liability company is required to have a registered agent in each state where they operate. The bottom line is that your LLC or corporation will need a registered agent from the minute you open.
What Is A Registered Agent?
A registered agent also called a resident agent or a statutory agent is a specific person or company who is authorized to accept official mail and legal documents on behalf of a business entity. In the US, every limited liability company is required to have a registered agent in each state where they operate. The bottom line is that your LLC or corporation will need a registered agent from the minute you open.
The address of your LLC’s registered agent is part of the public record. This is the address where legal notices, tax documents, and other official papers and mail will be delivered to your business. If you are served with a service of process (lawsuit), it will be delivered to the registered agent.
Why You Should Choose A Registered Agent?
There are certain legal requirements for an LLC’s registered agent. The main registered agent requirements are that they must be at a physical address in the state they’re registered during normal business hours. This means the registered agent should be available to accept official documents Monday through Friday from 9-5 all year, which are the standard business hours in the US.
You can be your registered agent, or you can designate one of your employees to do it if they meet the registered agent requirements. However, your company cannot act as its registered agent. What this means is that any individual who’s labeled as the registered agent has to be available all the time, because no one else in the office can receive important documents except the registered agent.
Hiring a professional registered agent service allows you to operate freely without having to worry about individual registered agents. A registered agent service can be available at their physical address all the time, even if employees go on vacation or you move to a new location. It’s more convenient for you since you don’t have to worry about your office hours or filing to change your registered agent address.
Factors To Choose Suitable Registered Agents
How do you make the right choice when hiring your company’s registered agent? There are a few areas you need to look at to compare.
Registered Agent Features Are Offered For The Price
Instead of just checking for the lowest price, look at the value each company provides for the money. Many companies offer great package deals for new LLC formation as well as for existing LLCs.
What is the registered agent offering your business entity? Every company should receive documents and service of process for you. Some features to look for are online portals, document scanning, state compliance alerts, paperwork filing, physical mail forwarding, digital mail forwarding, and more. Make sure you’ll be properly notified if you receive service of process, government correspondence, or a legal notice at your listed registered agent address.
Location During Normal Business Hours
You need a registered agent who works in the state where your business operates, or will operate. If you’re planning to operate in multiple US states, choose an agent that’s registered in those states as well.
Customer Service Reviews As Registered Agents
One of the best indicators of how suitable a company will be is how well they’ve performed for its customers in the past. Check out how other customers have felt about their interactions with a registered agent service by looking at customer reviews.
LLC Formation With Registered Agent Service
Many of the best-registered agent companies include this service as part of an LLC formation package. This can be a big benefit for new LLCs, since the company can file the paperwork to be your registered agent from the start, rather than having to change your agent later.
Getting your company’s registered agent service settled immediately as you begin your LLC takes a load off your plate and helps you start your business right.
Top 5 Best Registered Agent Services
Although many companies provide registered agent services to LLCs, not all of them provide the same level of service. When this is the company that’s handling your service of processing and tax documents, it’s best to look at all your options!
Here’s a breakdown of the top 5 national registered agent service companies operating in all 50 US states.
ZenBusiness
ZenBusiness is a company that offers LLC formation services, registered agent services, and a variety of other helpful business process packages. If you’re just starting, you can work with them to form your LLC from start to finish. They offer a solid service for LLCs at a good price point, with almost unmatched customer service.
ZenBusiness walks you through the LLC formation process, including helping you check the availability of a business name, filing your formation documents with the state, and providing registered agent services for the first year. With the basic package, you have to draft your documents before filing and applying for your own EIN, but you can get assistance in drafting documents and applying for an EIN as well with an upgraded package.
While registered agent service is included with the ZenBusiness LLC formation package, it’s also a service they offer individually. As a registered agent, they scan all tax and legal documents on the same day they’re received for you and upload them to an online portal where you can view them at any time to print or download. If you want reminders about important upcoming annual report state filing deadlines or assistance in automatically filing annual paperwork, you can upgrade your package to include these services as well.
Northwest Registered Agent
With Northwest Registered Agent, you can get assistance in forming your LLC or simply hire a registered agent service with a lot of value for money. They have a great service package that gives you a lot of tools to keep your business running well with minimal effort on your side.
When you receive any documents, Northwest Registered Agent scans and uploads everything within minutes of its arrival, and you can access it through their portal immediately. Northwest places a huge emphasis on data security and privacy, so you can count on your private legal documents being held securely out of public view. You’ll also get reminders about important filing deadlines for compliance-related documents and annual report filings with the state(s) you’re registered in.
Northwest Registered Agent’s LLC formation service also adds a lot of value to new LLCs. You can use their pre-filled forms to greatly speed up the process, and they’ll walk you through the steps to get your LLC off the ground. Or, you can sign up for a full-service package and get your LLC registered for you with minimal action needed from your side.
Incfile
Incfile gets the jobs done for a competitive price, as long as you’re a simple LLC. They offer a comprehensive professional registered agent service in all 50 states, as well as LLC formation packages. As your registered agent, they scan and upload documents to the online portal the same day they’re received. You’ll also get notifications every time you receive something, which you can customize to tailor more to your needs.
One of the biggest advantages of Incfile for new businesses is that they do offer a free LLC business formation service that includes a year of registered agent service. This is a great deal for small businesses that just want to get off the ground on a bootstrap budget.
Although they have a good offer, Incfile has a very narrow range of services for business clients. While you can start your LLC or get a registered agent, there are not many legal services or other business services beyond that. If you’re a small business looking for a company you can grow with, this is probably not it, especially if you’re looking at limited liability partnerships.
Harbor Compliance
Harbor Compliance is a smaller company in this space, but it can take care of LLC formation and registered agents for LLCs around the US. With the basic registered agent service, you get immediate access to their physical address for use on your LLC filing documents.
All documents are uploaded to the online portal the same day they’re received. You’re sent a notification for each document, including service of process and government correspondence, allowing you to act on it quickly. If there’s a service or process issued to your company, you’ll be called directly to act immediately.
One area Harbor Compliance does well in is customer service. You can call or email and get excellent support on all your LLC questions and issues. If you’re in the space where you need foreign qualifications for your limited liability companies, Harbor Compliance is on the pricier side for that service, as well as for registering as an agent in multiple states.
LegalZoom
Compared to other registered agent services on this list, LegalZoom is by far the most expensive. However, they’re one of the strongest brands on the market and they offer a highly comprehensive package to go with that price tag.
With LegalZoom, you get registered agents who are quick and reliable. They receive documents and scan them to their online platform in minutes. You’ll get an email alert to tell you a document has been received. If you have an existing LLC, LegalZoom will also file the paperwork for you to amend the registered agent’s address, submitting the new registered agent address right away for your LLC or corporation.
LegalZoom has been in the market offering business services for decades. They provide an enormous range of services, including legal consultations from their vetted law firms and complex filing services for corporations and other business entities. This might be helpful if you receive service of process at any time. While it’s probably not ideal for bootstrapping startups, this is a company that can grow with your business, if you’re willing to pay for it.
5 Basic Steps To Start An LLC In 2023
When you’re starting an LLC, you have to get registered in the state where you’ll be operating. To form your LLC, you need to file paperwork with the state you’re registering in and follow this simple 5-step process.
Choose A Name For LLC
Name Generator
Put words on the search field
we will get you to your dream business name
Before you can start any paperwork for your LLC, you need a name for it. Come up with a list of name ideas, then run them through you’re a few databases to check if they’re available or not.
You can check the availability of a name by searching it on Google, checking a state-provided name search tool, and going through the US Patent and Trademark Office’s business name database.[2]
In many states, all LLCs are required to put “Limited Liability Corporation” in their business name, or some approved variation such as “LLC” or “Limited”. This requirement is for your legal business name, not necessarily the name you trademark or use for marketing.
Choose Your Registered Agent
For every state you operate in, your business needs to have a registered agent. When you first register your LLC, you have to state who your registered agent is and the physical address they can be reached at. This will become part of the public record. If you operate in multiple states, you will have to have a different agent with a physical location in each state. The agent’s address must be a street address in that state.
While you or one of your employees can serve as your statutory agent, it can be very beneficial to work with a registered agent service instead. If you work with a company to help you form your LLC, they will usually also offer registered agent services. As your business grows, a good company can transform with your LLC to become your corporation’s registered agent as well.
It’s best to establish your registered agent service from the beginning, so you don’t have to go through the process of filing to change your information after the LLC is already established. Your initial registered agent can be a professional registered agent.
File Articles Of Organization
Every LLC must file Articles of Organization with the state they’re registering in. This is a document that details the roles, liabilities, and duties of each member of an LLC towards each other and the LLC itself. Articles of Organization are also known as a Certificate of Organization or a Certificate of Formation.
The information in the Articles of Organization includes:
- Company name
- Business address
- Registered agent information
- Founding members’ names
- Business purpose
- Manager and director names (if applicable)
- Start date
- LLC duration (date of dissolution or perpetual)
As you file this document with the business entity filing office in your state, you’ll also pay for the state filing fee.
Create An LLC Operating Agreement
Some states will require an LLC Operating Agreement[3] in addition to your Articles of Organization. Check the requirements for your specific state before you prepare this document.
Most Operating Agreements include:
- Member ownership share percentages
- Voting rights
- Profit/loss distributions
- Meeting and voting rules
- Buyout and buy-sell agreements
- Duties of LLC members and managers
Obtaining An EIN
An Employer Identification Number (EIN) is a tax number that identifies business entities for tax purposes. LLCs need to have an EIN. If you’re a US citizen forming an LLC, you can apply for this online for free and generate your EIN immediately. Foreign applicants cannot apply online.
An EIN is necessary for an LLC to file tax returns. Although you don’t have to apply for it at the same time as you form your LLC, it’s a good idea to apply immediately so you don’t forget later. If you’re working with an LLC formation service, check if they offer an EIN application service to make it even easier for you.
Final Thoughts
Every LLC needs a registered agent in each state where they operate. If you’re starting an LLC, you have to include your registered agent as part of your application. Hiring a registered agent service keeps your business running smoothly, helps you avoid penalties from delayed response to service of process, and allows you to be in good standing with your state, no matter where, when, or how you’re working.
Frequently Asked Questions (FAQs)
A registered agent, also known as a resident agent or statutory agent, is a person outside the company who is authorized to accept service of process, legal papers, and official documents on your company’s behalf. If you are issued service of process, tax documents, or any other official notices, your registered agent is the only one who can be accepting official correspondence for your company during regular business hours. An LLC registered agent can be a specific individual or a separate company.
Professional registered agents are always available during normal business hours, never change location, and allow you to keep your business or home address out of the public record. This frees you up to work at the hours you prefer from any location you need to, rather than having to be available at your registered agent’s address during business hours.
Because a main registered agent requirement is that the registered agent information should be public, your registered agent can also intercept the junk mail that would otherwise be sent to you. They can receive it on your business’s behalf and organize it so you can conduct business without having to deal with the hassle of sorting through official mail and spam every day. For small business owners, this is a big time saver.
You can be your own registered process agent, but it’s not always a good idea, even for a small business. Registered agents must be at their designated location regularly during normal business hours, and their address is listed in the public record. Registered process agent services keep your address private and are always available, even when you can’t be. You’ll be able to receive legal notices in a timely manner.