Introduction
Suppose you are registering an LLC business in the United States. In that case, you need a registered agent (also referred to as a resident agent or statutory agent) to receive government correspondence, summons, and compliance documents and deliver these safely to the LLC members. Employing your registered agent gives LLC members peace of mind knowing that the agent will receive any pending lawsuit or regulatory material and safely deliver these to the relevant member of the company.
A new registered agent acts as a third-party intermediary between the state government and the company. An LLC registered agent must live in the same U.S. state where the business is registered. The registered agent for an existing business is often the company’s lawyer, but it can be an employee.
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What Is A Registered Agent?
Most U.S. states require LLC businesses to appoint and use a registered agent in the geographic area where the business is registered. Selecting a registered agent is part of being industry compliant in the U.S. It is not advisable to ignore hiring a registered agent to document your new business, manage and control all government mail, submit AGM reports, and tackle legal issues.
If you register a new business and fail to appoint a registered agent, you will have to do the work on your own. If you do things incorrectly, your qualification documents could be canceled. Any company that doesn’t employ a registered agent risks losing the firm, having it suspended, or possibly being compromised in a legal dispute with another party. The relationship between the company and the agent should be a permanent arrangement built on loyalty and trust.
What Does A Registered Agent Do?
A registered agent receives these documents on behalf of the LLC business and delivers them to the company:
- All official federal and state correspondence
- All court orders for lawsuits
- Subpoenas
- All internal revenue service (IRS) tax and local tax documents
- Court summonses
- Corporate notifications such as annual reports
- Garnishment notices
Registered agents receive important tax notifications and compliance information from the state. They are the go-between the state and the company.
What Qualifications Are Needed?
You don’t need a formal degree or training to become a registered agent. A registered agent must be a resident of the state where the business entity is registered and have a physical address within that state — a post office box is not a physical address. They must also be available every day of the year during office hours.
The requirements differ slightly from state to state. Colorado requests a minimum age of 18, and Virginia requires the registered agent to be an attorney or part of the corporation’s management. It’s advisable to check each state’s requirements before appointing someone as a registered agent.
The reason why the registered agent must be available throughout the year during regular business hours is critical. If someone is filing a lawsuit against your company, and your company members do not receive the summons, the person filing the case could apply to the court for substituted service. If the court decides that a company avoids the summons, they may send a litigation notice. In that case, the case can still proceed, but the sued company may forfeit its right to a defense.
It is essential to employ a professional registered agent service company to meet the regulatory company requirements. The LLC avoids any misunderstandings with U.S. state rules and regulations when hiring registered agent services.
Hiring Registered Agent Services
Hiring a registered agent service is the way to go if you are starting a new business. It makes your life easier, and when you are working with state legislation, it is far better to deal with a professional than try to battle the logistics yourself. These are some of the benefits of a registered agent service.
Keeps You Informed
Registered agent services keep business members informed on legal and accounting matters, deal with legal fees and penalties, and advise on new or changed state regulations. A reliable registered agent service receives and accepts corporate and legal documents and delivers them to the LLC member at their convenience. They are also filed safely by this third party. Registered agents give advice, guidance, and support to ensure that your business is compliant. They act as a sounding board for ad hoc problems in business management.
Allows You Time To Work
A registered agent service takes all the worry away from the LLC members by controlling all the business compliance regulations. It allows members to focus on the business itself and maintain a work-life balance. A registered agent service gives you the ability to focus on your business instead of keeping track of state regulation deadlines.
Allows You To Operate In More Than One U.S. State
If you don’t want to hire a registered agent and decide to do the job yourself, you must be available every day of the year during normal business hours at the business address you provide.
If your business spreads and you need to register an LLC in another state, you cannot do this by operating alone. Hiring registered agent services who have a physical presence in the states where the business operates makes life much easier. Registered agent services can form an LLC for you in any of the 50 states, and they can advise you on the rules and regulations in each state.
Your Physical Address Stays Private
A registered agent service prevents you from being served with a lawsuit at your home or office because your registered agent service’s address is the address listed on the public record, and so your privacy is maintained.
Registered Agent Services — What Makes Them The Best?
A registered agent service acts as a receiving and holding vessel for all critical business compliance and legislation documents. They should add value to your business reputation because they are ahead of the timeframes and deadlines.
Does it sound like an easy DIY job? The work is not difficult, but it is not a DIY job. It needs someone with a keen eye for detail who is constantly available and accountable. The ideal registered agent is familiar with federal and state legislation, filing updates on the business movements, handling the receiving and delivery of all sensitive documents, and chasing deadlines. That is worth paying for rather than going down the do-it-yourself route. These are the features that you should look out for in reputable registered agent service.
Excellent Customer Service
The registered agent service must have a customer service team to assist with any queries you may have on any day. They should be knowledgeable about compliance rules in all 50 states and advise on differences between them. Good customer service means having a dedicated compliance team with good communication skills and accurate time management.
Accomplished registered agent services with excellent customer service can handle pressure and deadlines in a business and know when final annual reports and tax returns are due. The registered agent must have the ability to be on the receiving end of dealing with people and remain calm. Someone honest, knowledgeable, and proactive is a good choice.
Protects The Company’s Reputation
A reputable registered agent knows all the compliance rules and tools to help you navigate regulations. These regulations are things like filing timeous annual reports rather than risking your reputation with the secretary of state. Having a good reputation gives you a better shot at getting a business loan and attracting more customers.
Provides National Registered Agent Services
A national registered agent service can handle all the logistics for you in every state your business operates. As successful companies expand and grow into new states, each branch of the business requires a registered agent resident in each state. A mountain of extra paperwork compounds the risk of forgetting deadlines.
When you have a single nationwide registered agent service, they can handle each state’s requirement through a single nationwide registered agent service. A national agent service must access documents, print reports, share notices, and manage corporate filings for every state registered. They should contain all of the paperwork associated with appointing and renewing your registered agent, including tracking and preparing all filings.
If you have several branches in your business operating in several states, a nationwide agent consolidates everything in one system.
Provides Same Day Service
At the very least, your registered agent should provide same-day electronic uploading and processing of all documents, and they should notify clients when forwarding a copy. They should alert clients of any urgent legal matters and give them as much time as possible to respond to critical documents.
The Top Registered Agent Services in 2022
$49 + State Fees
Varies By State & Package
$39 + State Fees
Varies By State & Package
$0 + State Fees
Varies By State & Package
Zenbusiness
Zenbusiness was the most highly recommended registered agent in 2022. Zenbusiness’s standard package is $99 per year to register agents, control compliance, and give access to online documents. It includes 1-year free registered agent services. The complete package is $149 a year and offers everything in the standard package plus the added benefit of filing all corporate documents.
Zenbusiness has received multiple positive reviews for its affordability, support, and guidance. It offers an all-inclusive business formation service with additional services and add-on products. This company has fixed its offering into packages, and there is little flexibility with choosing your assortment of add-on features.
Better Legal
BetterLegal is a top-notch business that gives its clients support according to individual needs – something that is often widely overlooked. Each company and what they require when starting differs, and it is vital to find a service provider that will assist your specific requirements. A quality BetterLegal brings to the table.
BetterLegal offers set packages with an extensive list of add-ons. Their packages are customizable and will get you what you want within a few business days. The point is. When you start a business, there is a lot to consider, and the paperwork should not be it. As an entrepreneur, you need to take the necessary steps – now. So, if you want speed and efficiency, BetterLegal is what you need.
Northwest Registered Agent
Northwest Registered Agent offers LLC incorporation services in all 50 states (including Puerto Rico) and has been operating for over 20 years. The company prides itself on rapid, personalized customer service via phone and email and free online registered agent services. Their packages are $125 a year. Northwest Registered Agent has corporate guides who can answer any questions, even assisting Spanish-speaking clients.
Incfile
Incfile is a popular registered agent because the company offers a package for $119 with value-added features. They provide an end-to-end service preparing and filing documents with the state and delivering them to the company after filing. Incfile will issue a full refund if they cannot file your business. The company has an LLC learning center, which helps with training. Their graphic user interface is straightforward and uncomplicated. It allows business owners to track and access critical business documents with ease.
Although Incfile was rated third best in this survey, reviews for this company were not consistent on other third-party sites. For example, the company is rated 2.1 out of 5 on TrustPilot and 2.0 out of 5 on Yelp.
Rocket Lawyer
Rocket Lawyer’s registered agent services cost $149.99 a year. The company’s point of difference is that they offer attorney consultations and personal legal forms. They have positive customer reviews and various products, including managing government documents and franchise tax forms. If you subscribe to the accelerated legal service plan, you get a full year of free registered agent service. Last but not least, this could be considered the best registered agent service in 2022, or, at least, one of the best.
LegalZoom
LegalZoom is more expensive than the other registered agents, and they have flexible pricing in three different packages. The economy package is $79, the standard package is $329, and the express gold package is $349. All packages exclude state filing fees. The economy package takes 20 business days, the standard package takes ten business days, and the express gold package takes 2-5 days. The company offers a 100% customer satisfaction guarantee and global registered agent services. If you need tax advice or additional legal advice, the company offers these services online.
Conclusion
Professional registered agent services are abundant in the U.S. They are constantly evaluated on pricing, features offered, user reviews, customer support and assistance, accessibility, and transparency. So they have nowhere to hide. Having a registered agent is not a negotiable nice-to-have luxury when venturing into business formation. It is an essential part of having a successful and reputable business model. The registered agent services must provide the best value for the business to launch and grow successfully.
Before deciding which agent to choose, consider the type and needs of your business and what additional services you might find helpful in the long term.
Frequently Asked Questions
How Can I Become a Registered Agent?
To qualify as a registered agent in your state, you need to file the correct change of registered agent form with your state. Secondly, you need to file your new company’s formation documents and list your name as the registered agent. The annual report must also be updated. Certain states, such as Delaware and Colorado, allow you to be your registered agent, but most other states insist on businesses having a registered agent service.
Can I Change My LLC Registered Agent Service?
Yes, you can change your registered agent service. You do this by filling the form with the appropriate state agency. Different states have different processes and documents.
What Does Service of Process Mean?
When a company receives a court order to appear before a judge in a pending lawsuit, the service of process refers to legal documents or summons being delivered and accepted.
Is a Registered Agent Liable?
Registered agents are not answerable to the debts and obligations of their clients. If, however, a registered agent fails to notify the company of any vital government or legal documents, they may have to pay damages to the court in this situation.
Are There Any Free Registered Agent Services?
The only free registered agent service is if you become your registered agent. However, in doing this, you must be available during normal business hours throughout the year. The best-registered agent services offer a free year of administration if you register your business with them.
The Best Registered Agent Services For LLC in 2022
Suppose you are registering an LLC business in the United States. In that case, you need a registered agent (also referred to as a resident agent or statutory agent) to receive government correspondence, summons, and compliance documents and deliver these safely to the LLC members. Employing your registered agent gives LLC members peace of mind knowing that the agent will receive any pending lawsuit or regulatory material and safely deliver these to the relevant member of the company.
A new registered agent acts as a third-party intermediary between the state government and the company. An LLC registered agent must live in the same U.S. state where the business is registered. The registered agent for an existing business is often the company’s lawyer, but it can be an employee.
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