In most states, the difference between a noncommercial and a commercial registered agent is that the commercial registered agent is registered with the Secretary of State in the state it wants to operate. The duties and responsibilities of both types of registered agents are the same.
What Is a Commercial Registered Agent?
In most states, a commercial registered agent is a registered agent that has registered or filed a registered agent business listing with the Secretary of State. In Delaware, a commercial registered agent is a registered agent with more than 50 clients.
Requirements vary by state, but a commercial registered agent will typically be a business entity and not an individual. Delaware is another exception here in that it allows individuals to be commercial registered agents as well. There are several reasons why a registered agent may choose to be a commercial registered agent instead of a noncommercial one.
Easier to Make Changes
Suppose the commercial registered agent needs to make a change about itself, such as its business name or address. In that case, it only needs to file one form and pay one fee to update the information for all the business entities it represents.
Easier to Get Set Up New Clients
The exact operation may vary among states, but commercial registered agents may find it easier to establish a new client because a new client can automatically choose a commercial registered agent without the registered agent having to do anything.
For example, let’s say you own and operate a commercial registered agent company that goes by the name “Acme Registered Agent Services.” Then one day, Jones Publishing hires your company to be its registered agent.
All Jones Publishing has to do is file the necessary paperwork with the Secretary of State indicating that Acme Registered Agent Services will be its registered agent. In other words, your company doesn’t need to do anything to officially establish Jones Publishing as your new client.
In situations where an entity chooses you to be its registered agent, but you want to decline them as a client, you can usually file a non-acceptance form with the Secretary of State within a certain period of time (such as 14 days) of being chosen as a registered agent.
Increased Visibility to Prospective Customers
Many states that differentiate between commercial and noncommercial registered agents will have an online registry listing only the commercial registered agents. This means almost anyone with an Internet connection can view a list of commercial registered agents in the state they can choose to hire.
An example of this type of registry can be found on the Pennsylvania Department of State’s website. There may be a fee required to be included in such a listing, however. For example, the fee is $100 in Mississippi.
What Is a Noncommercial Agent?
In most states, a noncommercial registered agent is a registered agent that has no registration or filing with the Secretary of State. In at least one state, such as Delaware, a noncommercial registered agent is a registered agent with 50 or fewer clients.
Generally speaking, states that recognize a difference between commercial and noncommercial registered agents do not place additional requirements or limitations on noncommercial registered agents. For instance, in South Dakota, the commercial versus noncommercial status of a registered agent does not affect the ability to charge for registered agent services.
Which States Provide a Registry of Commercial Registered Agents?
There are at least 15 states that have a registry for commercial registered agents. These include:
- Arkansas
- California
- Delaware
- Idaho
- Indiana
- Maine
- Mississippi
- Montana
- Nevada
- North Dakota
- Pennsylvania
- South Dakota
- Utah
- Washington, D.C.
- Wyoming
Conclusion
From the perspective of the entity hiring a registered agent, there’s little difference between a commercial and a noncommercial registered agent. The biggest difference is that finding a commercial registered agent may be easier because they’re usually listed on the Secretary of State’s website. From the perspective of the registered agent, being a commercial one can make taking care of administrative requirements a bit easier.