A registered agent can be either an entity (such as LLC or corporation) or an individual. In the case of individuals, almost any adult can be a registered agent. As long as they’re at least 18 years old and have a street address in the same state as your company, they can most likely serve as your registered agent.
The more practical question isn’t who can be a registered agent. Rather, it’s why someone should choose one person to be a registered agent over someone else.
General Requirements for Registered Agents
The exact requirements will vary from state to state. That being said, most states will have the following requirements for registered agents:
- They must be a resident of the same state as your company.
- They must have a physical mailing street address to receive documents; P.O. boxes are not allowed.
- The registered agent must be physically present at the registered physical mailing address during normal business hours.
- If the registered agent is an individual, they must be at least 18 years old.
Can a Registered Agent Be a Member of the LLC?
Yes, but that may not always be practical or wise. From a practical perspective, the member of the LLC who is a registered agent must be physically present at the LLC’s physical address during all business hours. This means if they’re in a meeting, on vacation, or out sick, they can’t accept important documents on behalf of the company while they’re away.
Another potential drawback with using an LLC member as a registered agent is that, most likely, they’ll register their physical address as the same location as the LLC. There’s nothing inherently wrong with this. However, if a law enforcement officer or process server makes a delivery or serves the LLC, it might be in front of customers, clients, and/or business partners. This might create questions about whether the LLC is in financial or legal trouble.
Can the Owner Be a Registered Agent?
Yes, if you’re the owner of your business, you can be your own registered agent as long as you meet the above-listed requirements. But there are risks and drawbacks to being a registered agent and owner of your business. These mirror the problems with having an LLC member serve as your company’s registered agent.
Keep in mind that even if the owner can be a registered agent, some states such as California, will not allow a business entity to serve as its own registered agent (also known as an agent for service of process).
Can I Use a Mail-Forwarding Company as a Registered Agent?
It depends. In theory, a business that only acts as a mail-forwarding company probably can’t serve as your company’s registered agent. This is because the physical address of the mail forwarding company may not be in the same state as your company. There’s also a possibility that the physical address of the mail forwarding company isn’t the same as the physical address attached to your company’s registered agent.
In practice, you can probably use a mail forwarding company as your registered agent because many mail forwarding companies offer registered agent services to their customers.
Can a Registered Agent Be a P.O. Box?
No, because the majority of states require the registered agent to have a physical street address. Also, recall that part of the registered agent’s duties is to be physically present at the registered address during normal business hours. This allows them to receive delivery of mail or other important documents personally. This would not be possible with a P.O. Box.
Who Should I Hire as a Registered Agent?
When deciding who to have as a registered agent, the first major decision is to decide if you want to use a company, such as a registered agent service, or an individual. And if you choose to use an individual, you’ll need to decide what kind of individual to use. Below is a discussion of common registered agent choices and the pros and cons of each.
Registered Agent Service
Pros
- They offer privacy in that the address of a registered agent service won’t be a personal or home address and any service of process is made away from the eyes of customers or clients.
- They are professionals and know the ins and outs of what they must do to carry out their duties as registered agents.
- They often operate in multiple states, making it easier to have one registered agent serve various jurisdictions. This is especially handy if you want to expand quickly.
Cons
- They cost money. Although they’re not expensive, they can cost a few hundred dollars a year.
- The business owner has less control over how and when they manage their paperwork.
- Creates additional paperwork for a company by hiring an outside entity to handle part of the business’ operations.
Business Accountant
Pros
- The business probably already has an accountant and this individual is motivated to act in your company’s best interests.
- Many accountants are in the office during not just normal business hours but early in the mornings and late into some evenings.
- Could cost less money than hiring a registered agent, at least if your business accountant is also an employee of your company.
Cons
- Handling registered agent duties may take time and attention away from their primary duties of handling your company’s finances.
- Most accountants only practice in one or a small handful of states. So if you plan to expand quickly or broadly, an accountant may not be ideal.
- Because an accountant has other duties, it’s more likely they’ll forget to notify you of an important document that was just delivered.
Lawyer
Pros
- Could potentially be cheaper than hiring a registered agent service.
- Many businesses already have an attorney, either in-house or an outside firm, so hiring them as a registered agent doesn’t involve bringing in a total stranger.
- Lawyers often have experience receiving important legal documents and promptly responding to them.
Cons
- Lawyers are rarely licensed in more than three states. So they may not be a good choice if you plan on expanding to a state that your lawyer doesn’t practice in.
- A lawyer acting as a registered agent may charge you the time it takes for them to handle your important mail. This may not be a lot of money, but in most cases, you’ll be overpaying for what you get.
- Lawyers can get very busy and often spend time outside the office in court, at meetings or attending legal conferences with other attorneys.
Conclusion
The qualifications to become a registered agent are relatively modest. But this doesn’t mean you should hire or appoint just anyone to serve as your company’s registered agent. There are special factors to consider when choosing a registered agent, including maintaining privacy, ensuring availability during business hours and knowing what to do when important documents get delivered.