What is a registered agent, and do you need one?

A registered agent is the person or company that accepts legal papers and official notices for your business. If you are sued, the court papers go to the agent. The state's notices, including annual report reminders and tax correspondence, go there too. The agent forwards them to you.

The agent must have a physical street address in the state, not a post office box, and be available there during normal business hours. Every state requires one for every LLC and corporation formed there, and for foreign entities registered to do business there.

You, an owner, an employee, or a friend can be your own agent if they live in the state or have a physical address in it. Or you can hire a commercial registered agent company, which handles it for a yearly fee.

Serving as your own agent costs nothing and works if you are reachable at a stable address during business hours. The downsides are practical. The address becomes public record and appears in state databases, so your home address may start receiving solicitations. A process server could arrive in front of customers or family. If you travel or move, nobody receives the papers, and a missed lawsuit can lead to a default judgment against the company.

A commercial agent keeps your address off the public record, scans and forwards what arrives, and is always staffed. This becomes more useful as you register in more states, because one provider can cover them. Look for same-day forwarding of legal papers, clear pricing for each state, and an easy way to change the agent if you switch.

A registered agent receives paper. It does not file your annual reports, prepare your tax returns, give you legal advice, or keep your books. Some services bundle other services, but that is a separate product. Do not assume the agent is watching your deadlines for you unless you have confirmed that it is.

File the change with the state, and wait until the state shows the new agent before telling the old one to stop. A gap in coverage is when missed notices happen. When the agent's address changes, update the record with the state promptly.