What is a Registered Agent?

A registered agent is a person or entity designated to receive legal and official documents on behalf of a business and is required for corporations, limited liability companies (LLCs), and other formal business entities. The registered agent serves as the official point of contact between the business and the state in which it operates, ensuring that important communications are received and addressed promptly.

The Importance of a Registered Agent

• Legal Compliance: Most states require businesses to have a registered agent when forming and maintaining a business entity. This requirement ensures that the state has a reliable way to deliver legal documents such as service of process notices, tax forms, and annual report requests.

• Timely Receipt of Legal Documents: The registered agent receives critical legal documents, including lawsuits or summonses. Prompt receipt and response to these documents are essential to protect the business's legal rights and avoid default judgments.

• Maintaining Good Standing: By ensuring that all official documents are received and responded to appropriately, a registered agent helps the business maintain good standing with the state, avoiding penalties, fines, or dissolution.

• Privacy Protection: Using a registered agent allows business owners to keep their personal addresses off public records, enhancing privacy and reducing the risk of unwanted solicitations or security concerns.

Use an Attorney as Their Registered Agent

While anyone who meets the state's requirements can legally serve as a registered agent, including business owners themselves, it may not be the best choice. There are compelling reasons why business owners should consider appointing an attorney as their registered agent. Let's explore them:

• Legal Guidance: Attorneys are trained to understand complex legal documents and processes. If your business is served with legal papers, an attorney, generally for an extra fee, can immediately interpret the documents, provide legal advice, and initiate an appropriate response without delay.

• Compliance: Attorneys stay updated with changes in laws and regulations that may affect your business. By acting as your registered agent, they can proactively inform you of compliance requirements, filing deadlines, and other legal obligations.

• Professional Reliability: Attorneys maintain regular business hours and have staff receive documents at any time during those hours, which helps make sure important communications are not missed due to vacations, illness, or other absences that might affect individual agents.

• Conflict of Interest Avoidance: When internal disputes arise within a company, having an attorney as the registered agent provides an impartial point of contact for legal documents, reducing potential conflicts of interest.

• Privacy and Discretion: Attorneys are bound by professional confidentiality obligations. They handle sensitive legal matters discreetly, protecting a business's reputation and privacy.

• Multi-State Convenience: For businesses operating in multiple states, law firms often can serve as registered agents in various jurisdictions, simplifying the management of registered agent services across state lines.

• Immediate Action: In urgent legal situations, having an attorney receive the documents first allows immediate action. This can be important in time-sensitive cases where delays could have serious legal or financial repercussions.

• Professional Representation: An attorney who acts as a registered agent reflects professionalism and seriousness about legal compliance, which can benefit dealings with regulators, investors, and other stakeholders.

While appointing a non-professional as a registered agent, including yourself, might seem convenient or cost-effective, the benefits of using an attorney far outweigh the drawbacks.

An attorney brings legal expertise, reliability, and professionalism to the role, ensuring that your business stays compliant with state requirements and is prepared to handle legal issues promptly. This peace of mind allows business owners to focus on what they do best—running and growing their business—while trusting that critical legal matters are in capable hands.