Role of a Resident Agent
A resident agent acts as a legal representative for a business. The primary function is to accept delivery of legal documents like government notices, subpoenas or lawsuit papers. Once documents are received, the law says the business has notice.
A resident agent provides an address where important legal documents can be delivered. This ensures orderly legal service. All formal businesses need a resident agent, including corporations and LLCs. Most states require it. The agent must have a physical office address on public record. This allows you to comply with legal processes.
As legal experts, resident agents understand complex laws. They help guide businesses through regulations. They are the first defense against lawsuits.
Role of a Registered Agent
A registered agent is designated by filing a form with the Secretary of State. The form names an individual or company as the registered agent. To change agents, get a form from the state and file it with fees.
You can designate a person or company. States require agents so out-of-state businesses have local representation. Using your home address makes you easily available. A company keeps your home address private.
Primary Function of a Registered Agent
A registered agent (RA) is a company’s official contact for receiving vital papers such as a summons, subpoena, or renewal of registration. It will cost between $100 and $300 each year to engage a corporation to act as your registered agent.
One of your responsibilities is to act as the official point of contact for legal paperwork. If you are starting an LLC, you need to have a registered agent. Whether you use a service or assign someone who you know, registered agents are not optional.
A registered agent (also called a resident agent or statutory agent) is responsible for accepting service of process on behalf of the company it represents.
Importance of Registered Agent
One of the primary benefits of appointing a registered agent is that they provide businesses with legal representation and ensure compliance with state regulations. This is particularly important for businesses that operate across multiple states, as each state may have different requirements for maintaining a registered agent.