Why Do You Need a Registered Agent for Your Business?

By  //  August 10, 2022

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If you plan to register your business as a corporation or an LLC, you may have heard the term “Registered Agent.” A Registered Agent is a must-have in all states for all businesses registered as corporations or LLCs.

If this is a new term, you could wonder what it means and how to get one. This guide offers a comprehensive look into a Registered Agent from what it is, how to get one, and the role it plays in your business. 

What Is a Registered Agent?

A Registered Agent is an entity you appoint to receive legal correspondence and other business-related documents on behalf of your business. 

For example, if someone wants to serve your business with a court order, they will need to serve the registered agent. Serving a court order to a business’s registered agent is especially critical in states that require a court order to be served in person.

Once you designate an entity as your Registered Agent, their contact information becomes public so an outsider can know who to contact when delivering documents to a business.

On your part, having a Registered Agent can help you feel confident, knowing that any correspondence can only come through one avenue minimizing the chances of information falling through the cracks.

Who Is the Right Agent for You

Anybody can be a Registered Agent. Often, small business owners use an employee or partner as their Registered Agent. A Registered Agent must meet certain conditions, such as being over 18, having an address in the state of the business, and being present at the address during work hours. 

Some states have specific laws for Registered Agents, so you may want to seek additional information from a business lawyer or any other person with a similar business structure.

Being at an address every minute during working hours may not be possible for you, your partner, or even your employee. This means neither can make the best Registered Agent for your business.

The most suitable option can only be an independent entity such as a company offering Registered Agent services because it can guarantee availability around the clock.

Why You Need to Use a Hired Registered Agent

Avoid Extra Paperwork

Running a business can generate tons of paperwork; the last thing you want is more paperwork. Also, with tons of paperwork to handle, you do not want sensitive paperwork like court orders or warrants getting lost, which can land you in trouble. 

The cost of hiring an independent Registered Agent can be as low as $100 to $300 a year, which is, by all means, a bargain considering how expensive paperwork mix-ups can be in some situations.


You must make your address public if you are listed as your business’s Registered Agent. Publicizing your address, especially if you list your home address, can significantly compromise your privacy. 

In today’s data age, you must try your best to keep your information as private as possible. Luckily, you don’t have to worry about privacy when you hire an independent entity as your business’s Registered Agent; this is because their office address will be public, not your home address. 

You Do Not Have a Physical Address

If you plan to start a brick-and-mortar business with you or your employees acting as the Registered Agent, you could list your physical location as the address. 

However, if you run a type of business that does not necessarily require you to have a physical address, that option may not work for you. Under such circumstances, hiring an independent entity is a good idea.

Odd Business Hours

One requirement for a registered agent is their availability at the listed address during standard working hours. You should consider getting an independent registered agent if your business can not allow you to be at one location at all hours.