Every entity formed by the state needs a Registered Agent. All nonprofits, small LLCs, corporations, and any other entity formed by your Secretary of State needs one.
Entities are not Humans
An entity formed by the state (LLC, corporation, etc.) is a separate “person” and a separate taxpayer, but it is only an imaginary person formed by a legal contract between you and the state. It is not human and does not live anywhere.
Since it is not a human that lives in a house, how do you track it down and hand it legal papers? How does the government come after it for back taxes or illegal activity?
A Registered Agent is the physical human contact point for an entity. If you look on your Secretary of State’s website, you can search for any entity in your state and see their Registered Agent. That is the legal physical address and point of human contact for that entity.
Is the Registered Agent who is in charge?
No. They are not required to have any relation to the company other than serving as a point of contact and legal address. You can choose your accountant or attorney or anyone else to serve as your Registered Agent, as long as they have a stable physical address.
Can I be my own Registered Agent?
Yes you can! Many companies that sell Registered Agent services are happy to leave out the fact that you can be your own Registered Agent. You do NOT need a third party.
However, remember that the point of contact is public information. If your business is in your home, you may consider using a third party, so your home address is not public information.
Is the Registered Agent’s Address the same as the business location?
No, not necessarily. The physical address as a point of legal contact has nothing to do with where, or even if, the entity operates a business. You can operate a business in other states or other countries, or not operate a business at all. The Registered Agent is the point of contact for the entity, not for its business.
Is that all a Registered Agent does?
Every state varies. In 2007, and association of lawyers made a standardized set of rules for states to adopt to make state laws more uniform. At this time only 11 states have adopted the Model Registered Agents Act (MoRAA) and 4 more made similar laws. However, the laws in most states are very similar.
Most times, the address of the Registered Agent is also the address that determines what laws apply and where court cases are heard if multiple locations are involved.
My state doesn’t have Registered Agents
Every state requires something similar. Your state may call it an Office for Service of Process, or a Registered Office, but it serves the same purpose: Putting a human face and address on a non-human entity.
Does Grass Roots Taxes serve as a Registered Agent?
Yes we do! GRT is the Commercial Registered Agent to over 100 entities in the state of Arkansas.
Arkansas has adopted MoRAA and allows for Commercial Registered Agents. This means you can keep your personal information private and never share your home address.
More on Small LLC issues:
- Piercing the Corporate Veil for Small LLCs
- Do I need to have an Annual Meeting?
- Should I be sending out 1099s?
How can I find out more about it?
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