FREQUENTLY ASKED QUESTIONS ABOUT RESIDENT AGENTS--
What is a Resident Agent?
A "resident agent," sometimes called a "registered agent," is someone you designate to receive "service of process" should your business be sued. ("Service of process" refers to the legal papers that start a lawsuit.) The resident agent may also receive official papers from the state government which relate to keeping your business entity in good standing in that state. Most states require business entities that are operating in their borders to designate a resident agent.
Who Can Serve as a Resident Agent?
If your business entity is set up in one state, the registered agent could be a principal of your entity who lives in that state. However, if your entity is doing business in more than one state, you will need to have a resident agent in each of the other states. Resident agents can be individuals who reside in the state or legal entities which are set up to provide such service.
Why Do You Need a Resident Agent?
There are several reasons why, as a business owner, you need the services of a resident agent. First it is a requirement of the state where you set up your entity, whether you operate as a corporation, limited liability company, partnership, etc. The state wants to have a legal address where important papers can be sent and notices provided. Second, failure to have a resident agent with a current address could mean your entity is no longer in "good standing" in that state. Third, if you do not have a resident agent in every state where you do business, you will not know if your business is sued there. That could lead to the plaintiff obtaining a default judgment against your business in their state and then taking that judgment and having it recognized in your home state. Trying to undo that situation could be very costly.
Why Have a Professional Resident Agent?
Hiring a professional to be your RA can be worth the fee. As it is their business, they will act promptly to deliver your paperwork. If you act as the RA or have a "friend" do it, this could lead to the loss of the important papers. If you or your friend move and forget to update the state, that could lead to loss or delay in receipt of the papers. Because the Articles setting up your entity are public documents, if you would like to have anonymity, then letting a professional fill the RA role can help to preserve your privacy.
