Registered agent: what it is and whether you need a paid one

Step by step

1. 1

   What the agent does

   The agent accepts lawsuits, legal notices and official state mail for your company and forwards them to you. The agent's name and address go into the papers you file with the state, and they are easy to look up: California, for example, shows the agent in its public business search.

2. 2

   The address rules

   The agent needs a street address in the LLC's state where papers can be handed over in person during business hours. A mailbox service or an answering service alone is not enough. Delaware requires agents to keep a street address and office in Delaware.

3. 3

   Can you be your own agent

   Yes, if you live in that state and are at that address during business hours. In Texas, an owner, officer or employee can serve, but the LLC cannot be its own agent. If you live in another state or abroad, you need an agent in the LLC's state.

4. 4

   What a service costs

   Usually $100-$300 a year, for example: Stripe Atlas $100 from the second year, Rocket Lawyer $125 on its Plus and Pro memberships, Bizee $149 after a free first year, ZenBusiness and Tailor Brands $199, LegalZoom $249, Firstbase $299. doola includes the agent in its Starter plan at $297 a year plus the state fee.

5. 5

   Watch the renewal

   A free or included first year usually turns into a paid subscription that renews automatically: Bizee then charges $149 a year, Stripe Atlas $100 a year.

6. 6

   Changing the agent

   You can switch agents by filing a change with the state; in Delaware an LLC pays $50 for it. Do not leave the company without an agent: in Texas, that can lead to involuntary termination of the LLC.

7. 7

   Agents in other states

   If you register the LLC to do business in another state, you name an agent there too. For an out-of-state company that does not keep an agent, Texas can revoke its registration.