Frequently Asked Questions

Why do states require business entities to have registered agents?

States require business entities to have registered agents primarily due to the necessity of due process. The concept of due process stipulates that lawsuits and legal actions cannot proceed until a business or entity has been properly notified. Without a physical address and an established point of contact, this notification process can become challenging. A registered agent is a designated third-party that resides in the state where the business LLC formation is being filed. They are responsible for receiving all correspondence and notices such as process notices, Secretary of State correspondence, and government notifications on behalf of the limited liability corporation. This ensures that there is always a reliable point of contact for the state and any processing bodies. Registered agents are particularly crucial for companies that are not based in the state where they are doing business, as there must be an in-state contact for legal purposes. They act as the primary point of contact for an LLC in the event of a legal process and are responsible for maintaining an accurate record of the company's information relevant to its business operation.