If you’ve been considering forming a business (or you’ve already started one), you’ve probably heard the term “registered agent” but may not be familiar with what it means. A registered agent is a designated party that a business has authorized to accept service of process (notice of lawsuits and other legal actions) and essential correspondence from the government on its behalf. Alternate names for a registered agent include statutory agent, resident agent, and agent for service of process.
There are two types of registered agents:
- Commercial registered agent
- Noncommercial registered agent
So, how do they differ, and which one should a business use?
The Model Registered Agents Act of 2006
Although commercial and noncommercial registered agents have the same responsibilities and must meet the same statutory requirements in the state (such as having a physical address there), they differ in various ways. The Model Registered Agents Act (MoRAA ) in 2006 created two distinct classes of registered agents, distinguishing those who have filed a special listing statement with a state’s secretary of state office (commercial registered agents) and those who have not (noncommercial registered agents). The Act governs the process for registering agents of process and provides commercial registered agents with simplified procedures for listing themselves in a state.
Some states have fully adopted the MoRAA distinctions of commercial and noncommercial, while others have crafted similar provisions for their jurisdictions or have their own rules entirely. Essentially, in the states that have adopted the Act, MoRAA promotes uniformity for registered agent filings. It provides states with one registered agent database and a uniform registration procedure no matter what kinds of business entities the agent represents. Because not all states conform to MoRAA rules, business owners should research their state’s requirements for designating and maintaining a registered agent.
At the time of this writing, according to Uniform Law Commission’s Registered Agents Act map, the states that enacted MoRAA rules and recognize two distinct classes of registered agents include:
- Arkansas
- District of Columbia
- Idaho
- Indiana
- Maine
- Mississippi
- Montana
- Nevada
- North Dakota
- South Dakota
- Utah
- Wyoming
What Is a Commercial Registered Agent?
A commercial registered agent has filed a special listing statement with the state authority (usually the secretary of state office) responsible for business registrations and compliance. By doing so, it streamlines the flow of information between the registered agent and the state. Information that a commercial registered agent provides to the state includes its company name, entity type, and the address to which the service of process should be sent. States maintain a list of the available commercial registered agents in their jurisdiction.
Commercial registered agents often maintain a physical address in multiple states and work with many business entities (possibly hundreds, thousands, or even tens of thousands).
What Is a Noncommercial Registered Agent?
Noncommercial registered agents are typically small companies or individuals who have not filed a statement with the secretary of state to be listed as a commercial registered agent. They typically provide services in only one or a few states, and they usually work with fewer businesses than commercial registered agents do.
4 Advantages of Using a Commercial Agent
Business owners can benefit from using a commercial registered agent for a variety of reasons.
1. Makes it Easier to Expand into Another State
Registered agents, like CorpNet, that provide services to business entities in all 50 states help make it simpler for companies to expand their operations. For example, suppose a Texas business called ABC Auto Parts, Inc. wants to open a store in Arizona. The owners will need to designate a registered agent located in Arizona when filing to foreign qualify to do business in that state. If the commercial registered agent the company uses in Texas is also authorized to handle service of process in Arizona, the business owners don’t have to go through the time and effort to find a new registered agent in that state.
2. Saves Time and Provides Peace of Mind by Handling Other Formation and Compliance Filings
Some commercial registered agent companies will not only accept legal process, notices, and other communications but also prepare and submit compliance filings on behalf of their clients.
An agent with those capabilities can take care of online filings for a wide range of requirements at the state, federal, and local levels:
- File articles of incorporation (to form a C corporation)
- File articles of organization (to form a limited liability company)
- File a foreign qualification
- File a DBA (fictitious name registration)
- File Initial reports and annual reports
- S corporation election
- Request EINs (Federal Tax ID Numbers)
- Register for business licenses
- Register for sales and use tax permits
- Register for payroll taxes
- And many more Secretary of State filings
3. Manages and Protects Important Documents
With an experienced and responsible registered agent, you can feel confident your critical business documentation is received and handled by a trusted resource.
Some specific examples of the necessary documentation registered offices will receive for their client companies are:
- Official federal and state correspondence
- Subpoenas for information
- Tax notices from the IRS and state and local tax authorities
- Lawsuit notices (e.g., complaints, motions)
- Court summonses
- Wage garnishment notices when ordered to withhold a portion of your employee’s wages and send it directly to a person or organization to which that worker owes money
- Corporate filing notifications
In addition, commercial registered agents often deliver a more sophisticated and secure experience. A secure client portal helps eliminate back-and-forth emails, enables efficient document processing, and ensures timely notifications so critical filings don’t fall through the cracks.
4. Offers the Convenience of a Single Point of Contact
If you have businesses in multiple states and have different registered agents in each state, you’ll receive notices and communications from various sources rather than just one contact. Moreover, you’ll have multiple registered agent online portals to maintain accounts on and check for updates. That can become confusing and overwhelming!
But if you have a commercial registered agent listed in all 50 states to cover all of the states your business operates in, you can spend less time on administrative efforts and more time on productive business initiatives.
Choose CorpNet as Your Commercial Registered Agent
No matter where you form your business in the U.S. or where you expand it — CorpNet has your registered agent requirements covered in all 50 states and Washington D.C. We’ll save you time and simplify managing your formation and ongoing compliance filings, too!
How to Appoint or Change a Registered Agent
Before you inform the state of your appointed registered agent, it’s important to talk with the commercial registered agent and sign up for a service plan. Sometimes, registered agents that do formation filings will include registered agent services at no charge for a period of time after you use them to handle prepare, and file your business registration documents. Some commercial registered agents also provide discounts to companies that have multiple entities, have multiple locations, or have signed up for a multi-year contract.
If you have an existing registered agent, you have the option of changing if you find an agent you have more confidence in and that offers the services you need for keeping your business compliant and in good standing with the state. After ending services with the existing registered agent and securing registered agent services from a new provider, you should notify the state of the change. The requirements vary from state to state, but generally, changing your existing registered agent is a simple and cost-effective process.
What’s Required in Your State?
If you’re not sure what’s required in your state of formation, click on a state below to learn more. We’ve provided detailed registered agent information by state to help you stay in compliance.
- Alabama Registered Agent
- Alaska Registered Agent
- Arizona Registered Agent
- Arkansas Registered Agent
- California Registered Agent
- Colorado Registered Agent
- Connecticut Registered Agent
- Delaware Registered Agent
- Florida Registered Agent
- Georgia Registered Agent
- Hawaii Registered Agent
- Idaho Registered Agent
- Illinois Registered Agent
- Indiana Registered Agent
- Iowa Registered Agent
- Kansas Registered Agent
- Kentucky Registered Agent
- Louisiana Registered Agent
- Maine Registered Agent
- Maryland Registered Agent
- Massachusetts Registered Agent
- Michigan Registered Agent
- Minnesota Registered Agent
- Mississippi Registered Agent
- Missouri Registered Agent
- Montana Registered Agent
- Nebraska Registered Agent
- Nevada Registered Agent
- New Hampshire Registered Agent
- New Jersey Registered Agent
- New Mexico Registered Agent
- New York Registered Agent
- North Carolina Registered Agent
- North Dakota Registered Agent
- Ohio Statutory Agent
- Oklahoma Registered Agent
- Oregon Registered Agent
- Pennsylvania Registered Office
- Rhode Island Registered Agent
- South Carolina Registered Agent
- South Dakota Registered Agent
- Tennessee Registered Agent
- Texas Registered Agent or Statutory Agent
- Utah Registered Agent
- Vermont Registered Agent
- Virginia Registered Agent
- Washington Registered Agent
- Washington DC Registered Agent
- West Virginia Registered Agent
- Wisconsin Registered Agent
- Wyoming Registered Agent
Pay Attention to the Details
When designating a registered agent, it’s important to complete the state paperwork correctly. Typographical errors or other mistakes could result in the state not recognizing the appointment. On forms that differentiate between “commercial” and “noncommercial” registered agents, it’s crucial to identify the correct type to avoid issues down the road. Any inaccuracies in registered agent information might prevent important notices and time-sensitive correspondence from reaching businesses. Ultimately, that can lead to legal problems and noncompliance with a state’s business regulations.
References and Resources:
- Model Registered Agent’s Act. International Association of Commercial Administrators Accessed 2 July 2021.
- Uniform Law Commission Registered Agents Act Enacted Map. Accessed July 5, 2024
