So, you’ve decided to incorporate…

You need a registered agent!

A registered agent is also known as a “resident agent” or “statutory agent.” All three terms are synonymous, but the legal jargon for this entity varies by state. 

A registered agent is simply a person or entity authorized to receive official legal documents and correspondence from the state and federal government on behalf of your business. This means both you and your registered agent must be located and operating in the same state. Thus, you cannot run a business in Arizona with a registered agent operating in Michigan. 

A registered agent will submit all the forms and information needed by the state to (a) incorporate in the first place and (b) maintain all aspects of your business, including any submitting extra documents to facilitate a federal status, such as tax exemption. 

Now, you must decide whether to appoint a trusted individual (e.g., yourself or a business partner) or hire a business to act as your registered agent.

Hiring a commercial registered agent can be expensive! If you decide to incorporate with the guidance of a commercial registered agent, you must pay both (a) the state and federal fees for each form submission and (b) the registered agent fees that they require to submit these forms to the state on your behalf. 

The main difference between hiring a commercial registered agent and appointing an individual is the level of support provided. A commercial registered agent ensures that all necessary filings are completed to form and maintain your business. An individual must submit all filings directly to the government and rely on personal research to stay compliant with state and federal requirements.

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The logistics of hiring a commercial registered agent:

1. To find a commercial registered agent in your state, search “registered agents in [your state]" on your preferred search engine. Make sure that they operate in your state and incorporate the type of business you want to form. Call their main number and talk to them! (If they do not answer when you call their main number, they might not answer your emails with the inevitable questions that will come up later…)

2. Pay the commercial registered agent a general fee ranging from $50 to $300. (You can always add extra features or pay for extra help later! Start with the minimum amount required to make an account.)

3. Fill out forms on their website answering what type of business structure you want to form, who else will be involved in the leadership of your business, and your business’s address. Your answers will be funneled into formation documents that specify operational and leadership structures in your business.

4. The registered agent will file these documents with the proper governmental agencies on your behalf! After a few days, the registered agent will notify you whether or not your incorporation was accepted or rejected by the state. They will guide you on how to proceed with maintaining your new incorporated status or on making adjustments to these documents to re-apply. 

   
   

What it looks like to incorporate through a commercial agent:

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The logistics of appointing yourself or another individual as a registered agent:

1. You can appoint any person over the age of 18 as a registered agent if it is allowed by (a) your state and (b) your specific business structure. 

2. This individual must have a physical address in the state in which you would conduct business, not a P.O. box. 

3. Each state has its own method of accepting formation documents.

   Here is Michigan's.

What it looks like to file formation documents directly with this state of Michigan:

I know what you’re thinking. If you can be your own registered agent in all 50 states, why would people even hire a commercial registered agent? 

1. If you live in one state and conduct business in another state, most states do not allow you to be your own registered agent.

2. You could miss a legal notice if you forget to check your mailbox. No one else would email or call you if your LLC were sued or if you missed the deadline to renew your organization's charity license!

3. Most importantly, though, once you incorporate, your Registered Agent information will be public record. Companies (and, honestly, just random people) can use public records to send you junk mail or post your address to additional places online. 

If you aren’t bothered by your personal address being public, save money and be your own registered agent!