If you’ve been researching how to form an LLC or a corporation, you must’ve come across the term “registered agent”. When you’re in the process of creating a new business and your business has to be registered with the state, hiring a registered agent is one of the requirements. Like with any other step of forming a business, this service comes at a cost. If you’ve ever wondered: “How much does a registered agent cost?”, you’ve come to the right place.
- Free For The First Year
- $119 / Annually After That
- Never Any Hidden Fees or Contracts
- Loved by 800,000+ Entrepreneurs
- Available in All 50 States
- Rated 4.7 out of 5 On Trustpilot
- $199 / Year
- Only Takes 5 to 10 Minutes To Set-up
- 100% Accuracy Guarantee
- Expert Customer Support
- Free First Year If You Use Their $39 formation package
- $125 Per Year After
- Available in all 50 states
- Free mail forwarding
- Locally-Scanned Documents
Our article will explore all the costs associated with registered agent services and some of the recurring fees you have to bear in mind. In addition, we have included our top recommendations for registered agent services if you decide that hiring one would benefit your business. At the end of our article, you’ll also find a detailed FAQ section that delves deeper into some common dilemmas entrepreneurs have at the start of their journey.
For starters, let’s see what a registered agent is and what their role entails.
What Is a Registered Agent?
A registered agent is a person or a business whose job is to receive and process official papers, such as legal notices and government correspondence, on behalf of your business.
It’s important to note that, for most business entities, an owner or a member can have the role of their registered agent, as well as a lawyer or a family member.
Who Needs a Registered Agent?
Owners of LLCs, corporations, limited partnerships, and limited liability partnerships need a registered agent who can represent them in the state in which their business is located.
Benefits of Hiring a Registered Agent
If your business doesn’t require a registered agent but you’re wondering whether hiring one would be of help, here are some benefits you can expect if you decide to go through with it.
Saves You Time
Time is an invaluable asset when it comes to businesses. Hiring a registered agent service can save you a lot of time – they will take care of collecting all your important documents, so you won’t have to be available at all times. Many entrepreneurs don’t have conventional business hours, so hiring a professional service can lift the burden of being available during all business hours.
Legal Advice
Another benefit registered agent services boast is giving you legal advice and guidance. If you’re unsure about how to proceed after receiving a document or you’re unsure about the implications of a legal document, you can always turn to the registered service for some advice.
Peace of Mind While You’re Away
If you’re someone who frequently travels for business and you aren’t always available to collect documents, hiring this service will give you some much-needed peace of mind while you’re away, knowing that your business remains in good hands.
Privacy
Another important benefit you receive by appointing a registered agent service is having more privacy. If you act as your own registered agent, you have to put your address on the public record. If you don’t like the thought of your home address being exposed, then you should consider hiring an agent.
Your Company Does Business Across Multiple States
Last but not least, hiring a registered agent service is a great idea for those who own businesses in several states. One registered agent service can take care of all the important legal documents regardless of where your business is located.
Now that we defined the roles of registered agents and gone over some of the benefits you can expect from this service, let’s get to the gist of our article and answer the “How much does a registered agent cost?” question.
How Much Does a Registered Agent Cost?
- Free For The First Year
- $119 / Annually After That
- Never Any Hidden Fees or Contracts
- Loved by 800,000+ Entrepreneurs
- Available in All 50 States
- Rated 4.7 out of 5 On Trustpilot
- $199 / Year
- Only Takes 5 to 10 Minutes To Set-up
- 100% Accuracy Guarantee
- Expert Customer Support
- Free First Year If You Use Their $39 formation package
- $125 Per Year After
- Available in all 50 states
- Free mail forwarding
- Locally-Scanned Documents
The cost of registered agents varies from state to state. The average cost can be anywhere from $100 to $300. Other variables that come into play include the size of your company and the types of services the registered agent offers. Some business owners gladly pay several hundreds of dollars a year in exchange for the peace of mind they get knowing that their documents are well taken care of and that they’re not missing any important deadlines.
In addition, you also have to be aware of the fee for switching registered agents. If at any point you decide that you no longer like the service you’re getting from your registered agent, you can change services or appoint a new agent for $30.
What If I’m My Own Registered Agent?
As you might be aware by now, you can also choose to act as your own registered agent. If you decide that this is the path for you, there are some fees you should be aware of.
The majority of expenses will stem from the state filing your documents. With that said, even if it’s seemingly cheaper to act as your own registered agent, there are some things to take into account.
For instance, you will have to dedicate a lot of time to receiving and shifting through documents instead of investing it in your business, which can end up costing you money.
Additionally, if you’re unavailable at the time when you need to receive your documents, you might miss some important deadlines that are included in the documents. This could result in having to pay additional fees and fines, so bear that in mind.
Are Registered Agent Fees Tax-Deductible?
One common question business owners have is whether registered agent fees are tax-deductible.
The answer is – yes, registered agent fees are tax-deductible and they include the yearly fee of maintaining a registered agent service, as well as any additional fees, such as changing registered agents.
Some businesses don’t require registered agents. However, if you decide to hire one, even if it’s not mandatory, you can still write off those expenses when doing your taxes.
Individual Registered Agents vs. Hiring a Registered Agent Service
As we mentioned earlier, a member or an owner of your business can serve as your registered agent. There are some conditions they need to fulfil, such as being 18 years or older and having a physical address in the state in which you’re conducting your business where they can receive the documents.
However, hiring an individual whom you know comes with a set of disadvantages. For instance, the agent’s address will be on the public record, and if they’re using their home address, it could become a safety hazard.
On the other hand, you could also hire a registered agent service, which is a business dedicated to serving LLCs, corporations, and partnerships. They typically have a lot of experience, so you know you’ll be in safe hands.
The average cost of hiring this service is around $200. While it might not seem like a lot of money initially, the sum does add up, especially if you have businesses in more than one state. However, if your business does have the money to spare, it can be incredibly comforting knowing your important documents are taken care of at all times and that you receive them in due time.
Registered Agent Service Recommendations
If you decide that hiring a registered agent service is the right option for you, here are some of our top recommendations.
Northwest
Northwest is one of the most popular LLC registered agent services. Containing more than 700 employees and managing over 3 million businesses, Northwest are dedicated to providing high-quality service for everyone. They offer a lifetime guide service whenever you’re in need of legal guidance, as well as invaluable tips on starting and maintaining a business.
One of the most appealing aspects of Northwest is the amount of privacy you’ll receive – they have a separate business address, they guarantee never to sell your data, and they offer free mail forwarding. In addition, they provide pre-filled state forms and annual report reminders, which can be incredibly useful.
The service of Northwest costs $125. The best part about it is – the price is the same every year.
Zen Business
Another registered agent service we swear by is Zen Business.
Their role is to manage all your correspondence with the Secretary of State and your tax documents. You can view, download, and print your documents at any point. They will scan the documents on your behalf and upload them, keep track of all the legal notices that are addressed to your business, and email you whenever you receive an important document that should be looked at immediately.
On top of providing the usual services as a registered agent, they also offer help with the service of process and mail correspondence.
If at any point you decide to cancel your account, there will be no fees. All you have to do is email them or call their number and your account will be cancelled in no time.
The services provided by Zen Business are slightly cheaper than those of Northwest – you only have to pay $99 a year for the services mentioned above. If you’re new to starting an LLC or a company, check out some of the other services they offer that can be extremely helpful when starting a new business.
Harbour Compliance
The next registered agent service we will recommend is Harbour Compliance. With ten years of experience, this service allows you to save a lot of time by managing and receiving documents on your behalf. Not only that, but they offer pre-filled state forms and extremely user-friendly software.
There are plenty of complimentary features to be enjoyed, such as their annual report notices and customizable notifications. We also love their amazing customer support – if at any point you have a question or you’re stuck on a problem, you can rest assured knowing they will help you in no time. They operate in all 50 states, so you won’t have to worry about the state where your business is located not making it on the list.
The pricing for Harbour Compliance is $99 a year. In addition, you can save money by purchasing the service for multiple years – they offer a volume discount of 5-10% if you decide to buy the service for two or more years. With that said, keep in mind that there are no refunds or free trial periods, so make sure you’re certain you want to buy the service prior to paying.
Due to their bulk buying options and the number of services they provide, Harbour Compliance is extremely popular with larger businesses.
Rocket Lawyer
Another amazing registered agent service we recommend is Rocket Lawyer. It’s one of the most established services in the US.
One of the main advantages of hiring this service is that it’ll help keep your documents organized online, scan them for free, and email them to you in due time. You will never have to worry about missing any documents or paying extortionate fees due to missed deadlines. Their experts have been working with businesses for years on end, so you know you’re in reliable hands.
Their services are also available in all 50 states, which is always a plus. Their pricing is $149 a year for non-members and $111 a year for members. Their prices are slightly higher than the other services we mentioned in our guide, but you will get a myriad of additional features that aren’t available elsewhere if you decide to opt for a membership. However, if you don’t think you’ll get a lot of use out of those features, you might be better off choosing another registered agent service.
What Happens if I Don’t Have a Registered Agent?
A registered agent is only optional for smaller business structures, but for LLCs, corporations, and partnerships – it’s a must. The penalty for not having one is that you won’t be able to register your business in the first place. You have to put the name of your registered agent in the filing forms when you’re forming your business, and if that field is empty, the state won’t recognize your business and give you the green light to start operating it.
If you fail to replace a registered agent in due time, you will have to pay fees.
FAQs
What Does a Registered Agent Do?
The role of a registered agent is to receive and handle legal documents on your behalf.
Do I Need a Registered Agent?
Registered agents are only a requirement for LLCs, corporations, and partnerships. If you have a smaller business, you might not be required to appoint a registered agent. However, you can still hire a registered agent service or appoint someone from your company or family to act as your registered agent if you want to experience some of the benefits that come with this service.
What Is Required to Become a Registered Agent?
Interested in becoming a registered agent? Here is what will be required from you.
First off, you have to meet certain requirements with the state, such as being a current resident in the state and having an actual physical address in the state. The other requirements vary from state to state, so it’s best to check with your state directly to ensure that you meet all the criteria.
Should I Pay for a Registered Agent?
If you want to enjoy certain benefits, such as having more privacy, peace of mind, and time, then definitely consider hiring a registered agent.
Best Registered Agents By States
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington DC
- West Virginia
- Wisconsin
- Wyoming