You may have heard that the Texas Business Organizations Code (“BOC”) requires you to have a registered agent for your LLC. But what is a registered agent, and what purpose do they serve?
What is a Registered Agent?
A registered agent serves as a go-between for the business and the state. As much as the LLC is a legal entity with the capacity to sue and get sued, it cannot receive and process correspondence as a person would. Thus, you must thus elect a person or firm to serve this purpose.
Anyone can serve as a registered agent in Texas if they can meet the following requirements:
- They should be at least 18 years old and legally able to enter contracts. If you plan to hire a firm, it should have its incorporation in Texas, giving it the legal capacity to act on your behalf,
- They should have a physical address in Texas to receive official documents on behalf of the business. This address is not the same as a postal address, as someone must be present to receive and sign off on the documents. Else, the delivery will not take place,
- They should be available during regular office hours. These timelines dictate when government officials deliver official records. And not having someone at the stated address during these hours gets in the way of rendering these official services, and
- They should be residents of Texas.
You can be the LLC’s registered agent or delegate this role to a friend, attorney, or professional registered agent. Please note that the agent’s address is available on public records. Thus, if you choose to represent yourself, anyone who wants to contact you will have access to this information.
The Legal Duties of a Registered Agent
Qualifying to be a registered agent is easy. However, following through with the applicable duties can be challenging. So, what does a registered agent do for an LLC?
a. They receive tax notices
All LLCs and corporations must keep up with their tax obligations to avoid incurring penalties or getting dissolved. The state periodically reminds you of the filing dates. It may also send you orders regarding your tax status and any outstanding payments. The sooner you address these obligations, the easier it is to avoid getting into legal and financial woes.
b. They process compliance notices
Filing for business formation is the beginning of your long-standing relationship with the state. You will need to file reports to inform the state of your business status. And the state will often send you reminders regarding these compliance reports. Getting them on time and addressing them helps you maintain your compliance status. Please note that the loss of this status is detrimental to the operation of your business.
c. They accept service of process
Your business can sue and get sued as it is a legal entity. If someone has legal grievances against the business, they will take up the matter with the court. And your business will get served with legal paperwork informing it of the pending case. Getting this information on time will help you research ways to handle the case and put your best foot forward. But if you do not get this information in time for the hearing, you could lose a case without the chance to defend yourself.
A good registered agent establishes your point of contact with the state, ensuring you never miss out on any important official correspondence. Ensure you choose and maintain a reputable person or firm to handle this crucial role.