A registered agent is required per the Texas Business Organizations Code (“BOC”). You must elect one when forming your LLC; otherwise, your application will not be considered. You must also maintain a registered agent during your business’ lifetime to remain compliant. As such, the importance of a registered agent cannot be undermined. But who can stand in as your registered agent?
Registered Agent Requirements
Texas requires that you elect an agent who meets the following requirements:
- The agent must be available to accept service of process during official office hours. Please note that if the agent is not available during these hours, you can miss out on official communication that can land you the short end of the legal stick,
- The agent must be a resident of Texas,
- The agent must be at least 18 years old. If using a company, the firm should have Texas incorporation,
- The agent must have a physical address in Texas to receive legal correspondence. Please note that this does not equal a P.O. Box as the latter does not allow government officials to serve you with legal paperwork.
So, anyone or any firm that meets these requirements can step up to this role. Their address will appear on your public records; whenever anyone wants to send you documents, they will forward them to that address.
Registered Agent Options: Who Can You Hire?
The registered agent requirements are quite flexible, allowing you to hire just about anyone who checks each box. So, who can you hire for this role?
i. Yourself
Texas laws allow you to stand in as your registered agent. In this case, your business address will appear on public records, where you can receive service of process and other legal documents.
ii. Friends/ Family
You can also delegate the role to a friend or family member. They should meet the registered agent requirements to be fit for the role. Sometimes, LLC owners hire their lawyers to take up this responsibility.
iii. A Professional Registered Agent
The last and most preferred option is to hire a professional registered agent. Such an agent focuses on receiving tax, legal, and official documents and forwarding them to you. This way, you can rest assured that you meet your compliance obligations and don’t run the risk of penalties or dissolution.
How to Choose a Registered Agent
Given that you have many viable options, how should you choose a good registered agent? It’s best to consider the following determinants:
- Can you handle mail duties? Adding mail responsibilities can be too much for you if you have a lot to juggle. In this case, you can delegate the compliance role to someone or a firm you can trust.
- Do you need to keep your address private? People who work from home have to list their addresses in public records. That is not ideal, as strangers can pop in at any time to serve you with papers. Instead, you can delegate the role and have the paperwork handled by a professional.
- Do you want to keep your business legal matters confidential? Being served with papers in front of your employees or clients is not ideal. The easiest way to avoid this likely occurrence is to delegate the compliance work to someone you can trust.
- Do you work outside the office? A registered agent can step in to fill the gap.
Professional registered agents are often the better choice compared to family and friends. You can hold them accountable if any issues arise and can trust they will handle the situation with the utmost professionalism.