What Is a Registered Agent Fee?

Nearly all states require a corporation or limited liability corporation to have a registered agent. Registered agents are required to be available during certain business hours. It is their duty to receive legal or governmental filings that have liability effects on the business entity.The registered agent must then forward the information. A registered agent does not have many duties, but the one they have must be met expeditiously. It is the nature of the work and the fee earned for these efforts that this article discusses.

Requirements

Registered agents must accept service of process. Responsibilities must be completed in a timely manner and must be available during business hours. For this reason, you may want to consider hiring a professional registered agent regardless of any state requirement. Registered agents must receive tax invoices generated from state and local municipalities, as well as formal filings of legal actions against the corporation. Fees are prepaid on an annual basis.

Fees

Registered agents can charge whatever fee they wish. Generally, these fees range between $50 and $200 dollars. The higher range of fees are usually assessed by attorneys in private practice. The lower fees are usually found by online corporations that will also register your company or limited liability corporation. The fee for the registered agent is separate from the registration fee for the business entity. The registered agent fee is an annual fee.

Relationship Between the Company and the Registered Agent

The corporate secretary of the company is responsible for receiving communication from the registered agent. The corporate secretary will be the person of record for the registered agent. It is up to the corporate secretary to ascertain to the state that there is always a registered agent. This allows the corporation or limited liability corporation to continue as an entity in good standing. It is the corporate secretary who will receive the annual bill for services.

Advantages of a Third-Party Investor

There are many reasons to consider moving the burden of a registered agent to another party. Among those reasons are: the registered agent is a matter of public record; the officers of the corporation may travel freely outside the state without missing legal notifications; and money can be saved by receiving and responding to legal and tax notices before penalty features are reached, avoiding any possible embarrassment and rumors among employees if legal service is performed at the place of work rather than that of the registered trustee. Once the annual fee is charged and paid, there should be no other fees incurred.

Finding a Registered Agent

The American Bar Association has a program called the Model Registered Agents Act that identifies possible registered agents in every state. In some states, it is possible to identify the secretary of state as a registered agent for the state, as well. Fees are determined by the secretary of state. Generally, states do not impose registered agent fee schedules or impose minimum or maximum charges.

Resources

• General Information on Registered Agent