Every state requires an LLC or corporation to designate a registered agent — a person or company authorized to receive legal documents, like a lawsuit or state correspondence, on the business's behalf. It's a small formation detail with real consequences if it's handled poorly.
What a registered agent actually does
The registered agent's main job is receiving service of process (formal legal notice of a lawsuit) and official state correspondence, then forwarding it to the business promptly — missing a lawsuit notice because it went to the wrong address can result in a default judgment.
Who can serve as one
Most states allow an owner or employee to serve as their own registered agent, as long as they have a physical address (not a P.O. box) in the state and are available during business hours — or a business can use a commercial registered agent service instead.
Why many businesses use a commercial service anyway
Using a commercial registered agent keeps the owner's personal address off public record, ensures consistent availability during business hours, and simplifies things for businesses registered in multiple states, each of which needs its own registered agent.
It has to be kept current
If a registered agent resigns or a business moves without updating its registered agent information, the state can eventually administratively dissolve the entity — keeping this detail current is a small but genuinely important piece of ongoing compliance.