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Can A Llc Be Its Own Registered Agent

Choosing a Registered Agent for your Texas LLC

Before filing your Certificate of Formation (Form 205) with the Secretarial assistant of State, you need to cull a Registered Amanuensis for your Texas LLC.

(Nosotros'll discuss filing your Document of Formation in the next lesson.)

A Texas Registered Amanuensis is a person or company who agrees to have legal mail on behalf of your Texas LLC in case your concern gets sued. This "legal post" is known as Service of Process for your LLC.

The Texas Secretary of State will also apply your Registered Amanuensis's address equally your LLC's point of contact for official notices sent to your concern.

As per Section five.201 of the Business Organizations Code, your LLC'south Registered Agent must take a concrete street address located in Texas.

A Texas Registered Amanuensis address (called the Registered Role) can't exist:

  • a PO Box address
  • a mailbox rental service or phone answering service

Your Texas Registered Amanuensis should also exist available (generally speaking) during normal business concern hours (9am – 5pm) in case Service of Process arrives.

Service of Procedure includes the delivery of legal documents such as:

  • writ
  • complaint
  • summons
  • subpoena

Special offer: If you hire Northwest to course your LLC ($39 + state fee), they'll include their Registered Agent service free for the 1st year.

Why does my Texas LLC need a Registered Amanuensis?

Your Texas LLC'due south Registered Agent is a key component to how the court and legal systems work. By requiring all Texas LLCs to keep a Registered Agent on file with the land, the delivery of legal mail and court documents can exist properly tracked.

This is similar to how 'certified mail service return receipt' works, simply in the legal world, this is how process servers (people delivering legal documents) create a record that something was delivered.

Can I be my own Registered Agent in Texas?

Yes, yous tin can be your Texas LLC's Registered Agent, every bit long as you have a street address located in the state.

You lot really have three options when forming an LLC in Texas:

  1. You tin can be your LLC'due south Registered Amanuensis in Texas (Are there risks?)
  2. A friend or family fellow member tin be your LLC'southward Registered Agent
  3. Yous tin can hire a Texas Registered Agent Service, also known as a Texas Commercial Registered Amanuensis

Registered Agent Information is Public Tape in Texas

While y'all do have the option to exist your Texas LLC's Registered Agent (or use a friend or family unit member), y'all may not want to have your accost listed in public records.

The information you enter in your Certificate of Germination becomes public record with the Texas Secretarial assistant of State.

Not only is this data searchable by the public, but other websites download the land's records and republish them on their website. And so things begin to multiply equally other "public record websites" take that same information and list it on their website once again (and the process repeats itself).

Pretty before long your address is listed on various websites and people can hands find it by doing a Google search.

There is a solution, though, if you'd like to keep your accost off public records. We'll discuss this below.

What's the best Registered Agent option to choose?

Pick #ane (Yous):

If you take a street address located in Texas, are available during business organization hours, and don't mind your address being on public tape, then you can exist your LLC's Registered Amanuensis.

Pick #two (Friend or Family):

If you don't accept a street address located in Texas, simply yous have a friend or family unit fellow member who does, they can be your LLC's Registered Agent. They'll need to be bachelor during business organization hours and they shouldn't mind having their accost being listed on public record.

Option #3 (Registered Agent Service):

If yous don't have a street address in Texas (or you'd rather not utilise it for this purpose), you can rent a Registered Agent Service in Texas.

Texas Registered Agent Service

Note: The terms "Registered Agent Service" and "Commercial Registered Amanuensis" mean the same matter. We will use them interchangeably.

A Texas Registered Agent Service specializes in receiving Service of Procedure (legal mail) on behalf of your LLC.

Most Registered Agent Services in Texas cost betwixt $100 and $300 per year.

The Texas Registered Agent Company nosotros recommend is Northwest Registered Amanuensis ($125 per year).

Why we recommend Northwest Registered Amanuensis

Northwest Registered Agent is our personal recommendation (and the service nosotros use ourselves) because they've been in business for over 20 years, have great customer service, and they allow you use their address in your entire LLC filing in order to keep your address off public records.

Keeping your address off public records with Northwest

Many filers in Texas start businesses from their abode. For this reason, it's of import to know that all addresses that are listed in your LLC's Certificate of Formation (Registered Agent address, Governing Person's accost, and Organizer's address) get listed on public records.

If you were thinking of using your habitation address, merely would rather go on it off public records, you tin hire a Registered Agent that volition allow you to utilise their address throughout your Document of Formation. Northwest Registered Amanuensis offers this unique service at no additional cost. They offering Registered Agent services for $125 per year and they'll permit you use their address throughout your Certificate of Formation.

Whatever mail service that is sent to your LLC will exist scanned by them and uploaded into your online business relationship.

Special discounted pricing for LLC University® readers

Northwest unremarkably charges $100 + state fees to form an LLC. However, nosotros've negotiated a discounted charge per unit (threescore% off) for LLC Academy® readers.

Risks of beingness your own Registered Agent in Texas

As mentioned above, y'all can be your own Registered Agent in Texas.

As well the address privacy we mentioned, there are other risks to being your ain Registered Agent.

These risks are non extremely probable to occur, but if they do, you lot could lose your liability protection and the Texas Secretary of Country has the power to administratively shut down your Texas LLC if you lot're not in compliance with state laws.

This can happen if you lot don't "continuously maintain" (go along) a Registered Agent on file, or if the Secretary of State tin't reach your LLC'due south Registered Agent.

Additionally, if a process server (the person who delivers court documents and notices of lawsuits) can't reach your Texas Registered Agent (or is unsuccessful in serving your LLC through the Secretarial assistant of State), a court case can continue in your absence and you might not even know virtually it. Or worse, the court could enter a default judgment against your LLC if you aren't there to defend yourself.

A few reasons a process server might not be able to accomplish your Texas LLC's Registered Agent:

  • you, your friend, or family fellow member are not there during concern hours
  • you/they are on vacation or out of town
  • you lot/they moved and you forgot to file a Alter of Registered Agent with the Texas Secretarial assistant of Country

Consent to Serve equally Registered Agent (Course 401-A)

Every bit per Section 5.2011 of the Business Organizations Lawmaking, the Registered Agent for your Texas LLC must agree to serve as the LLC Registered Agent by giving their consent in writing.

This can exist done on Form 401-A.

While you lot tin can include Form 401-A with your LLC Certificate of Formation (the form that creates your LLC), this is not required.

Under the land'due south rules, as long as you accept a copy of Form 401-A on file with your LLC records, your LLC is in compliance.

Having said that, many filers do choose to submit their Consent to Serve as Registered Agent to the Secretarial assistant of Country so it's on file for "actress proof." The Texas Secretary of State will file and index the form with your LLC's filing history.

If you expect on page 3 of the class, there are two sections where someone can sign.

If you or someone you know volition be your LLC's Registered Agent, you/they will enter your name and sign on the acme half of the class.

If you decided to rent a Commercial Registered Agent, they will provide y'all this form (signed), and they will accept completed the lesser half.

It'southward also important to note that as per Sections iv.007 and four.008, appointing a Registered Agent without their consent is a Class A misdemeanor. Class A misdemeanors can be punishable with up to a $iv,000 fine, up to ane year in jail, or both. Point being, don't appoint someone yous know every bit your Registered Agent unless they know what they're doing and they agree to be your Registered Agent. The duties of a Texas Registered Agent are spelled out in Section 5.206.

Your LLC tin't be its own Registered Agent

In that location are a few states (very few) which allow an LLC to be its ain Registered Agent.

Texas doesn't allow an LLC to be its own Registered Amanuensis.

While an LLC can appoint another visitor (which tin can be an LLC, Corporation, or whatever entity), the LLC tin can't serve as its own agent.

Your LLC always needs to have a Registered Agent

If you or someone y'all know will be your LLC's Registered Amanuensis, and they move, you'll need to file Form 401 to update/change your records with the Secretary of State. Alternatively, y'all can update this information via SOSDirect.

Please see " Can I modify my Registered Agent " below.

If the Texas Secretary of State receives observe that your LLC no longer has a Registered Amanuensis, they may stop your LLC.

If I'one thousand the Registered Agent, am I liable for the LLC?

No. As per Section 5.208, simply because a person is the Registered Agent for an LLC, that in and of itself doesn't mean they will be held responsible for the LLC'due south debts, liabilities, or obligations.

Can I change my Registered Amanuensis subsequently?

Yes, you can alter your Registered Agent at whatever time (and every bit many times as you need).

You can alter your LLC'south Registered Agent at whatsoever time by:

  1. Filing Grade 401 with the Secretary of State
  2. Updating your Registered Agent via SOSDirect

The fee to modify/update a Registered Agent in Texas is $xv.

Next Step: Texas Certificate of Formation

In one case you determine who will serve as your Texas LLC's Registered Agent, you can so go along to the next lesson: Texas LLC Document of Formation.

If y'all plan on hiring a Texas Registered Agent Service (a Commercial Registered Agent), delight do so before going to the adjacent stride. You lot'll need their address for your Document of Formation.

Matt Horwitz

Founder & Educator, LLC University®

Matt Horwitz has been the leading practiced on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed uncomplicated and actionable instructions to first an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the United states of america Bedchamber of Commerce, and was featured by CNBC and InventRight.

Matt holds a Available's Degree in concern from Drexel University with a concentration in business organization police force. He performs extensive research and analysis to convert land laws into simple instructions anyone tin can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC Academy.

Can A Llc Be Its Own Registered Agent,

Source: https://www.llcuniversity.com/texas-llc/registered-agent/

Posted by: mccullochwhatiall.blogspot.com

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