When you form a limited liability company in Alabama, you are required to designate a registered agent for your LLC. This is the party that will serve as your business contact for any official correspondence from the state of Alabama and from other parties.
If you are an Alabama resident, you may serve as your own registered agent. However, there are good reasons why many business owners choose to hire a professional registered agent service. In this post we’ll cover what is a registered agent in Alabama, why it is needed, and how a registered agent service can help you.
Your Alabama registered agent is your point of contact for Alabama state business and other critical documents. They will receive any correspondence from the state as well as legal notices. These can include:
The registered agent must inform the business about any of this correspondence they receive. The registered agent is a critical component of your enterprise, which is why you must be prudent in naimg one.
There are specific requirements for a registered agent in Alabama:
As you can see, consistent availability during all business hours is a critical requirement for a registered agent. A person who travels or is otherwise away during business hours will not be able to adequately fulfill a registered agent’s responsibilities.
You appoint a registered agent when you file the Certificate of Formation for your LLC. There is not a separate document for registered agent appointment. If you are expanding an existing LLC into Alabama, you will appoint your registered agent in your Foreign Qualifications filing.
You need to obtain the party’s permission before appointing them as your registered agent. If you choose to switch to a different registered agent, you may change the designation at any time.
To form your LLC and name your registered agent, you can download and submit a typed Certificate of Formation via mail. Email is not accepted. The form contains fields for the registered agent’s name and mailing address. You must send two copies of the certificate and a self-addressed stamped envelope to Secretary of State, Business Services, P.O. Box 5616, Montgomery, Alabama 36103. You may also file your certificate online.
For foreign LLCs (those from another state), you can download and submit the Application for Registration in the same way and to the same address as the Certificate of Formation, or you can also file online.
You may change your Alabama registered agent any time you feel like it. There is no limit to how often you can do so, although you must pay each time you submit a change. There is no online facility for doing this in Alabama; you will have to download and complete the Change of Registered Agent form. The information on the form must be typed, and you then send it to Secretary of State, Business Services, P.O. Box 5616, Montgomery, Alabama 36103. You must include two copies and a self-addressed stamped envelope. You must remit a processing fee of $100. You can also email the completed PDF to [email protected].
Yes, you can, as long as you meet the requirements: at least 18 years of age, a resident of the state, and a physical mailing address within the state. You can use any Alabama address, either your home address or your business address. By doing this, you save the cost of engaging a third-party registered agent. Some business owners choose this option to protect their privacy and keep their documents out of the hands of a third party. However, it has its disadvantages.
The biggest drawback is that you have to always be available during business hours. For a small business owner, this can be problematic. If you travel, or even if you occasionally need to take a day off, you won’t be able to fulfill the duties of a registered agent. You won’t be available to receive service of process notifications. You may miss receiving tax forms or other critical documents. You will generally be responsible for the information contained in the documents, regardless of whether you actually received them.
While acting as your own registered agent is permissible, it can be inconvenient, and it can put your business at risk. Fortunately, there a quite a few companies that will act as your registered agent for a fee. These fees are quite reasonable considering the difficulty and exposure that acting as your own agent entails. Here are some reasons that so many small business owners find it worthwhile to use an Alabama registered agent service.
A registered agent may be called on to receive documentation only occasionally, but every time it happens, it’s critical that your business knows about it. Even if you’re away from your business only for a short period, some vital information could arrive during that time. A registered agent service never takes a business day off; there is always someone at the address to receive correspondence. You don’t have to worry whether you’ve missed a vital message. Your registered agent service will let you know any time something comes in that requires your attention.
A registered agent’s name and address is a matter of public record. It’s available on the Alabama Secretary of State website for anyone who bothers to look for it. You may not care whether a storefront or factory address is known to the whole world, but if you run a business from your home, you might prefer to keep the address information to yourself. When you hire a service, the registered agent’s address is on anything that comes from the state. If there is a process service or a lawsuit, the other party will go to the registered agent’s location rather than to your home or business.
Designating a registered agent that is consistently available isn’t optional under Alabama law. It’s a requirement. Also, a registered agent service can help you fulfill the duties that your business has under state law. They can prompt you whenever there is a form to be submitted or a deadline to be met. The law can be detailed and even confusing when it comes to meeting the requirements for an LLC, and your registered agent can handle time-sensitive and time-intensive tasks for you. Many of them will act as a repository for backups of Articles of Organization and other vital documents.
When you act as your own registered agent, you are constrained. You need to be at the designated address on a consistent basis. With a registered agent service, you can travel, take time off, or work odd hours, knowing that your service is always on duty. Furthermore, if your LLC does business in more than one state, you can engage a service that operates in multiple states. Documentation will be delivered to the appropriate state registered agent address, and you will be informed no matter where you are.
There can be a good deal of paperwork involved in the process of acting as a registered agent. When you have a service, this is handled for you. A professional registered agent service is familiar with the requirements in Alabama, and can handle detailed work that would require you not only to expend some time but also to develop expertise. A service frees you up to concentrate on the aspects of your business where your time and effort make a difference.
Acting as your own registered agent is both legal and possible, but many LLC owners will not find it practical. For a reasonable annual fee, you can meet the registered agent requirement and be confident that you’re not missing any critical information that you as a business owner need to have. If you are just starting your LLC, or if you have been acting as your own registered agent, it’s time to look into the advantages that a registered agent service can offer for an Alabama business.
Most Alabama services charge from $50 to $300 per year. Costs tend to vary based on what is provided beyond the basic registered agent service.
Some registered agent service providers offer additional benefits such as LLC formation services, document storage, mail forwarding for other documents, and compliance tracking. Many services come from companies that provide a full gamut of business services for additional fees.
The registered agent must be identified in the Certificate of Formation for a domestic LLC or the Foreign Qualifications filing for an out-of-state company. If you plan to use a registered agent service, you will need to make the arrangement before you file these documents.
The Alabama Secretary of State maintains a Registered Agent List. It’s important to note that this list is informational only, and that the Secretary of State does not make any recommendations concerning these agents.
This portion of our website is for informational or educational purposes only. Tailor Brands is not a law firm, and the information on this website does not constitute legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos on this page.
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