In Texas, although you don’t need a general business license, you must designate a registered agent to receive important legal documents and official notices on behalf of your business. This essential role serves as a bridge between your business and the state, handling everything from service of process to tax notifications.
We at The Law Dictionary have decoded complex government regulations into comprehensive insights to aid you in understanding what is legally necessary for your business. Let’s explore the best registered agent services in Texas to keep your company compliant and running smoothly.
Best Registered Agent Services
Here are our top registered agent service picks in 2024:
- Most Comprehensive: ZenBusiness
- Best Customer Support: Northwest Registered Agent
- Best Legal Support: LegalZoom
- Most Cost Effective: Bizee (Powered by Incfile)
- Fast Turnaround: Swyft Filings
What Is a Registered Agent in Texas?
For Texas business owners, there are a few options available for appointing a registered agent. You can select an individual or a business entity operating in the state. The agent is responsible for receiving important legal and tax documents on your behalf which include:
- Service of process (for lawsuits or other legal matters)
- Tax notifications
- Any other official correspondence from the state
The registered agent must have a physical address in Texas to receive these documents during regular business hours.
Remember, the role of a registered agent is vital for maintaining your business’s good standing with the state. They act as your official point of contact, ensuring that you never miss important deadlines or legal notices. This is particularly important in Texas, since missing deadlines or failing to respond to legal documents promptly can result in serious consequences for your business.
How Much Does a Registered Agent Cost in Texas?
When it comes to overall investment, the cost of a registered agent in Texas varies depending on whether you serve as your own agent or hire a professional service, your industry, and your location. If you decide to be your own registered agent, there’s no additional cost beyond your normal business expenses. However, this option comes with responsibilities and potential privacy concerns.
The cost of professional services in Texas typically ranges from $50 to $300 per year. Some providers, like Bizee, offer the first year free when you form your LLC through them. Others, like Northwest Registered Agent, charge more but provide additional services and personalized attention. It’s important to consider not just the price, but also the value of the services provided. Remember, the cheapest option isn’t always the best for your business needs.
Who Can Be a Registered Agent in Texas?
In Texas, the requirements for who can serve as a registered agent are relatively straightforward. The registered agent must be:
- A resident of Texas who is at least 18 years old
- A business entity authorized to do business in Texas
It’s important to note that the registered agent must also maintain a physical street address in Texas — not just a P.O. box. — because they need to be available during regular business hours to receive legal documents in person if necessary.
What Does a Registered Agent Do in Texas?
A registered agent in Texas serves as the official point of contact between your business and the state. Their primary responsibilities include:
- Receiving service of process in case your business is sued
- Accepting official mail and documents from the Texas Secretary of State
- Promptly forwarding you these documents
- Helping to maintain your business’s good standing by reminding you of important filing deadlines
By fulfilling these duties, your registered agent helps keep your business compliant with state regulations and protects you from missing critical legal or tax-related communications.
How Do You Designate a Registered Agent in Texas?
Designating a registered agent is a straightforward process that’s typically done when you first form your Texas business. Here’s how to do it:
- Choose your registered agent: This can be yourself, another individual, or a professional service.
- Obtain consent: Your chosen agent must agree to serve in this role. If you’re using a professional service, they’ll provide this consent as part of their service agreement.
- Include the agent’s information in your formation documents: When you file your Certificate of Formation (for LLCs) or Certificate of Incorporation (for corporations), you’ll need to provide your registered agent’s name and address.
- File the documents: Submit your formation documents to the Texas Secretary of State, either online or by mail, along with the required filing fee of $300.
If you need to change your registered agent later, you can do so by filing a Change of Registered Agent form with the Texas Secretary of State and paying a small fee.
How Do I Choose a Registered Agent in Texas?
Selecting the right registered agent is crucial for any business in Texas. This decision directly affects your company’s compliance, so it’s essential to take your business needs and budget into account. If you’re comfortable handling legal documents and are readily available during business hours, serving as your own agent might work. However, many business owners find that the convenience and privacy of a professional service outweigh the cost.
When evaluating professional LLC services, look at factors beyond just price. Consider their reputation, the range of services they offer, and their level of customer support. Read reviews from other Texas business owners to get a sense of their reliability. Also, think about your future business plans. If you’re likely to expand to other states, a national provider might be a good choice. Remember, the goal is to find a registered agent that will reliably handle this important role, giving you the flexibility to focus on operating and scaling your business.
The Bottom Line
Choosing the right registered agent is a key decision for your Texas business. Whether you opt for a budget-friendly option like Bizee, a premium service like Northwest Registered Agent, or decide to handle it yourself, the most important thing is that your chosen agent fulfills this critical role reliably and efficiently.
At The Law Dictionary, we believe that understanding your legal obligations is the first step to business success. By selecting a registered agent that fits your needs and budget, you’re setting your Texas business up for smooth sailing when it comes to state compliance. Remember, the right registered agent isn’t just a legal requirement—it’s a valuable partner in your business journey.