Before forming a Limited Liability Company (LLC) in Alabama, a Registered Agent has to be named. Learn what a registered agent is, their duties, and the requirements to be one.
What is an Alabama Registered Agent?
An Alabama registered agent is an individual or company designated by your business entity in Alabama to receive important legal documents on behalf of the business. It is required by law.
What does an Alabama Registered Agent do?
Requirements of a valid registered agent are stated in the Alabama Statutes. An LLC must have and continuously maintain a registered agent and registered office in the state of Alabama. The agent must be available during normal business hours to accept service of process, notices, and demands related to the business entity, and deliver them to the appropriate parties. In essence, a registered agent serves as the public representative to deliver legal paperwork and other important notices. This position is necessary because it ensures that the correct people within an LLC are notified in the event of time-sensitive events, such as service of process for lawsuits, garnishment notices against employees, a notice of annual reports, or tax notifications.
Who can be a Registered Agent in Alabama?
Under Alabama law, a registered agent can be an individual resident of the state. The statute does not give a specific age. A registered agent may also be a registered Alabama domestic business entity or a foreign (out-of-state) business entity authorized to do business in Alabama. An entity cannot designate itself as its own registered agent.
Can I be my own Registered Agent in Alabama?
You can be your own agent, as long as you are a resident of Alabama and are fully available during all business hours.
Should you be your own Alabama Registered Agent?
Short answer? It’s not a good idea.
Provided you live in Alabama, you can legally be your own registered agent. However, there are many reasons to consider hiring a service to act as a registered agent.
Being your own registered agent ties you to your office during normal business hours, making it difficult to visit clients, go on vacation, or even have a sick day. It also means that, if someone serves notice of a lawsuit to you, it could happen at your office in front of clients. Using a registered agent service can prevent this embarrassment and ensure that you’re always in compliance by having a registered agent and registered office available to accept important legal and state correspondence.
How is an Alabama Registered Agent appointed?
A registered agent is initially appointed when forming the LLC and is named in its Certificate of Formation. The entity must name one before the Certificate of Formation is accepted by the Secretary of State.