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Having a registered agent is mandatory when forming a Limited Liability Company (LLC) in Colorado. Below we’ll explain what the registered agent is, their job duties, and the requirements to be one.
What is a Colorado Registered Agent?
A registered agent is an individual or company designated by the business entity to receive important legal documents on behalf of the company.
What does a Colorado Registered Agent do?
The requirements for a registered agent are found in Colorado Revised Statutes, section 7-90-701. These say LLCs will have and continuously maintain a registered agent and office within the state.
This position is needed because it ensures that the right people within an LLC are notified in the event of time-sensitive events. These could include service of process for lawsuits, garnishment notices against employees, a notice of annual reports, or tax notifies.
Who can be a Registered Agent in Colorado?
The requirements to be a registered agent in Colorado include:
- If the agent is an individual, they must be 18 years or older and have a primary residence or usual place of business is in Colorado.
- If the agent is a domestic (in-state) business entity, it must have a usual place of business in Colorado.
- If the agent is a foreign (out-of-state) business entity, it must be authorized to do business in Colorado.
- Unlike other states, Colorado allows a properly registered business entity with a usual place of business in the state to serve as its own registered agent.
- The agent must have a physical address (often referred to as a registered office or principal office) in the state of Colorado. This can be the actual address of the business, the address of an owner, friend, family member, accountant, or attorney, or the address of a registered agent service, as long as it is in the state. The office of the registered agent does not have to be the same as the business address, but PO Boxes and mailbox services are not allowed.
- Being available to receive Service of Process on behalf of the business during normal business hours. Service of process refers to the delivery of legal documents, often a summons, subpoena, or lawsuit filed against a business entity.
Can I be my own Registered Agent in Colorado?
You can be your own agent, as long as you are a resident of the state, over 18 years old, and are generally available during business hours.
Should you be your own Colorado Registered Agent?
Provided you live in Colorado, you can legally be your own registered agent. However, there are good reasons to consider hiring a service to act as a registered agent, such as:
- Availability – A registered agent needs to always be available at the principal address during normal business hours. This ties you to the office all day.
- Annual Notices – Some registered agent services provide reminders on the state requirements, such as annual report filings. Remembering to file an annual report can be easily overlooked or forgotten.
- Penalties and Fees – By not continuously maintaining a current registered agent, the LLC may be responsible for penalties and fees, in addition to the potential for administrative dissolution (having the state dissolve your LLC).
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