If you’re forming a limited liability company or corporation in the state of Connecticut, you’ll need to designate a registered agent.
A registered agent is the individual or business entity that receives legal documents from the state, and then forwards them to your business address. But why is this a requirement, and who should you designate as your registered agent in Connecticut?
In this guide, we will break down all the details you need to know about Connecticut registered agents.
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What is a Connecticut Registered Agent?
One of the most common questions we receive from entrepreneurs in Connecticut is why a registered agent is required to form an LLC or corporation. While it might seem like an unnecessary middle-man type of role, the registered agent fills a vital role.
The registered agent’s job is to provide a reliable way for the state to contact an official representative of your business at any time, which is especially important if your business is ever sued. If you didn’t have a registered agent, a lawsuit could progress through the courts without you even knowing about it, which is obviously far from ideal.
While Connecticut does not provide a recommended list of registered agent services, we reviewed the top options and compiled a list of the best Connecticut registered agent services based on price and overall value.Who Can Be a Connecticut Registered Agent?
The Connecticut Secretary of State dictates that a registered agent can be either a business entity which has been registered with the Secretary of State and has a Connecticut address, or any Connecticut resident who is over 18. In either case, the registered agent must have a physical street address (P.O. boxes do not qualify). If you are an adult who resides in Connecticut, you may serve as your own registered agent. For foreign entities only, the Connecticut Secretary of State may serve as the designated registered agent.
Aside from the legal requirements, an important aspect to discuss is who should be your registered agent. You have the right to declare yourself as your own registered agent, which has its pros and cons.
On the positive side, you can save some money by not paying anyone to serve as your agent, but you’ll also likely need to make your home address a matter of public record, which is not ideal. Additionally, you’ll need to be physically present at your business during all standard operating hours (9-5, M-F).
Some entrepreneurs like to have a friend or family member serve as their registered agent, but if that person doesn’t have experience in this position, they might not know what is expected of them. In addition, designating your lawyer or accountant as a registered agent can work, but these options are usually quite expensive.
Our preference is to hire a professional registered agent service, which provides a combination of convenience, affordability, and peace of mind that is unrivaled by any of these other options.
How Do Connecticut Residents Get Served?
The most important part of a registered agent’s role is being served a summons.
In Connecticut, the process of the service of a summons starts when a plaintiff files a claim against the business entity. Once the claim is submitted to the Court Clerk along with the $95.00 filing fee, the plaintiff is given specific, county-specific instructions on how to proceed.
If all necessary steps are completed, you will be given the opportunity to hire a proper officer (such as a state marshal) to serve the summons to the defendant’s registered agent.
How to Designate a Connecticut Registered Agent
The answer to this question depends on what type of business you’re starting, but with either a corporation or an LLC, you’ll need to designate your registered agent when you form your company.
In Connecticut, you will be required to designate your registered agent when you sign your formation document for your business entity. This will either be done by printing and submitting PDF versions of the Articles of Organization form for LLCs or the Certificate of Incorporation form for corporations located on the “Forms and Fees Page” of the Secretary of State’s website. Alternatively, you may complete and submit an online version of the Articles of Organization form or the online version of the Certificate of Incorporation form from the Secretary of State’s website.
In any case, the formation document must be accompanied by a Change of Agent form as proof of consent of the party you are designating which includes your new agent’s signature. If the document lacks a signature, the formation form will be deemed unacceptable.
How Can I Change My Connecticut Registered Agent?
If you would like to change your registered agent for any reason, the process is pretty simple.
You must submit either the Change of Agent form. The form can be printed and mailed to the Commercial Recording Division of the Connecticut Secretary of State or it may be completed online using the Secretary of State’s online document filing platform.
The fee for either document is $50.00 and should be made payable to the “Secretary of State”.
How Does a Connecticut Registered Agent Resign?
Sometimes, a registered agent may have to resign from their position.
There is no official form required for submission in order to resign in the state of Connecticut. Instead, the current registered agent must simply submit two copies of a statement of resignation and a payment of $50.00 either by mail, fax or in person to the Connecticut Secretary of State, Commercial Recording Division.
The former registered agent must provide immediate written notice informing the business entity that a resignation has occurred.
Why Should You Hire a Professional Connecticut Registered Agent Service?
Hiring a professional registered agent is basically the best of both worlds between serving as your own agent, and designating a lawyer or accountant.
Privacy
The biggest benefit in our opinion is the privacy protection this allows, as you will be able to keep your personal address private. There’s also a major advantage compared to having an attorney or accountant serve as your agent, namely the fact that registered agent services are almost always much cheaper.
Professional Service
Another reason we like this option is that these companies specialize in providing quality registered agent service. They know exactly what’s expected of them, and there are rarely any issues to speak of.
Nationwide
The other major benefit of hiring a registered agent service is that most of them operate in all 50 states, so that if you ever want to expand your business into another state, you won’t need to hire an additional registered agent. Your same registered agent will be able to provide the coverage you need in your new state, while still providing the same service in Connecticut. If you hired a lawyer or accountant, they would only be able to help you expand to a new state if they have another physical office in that state.
You Stay Compliant
Finally, most professional registered agents operating in Connecticut offer some sort of compliance calendar. With this service, your registered agent helps you keep track of due dates for ongoing LLC maintenance requirements like annual reports, which is a valuable bonus.
The top registered agent service providers include some other appealing attributes, including access to their extensive customer support networks. Some of them include a full year of registered agent service with any business formation package, which can be a real money-saver. Another welcome attribute is that some registered agent services provide volume discounts if you require service in multiple states, or if you prepay for multiple years.
What Is the Penalty for Not Designating a Registered Agent in Connecticut?
You need to have a registered agent to form your limited liability company or corporation in Connecticut in the first place, but if you let your registered agent service lapse, there could be some serious consequences.
Failure to maintain a registered agent could lead to your business losing its good standing with the state of Connecticut, and the state also has the right to officially dissolve your LLC if they choose to.
Another issue would be the difficulty of being served if your business is sued. If the state cannot get ahold of your registered agent, a court may decide to go ahead with the lawsuit without your knowledge, which could even lead to a judgment against you. This can happen not just if you fail to designate a registered agent, but also if your agent is not present during business hours to accept the document delivery.
Conclusion
As you can see, the task of designating a registered agent for your Connecticut business isn’t quite as easy as just writing down your own name.
There are significant downsides to just about every option in our opinion, but we recommend hiring a professional registered agent service because that option has the fewest disadvantages. They charge affordable rates, and you never have to worry about losing your good standing, having your LLC or corporation dissolved, or having a lawsuit proceed in your absence.
If you have any further questions, you can contact the Connecticut Secretary of State:
Denise W. Merrill
30 Trinity Street
Hartford CT 06106
860-509-6003