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 Nevada?
In this guide, we will break down all the details you need to know about Nevada registered agents.
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What is a Nevada Registered Agent?
One of the most common questions we receive from entrepreneurs in Nevada 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 Nevada does not provide a recommended list of registered agent services, we reviewed the top options and compiled a list of the best Nevada registered agent services based on price and overall value.
Who Can Be a Nevada Registered Agent?
In Nevada, all registered agents are required to have a street address within the state rather than a P.O. box. When it comes to picking a registered agent, you have two options: you may select a corporation that is authorized to perform business in the state or an individual who is a resident of the state (including individuals affiliated with the business).
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 Nevada Residents Get Served?
The most important part of a registered agent’s role is being served a summons.
In Nevada, before a lawsuit can begin the plaintiff must first submit a letter of demand requesting payment directly from the business entity. If after ten days no agreement has been reached, then the plaintiff may submit a complaint to the appropriate court in order to open a lawsuit against the defendant. Depending on the claim type and amount of money in question, the fee to submit will be between $66.00 and $196.00. After paying any fees, the plaintiff must submit all necessary documents to the appropriate court.
If these steps are all taken correctly, the state of Nevada will permit a sheriff or his deputy to serve a summons to the defendant’s registered agent.
How to Designate a Nevada 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.
When establishing a new corporation in Nevada, you’ll be prompted to designate your registered agent when you complete the Domestic Corporation Articles of Incorporation. Alternatively, when forming an LLC in the state of Nevada you’ll be required to designate your registered agent when filling out the Articles of Organization for Limited-Liability Companies.
In either case, you’ll need to obtain written acceptance of the appointment from the registered agent. This can be done either on the form itself, or by asking your registered agent to complete the Certificate of Acceptance of Appointment by Registered Agent.
How Can I Change My Nevada Registered Agent?
If you would like to change your registered agent for any reason, the process is pretty simple.
The only form you must submit is the Statement of Change of Registered Agent by Represented Entity. This form may be used for both LLCs and corporations and requires only the business entity’s name and file number, the name and address of the new registered agent, and your signature. The fee to submit the form is $60.00 and may be submitted to the Nevada Secretary of State upon completion.
The form also requires the signature of the new registered agent certifying the acceptance of the appointment. However, if your new registered agent cannot sign the Change of Registered Agent by Represented Entity form, you may ask your registered agent to complete the Certificate of Acceptance of Appointment by Registered Agent in its place.
How Does a Nevada Registered Agent Resign?
Sometimes, a registered agent may have to resign from their position.
To resign in the state of Nevada, registered agents must simply complete a Statement of Resignation of Registered Agent. The document has a $100.000 filing fee and asks only for the resigning agents name, the entity’s name and entity number, and the name and address of the individual to which notice of the resignation was sent.
Why Should You Hire a Professional Nevada 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.
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.
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.
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 Nevada. 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 Nevada 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 Nevada?
You need to have a registered agent to form your limited liability company or corporation in Nevada 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 Nevada, 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.
As you can see, the task of designating a registered agent for your Nevada 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 Nevada Secretary of State:
Nevada Secretary of State
Nevada State Capitol Building
101 North Carson Street, Suite 3
Carson City, NV 89701