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 New Jersey?
In this guide, we will break down all the details you need to know about New Jersey registered agents.
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What is a New Jersey Registered Agent?
One of the most common questions we receive from entrepreneurs in New Jersey 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 New Jersey does not provide a recommended list of registered agent services, we reviewed the top options and compiled a list of the best New Jersey registered agent services based on price and overall value.
Who Can Be a New Jersey Registered Agent?
According to New Jersey’s Division of Revenue and Enterprise Services, a registered agent may be either a natural person of 18 years or older, a domestic corporation, or a foreign corporation that is authorized to do business in the state.
In many cases, it’s common for companies to appoint either an individual associated with the business entity (such as the owner or an employee) or a corporation organized specifically for the purpose of provide the services of a 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 New Jersey Residents Get Served?
The most important part of a registered agent’s role is being served a summons.
In New Jersey, before a summons is processed, the plaintiff must first file a claim which briefly states the plaintiff’s case and requested reparations. The claim should be filed with the court office in the county where the defendant keeps their registered address. After paying a $35.00 filing fee (and an additional $5.00 for each additional defendant), then the clerk may process a summons.
If these steps are all taken correctly, the state of New Jersey will allow a sheriff, attorney, or specially appointed individual to serve a summons and a copy of the complaint to the defendant’s registered agent.
How to Designate a New Jersey 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 New Jersey, whether you’re forming an LLC or a corporation, you’ll be prompted to designate your registered agent when you complete the appropriate formation document. To do so, you may visit the State of New Jersey’s Online Business Formation platform, make an account, and select the correct formation document depending on your business entity type.
How Can I Change My New Jersey Registered Agent?
If you would like to change your registered agent for any reason, the process is pretty simple.
In New Jersey, this may be done by completing either Form C-104G Change of Agent/Address or Both for corporations or Form L-122 Change of Agent/Address or Both for LLCs, depending on the business entity type. The forms may be submitted either by mail to the state of New Jersey’s Department of Revenue or online using New Jersey’s Business Filing Service.
In either case, the fee to change your registered agent in New Jersey is $25.00.
How Does a New Jersey Registered Agent Resign?
Sometimes, a registered agent may have to resign from their position.
New Jersey resident agents wishing to end their appointment must first send written notice to the company from which they are resigning. Afterwards, the resigning agent must submit either a Certificate of Resignation of Registered Agent (form C104e) for corporations or a Certification of Resignation of Registered Agent Without Successor (form L-123) for LLCs. The fee to submit either form to the New Jersey Department of the Treasury is $25.00.
Why Should You Hire a Professional New Jersey 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 New Jersey. 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 New Jersey 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 New Jersey?
You need to have a registered agent to form your limited liability company or corporation in New Jersey 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 New Jersey, 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 New Jersey 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 New Jersey Secretary of State:
New Jersey Department of State
225 West State Street, 2nd Floor
Trenton, NJ 08608