Your business always requires the services of a registered agent to deal with legal matters and official correspondence. As an LLC or business owner, you must understand the difference between commercial and non-commercial registered agents.
It is vital to know that the12 states of the U.S essentially treat commercial and non-commercial registered agents' services differently. So let's see the reason and difference between the two.
Commercial vs Non-Commercial Registered Agent
Commercial Registered Agent
Commercial registered agents, either individuals or entities, are usually listed with the State they are authorized to operate. The listing statement allows the registered commercial agent to provide streamlined reporting services to the secretary of State. While listing with the State, the registered commercial agent is assumed to give the company name, address, and entity type. Providing an official address is required for receiving mail and documents needed to process as a commercial registered agent service provider.
Non-Commercial Registered Agent
Some registered agents, individuals or companies registered only in one State; and do not register themselves in more than one State. Such registered agents are called non-commercial registered agents. The significant difference between commercial and non-commercial registered agents is that the registered commercial agent files a listing statement with the secretary of State.
Non-commercial registered agents could only represent a small number of business entities. However, the registered commercial agent may represent thousands of companies. The non-commercial registered agent generally operates in one State or some other state.
The Model Registered Agents Act of 2006 (MoRAA)
Commercial and non-commercial registered agents serve the same purpose. Therefore, they must follow the exact statua\tory requirements, i.e. presenting their physical address and being available in the office during business hours to receive the legal papers.
Difference Between Commercial and Non-Commercial Registered Agent Services
The primary difference between commercial and non-commercial business agents is the Model Registered Agent Act announced in 2006. The act distinguished commercial and non-commercial business agents.
Now the majority of the U.S states follow MoRAA.However, some of the states have designed rules that are similar to the MoRAA.
Perform Research Before You Hire an Agent For Your Business
The responsibility of seeking information about hiring or not hiring a registered commercial agent rests with the business owner who will start or expand a business in one or more states. The registered commercial agent listed with the State and follows the rules of MoRAA must provide you with uniform filling services under the act.
However, the business owner must perform the research before hiring an agent as some states of the U.S follow, and some don't follow the MoRAA act. So, it's better to know which services you require and what registered agent you need to hire for your LLC or Business.
The States That Recognize Commercial Registered Agents
We share with you a list of states to help reduce your research work to identify which State has recognized commercial agents under the MoRAA. The states include Arkansas, the District of Columbia, Idaho, Indiana, Maine, Mississippi, North Dakota, Wyoming and many more.
States That Currently Have Not Adopted MoRAA
You may plan your business in the states like California, Hawaii, Pennsylvania, Delaware, Massachusetts, Washington or Colorado.
You don't need to go for a commercial business agent, as these states are not following MoRRA till 2021. So, you may use the services of a non-commercial registered agent here.
Advantages of Using a Commercial Registered Agent
Your LLC or Business may enjoy the benefit of commercial registered agent services in the following different ways:
- Your company needs only to list the name of the registered commercial agent in its official file. The registered commercial agent permanently maintains its address with the secretary of State.
- Hiring commercial registered agent services will allow you to avoid taking the physical signatures of the registered commercial agent on the State's forms. The registered commercial agent is already listed with State, and State takes the consent directly from there.
- The registered commercial agent has listed with state offices in one or more than one State. So, you can use the services of the same agent in multiple states as your business grows.