What is a Colorado Registered Agent?
A registered agent is a responsible third-party who is registered in the same state in which a business entity was established and who is designated to receive service of process notices and correspondence on behalf of a Colorado corporation, Limited Liability Company (LLC), or Limited Liability Partnership (LLP).
Learn more about the registered agent, their duties, requirements, and more.
Registered Agent Overview
A registered agent (also referred to as a resident agent or statutory agent in some states) is a person or company that is designated to be the official point of contact between the government and your business entity.
Not only is a registered agent required when forming an LLC or corporation, but you must maintain a registered agent to keep the entity in compliance. Besides the requirement of designating a registered agent at the time of formation, there are several reasons to have one:
- Not Receiving Legal Notices – If the listed registered agent cannot receive legal notices, this lawsuit will still proceed. If a process server is unsuccessful in reaching the company’s registered agent, the court can proceed with the case. This could result in a judgment being placed against the business without the owners knowing.
- Penalties and Fees – By not maintaining a current registered agent, penalties and state fees can be levied against the entity and, in some cases, the owners too. Once an entity is no longer in good standing with the state, the owners may lose their liability protection and are at risk personally.
- Entity Closure – Waiting too long to remedy the lack of a registered agent may result in administrative closure or dissolving the entity.
Common Questions About Colorado Registered Agents
Why is a registered agent required in colorado?
The requirements for an entity to have a registered agent are formed under Colorado Statutes 7-90-701, which mandate that registered entities will have and continuously maintain a registered agent and office within the state.
A registered agent is required by the Colorado Secretary of State when filing a business entity such as a corporation, Limited Liability Company, and Limited Liability Partnership. This appointment is first made in the entity formation documents (Articles of Organization or Articles of Incorporation) but can be changed at any time.
Sole proprietorships and general partnerships do not need a registered agent.
What is required of a registered agent in Colorado?
The primary responsibility of a registered agent in Colorado is to accept important legal notices and tax documents and then forward them to the appropriate person in the business.
The registered agent needs to have a physical street address (often referred to as a registered office or principal office) in the state of Colorado. This can be your home address, the address of a family member, an accountant or attorney, the address of the business, or a Colorado registered agent service. Any physical address in the state may be used, but PO Boxes and mail drop services are not acceptable since someone has to be available to sign for documents.
The agent will also need to be 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.
Who can be a registered agent for an LLC in Colorado?
A registered agent in Colorado can be any resident of the state who is 18 years or older, a registered Colorado domestic business entity, or a foreign business entity authorized to do business in the state. An entity may not be its own agent.
How do you appoint a registered agent in Colorado?
The registered agent is initially appointed on the business formation paperwork that is filed with the Colorado Secretary of State.
Should you be your own Colorado registered agent?
Any individual, business owner, LLC member, officer, director, etc., of a business entity that meets the state of Colorado registered agent requirements can be a registered agent.
While there is no cost for a business owner to be the registered agent, there are a few reasons many business owners choose to hire a registered agent service:
Privacy – The address of the registered agent becomes public record and is available for anybody to see. This can be especially concerning if someone is doing business on the side, and they don’t want their employer to know about the business. Also, if the business is sued, the notice will be delivered to the address on file. This could mean employees, customers, or even neighbors witnessing the event. There is always the remote possibility of a vindictive litigant or upset customer showing up at your house.
Availability – Colorado requires the registered agent to be available at the principal address during regular business hours. The biggest issue with availability, especially if a home address is used, is if the agent goes on vacation or is otherwise away for some period of time and can’t be reached.
If the Business Expands to Additional Locations – If the business has a physical presence in multiple states (offices, warehouses, employees, etc.), a foreign entity registration will often need to be filed with those states. A registered agent will need to be appointed with a physical address in each state.
Due Date Reminders – Registered agent services provide annual report reminders and updates on any state requirements.
How much does a Colorado registered agent service cost?
Depending on the services provided, a commercial registered agent service typically costs between $100-$150 per year. Northwest Registered Agent is a popular service that charges $125 per year and offers several extras such as document scanning and mail forwarding and Harbor Compliance has a basic service starting at $99.
Some entity formation companies, like IncFile, includes registered agent service at no cost for the first year when you register your corporation or LLC with them.
Can a Colorado registered agent be changed?
A Registered Agent can be changed by submitting the Statement of Change form, along with the filing fee, to the Colorado Secretary of State.
After filing the form, the LLC operating agreement or corporation bylaws will need to reflect the new registered agent information.
Is a registered agent liable for the actions of the business?
The only liability a registered agent faces is from a lack of timely transmission of correspondence. If the registered agent is negligent in sending documents promptly, and the entity suffers a financial loss, the registered agent is responsible for paying those damages.