The primary responsibility of a registered agent in Vermont is to accept important legal notices and tax documents and then forward them to the appropriate person in the business.

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 other 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.

Administrative Dissolution – In Vermont, if the business doesn’t have a registered agent, the state can dissolve the entity, which will strip the owners of personal asset protection should the business be sued.

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.

Yes! Business owners, members, officers, and even friends and family that meet the state of Vermont’s registered agent requirements can be a registered agent.

Provided one of the members or officers lives in Vermont, it is less expensive to be appointed as your own agent rather than hiring a service. While this is the route many businesses take, there are a few reasons to consider hiring a service.

Privacy – The address of all Vermont registered agents 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 knowing 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 also the remote possibility of a vindictive litigant or upset customer showing up at your house.

Availability – Vermont 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.

If you act as your own registered agent, there is no 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.

If the registered agent changes, the entity is required to file a change of registered agent.

A registered agent can be changed by submitting the Change of Registered Agent or Office Form along with the filing fee to the Vermont Secretary of State.

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.

Unless the registered agent is also authorized to sign on behalf of the entity, they are not legally allowed to sign.

Only entities registered with the Vermont Secretary of State, such as corporations and LLCs, need to register a registered agent. Sole proprietorships and general partnerships do not.