Registered Agent vs Organizer (Key Differences Explained)
Forming an LLC entails appointing certain individuals to act as an organizer and a registered agent to launch and maintain the company.
As an LLC consultant with over 10 years of practice helping businesses with formation and compliance, I've seen firsthand how confusing these two roles can be for new entrepreneurs. Many assume they're the same person or that one role is optional.
After working with LLC attorneys on 40+ formation cases, I'll clarify what each role does, who can fill them, and why both matter for your LLC.
Quick Summary
- A registered agent conducts Service of Process while an organizer signs and files the Articles of Organization, both on behalf of the LLC
- The LLC has the option to appoint a member or employ a professional service to act as the registered agent and organizer for the company.
- The Registered Agent Service Market is projected to grow at a 7.58% CAGR through 2030, reflecting businesses' increasing preference for professional registered agents [1].
- For new business owners, I advise you to employ a legal professional to draft, sign, and file the Articles of Organization to ensure its legality.
What Is a Registered Agent?
A registered agent is a person or business that conducts service of process and receives vital legal documents on your entity’s behalf.
This role has become increasingly significant, as evidenced by US Census Bureau data showing that 5.2 million businesses were started in 2024, each potentially requiring a registered agent.[2].
An LLC registered agent also has the following responsibilities:
- Serving as the official point of contact for the company.
- Being available at all times throughout regular business hours.
- Ensure necessary paperwork reaches the business owner.
You can appoint a qualified individual, LLC member, or a service provider to act as your registered agent, as long as they meet the following criteria:
- Be authorized and available to receive and handle legal documents during business hours
- Be at least 18 years old.
- Have a physical address in the same state where the company transacts business.
The qualifications vary depending on the state, that’s why I advise business owners to determine specific state business laws.
"A major advantage of using a registered agent service is that they save you the stress of appointing multiple individual agents, especially when you want to expand to other states."
- Lou Viveros, Growth & Transition Advisor
What Is an LLC Organizer?
An LLC organizer is an individual who prepares, signs, and files the Articles of Organization on behalf of the company. The document is the legal basis for the creation of an LLC as a registered business entity in the state [3].
The organizer may be a member of the LLC, a friend or family member (above the age of 18), or a professional third party, such as an attorney or accountant.
Differences Between an LLC Organizer and a Registered Agent
3 Common Mistakes to Avoid When Appointing
Selecting your organizer and registered agent requires careful attention to avoid costly delays.
The most frequent error is using an unavailable business name. Your organizer must verify name availability through your state's business entity database before filing, or the state will reject your application.
The second mistake is providing incorrect registered agent information. States require a physical street address in the formation state, not a P.O. Box, and your agent must be available during business hours.
The third error I've seen is calculating the wrong filing fee. Your organizer should verify current fees on your Secretary of State's website before submitting payment.
Can I Be My Own Registered Agent?
You can be your own registered agent; however, running your business entity simultaneously can be challenging, which is why I advise business owners to hire a professional.
There are several reasons why you should avoid being your registered agent, including:
- Time: Registered agents must be available during regular business hours, limiting your schedule.
- Privacy: If you are listed as your registered agent, your personal information becomes a matter of public record. Colleagues of mine were served important documents at their residential address.
- Location: Registered agents must live in the same state where the business operates.
- Inability to Expand: Acting as your registered agent limits your company from expanding to other states because you cannot open many offices and be available during business hours in each of them simultaneously.
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FAQs
How Many Organizers Does an LLC Need?
An LLC needs one organizer to handle the formation process.
Can My LLC Organizer Be My Registered Agent?
Yes, your LLC organizer can be your registered agent. All 50 states allow you to name the same individual as your LLC's registered agent and organizer.
Reference:
- https://www.researchandmarkets.com/reports/6090366/llc-registered-agent-service-market-global
- https://advocacy.sba.gov/2024/11/19/new-advocacy-report-shows-small-business-total-reaches-34-8-million-accounting-for-2-6-million-net-new-jobs-in-latest-year-of-data/
- https://www.law.cornell.edu/wex/articles_of_organization