When you form or register your company with the Secretary of State (or similar state filing authority), you’ll be asked to provide the name and address of a registered agent for service of process. In some states, you'll also be asked whether that agent is a "commercial registered agent" or a "non-commercial registered agent," and it's not always obvious what the distinction means or why it matters.
This article breaks down the difference between the two, which states recognize commercial registered agents, and why appointing one may be the better option for your business.
What is a commercial registered agent?
A registered agent is an individual or business entity that maintains an address or office where it can receive legal process, demands, notices, and other communications from state filing offices or courts on your behalf. The registered agent then forwards these to you, so you can address them along with your legal counsel.
You're required to appoint a registered agent when you form a business entity, such as an LLC or corporation. If you register in additional states beyond your home state (known as foreign qualification), you'll need to appoint a registered agent in each of those states as well.
In some states, that registered agent can be designated as a "commercial registered agent."
A commercial registered agent is an individual or business entity that files a registration with the state's filing authority, as defined by the Model Registered Agents Act (MoRAA). The Act was finalized in 2006 by the Uniform Law Commission and the American Bar Association. This registration includes the agent's name, its entity type and jurisdiction of formation (for business entities), a statement that it is serving as a commercial registered agent in the state, and the address where service of process, notices, and demands can be delivered for each entity it represents. The state's filing office maintains an index of these filings, listing all available commercial registered agents in the jurisdiction.
A non-commercial registered agent is an individual or business entity that has not filed this type of registration. It hasn't listed its name and address with the state or made a formal statement that it is acting as a commercial registered agent.