Appointing and maintaining a Colorado Registered Agent is necessary for every LLC in the state. The primary role of this agent is to receive service of process on behalf of the LLC. Service of process includes legal documents like the notice of a lawsuit, summons, subpoenas, etc.
The agent must maintain a physical address where service of process can be reliably delivered. The court system uses process servers to track and deliver the service of process. Once the process server delivers the documents to the registered agent, it is deemed that the LLC has been notified.
Given the importance of this role, a Colorado LLC must appoint and continuously maintain a registered agent in the state. Failure to do so can have several consequences, including the loss of good standing with the state. If process servers fail to deliver legal notices, a court case against your LLC may proceed without you knowing of it!
Who Can Be A Colorado Registered Agent?
A CO LLC has several options when it comes to appointing a registered agent. The state does allow plenty of leeway in selecting the registered agent for your business. Any agent should fulfill the following requirements:
- The agent should maintain a physical street address in Colorado. PO Box or similar addresses aren’t acceptable.
- If the CO registered agent is a person, he or she should be an adult and a legal resident of the state.
- If the agent is a business entity, it should have permission to operate in the state and have an office in Colorado.
- A business entity can be its own registered agent.
The business entity as a registered agent usually refers to commercial registered agents. If convenient, an LLC can hire a company to be its registered agent. This often proves to be a fruitful approach, which is why it is quite popular.
Colorado is unique in the sense that it allows an entity to be its own registered agent. Your Colorado LLC can be its own registered agent. Most states don’t allow LLCs to serve as their own registered agents. This can be a huge advantage for many businesses and make things simpler and more convenient for them.
Whatever path you choose, you must have the consent of a registered agent indicating their acceptance of the role.
Can I Be My LLC’s Registered Agent In Colorado?
Yes, as long as you fulfill the state’s legal requirements for registered agents. Simply put, if you can maintain a physical address in Colorado, you can be your LLC’s registered agent. Or, you could choose to appoint your friends or family members for that role.
Technically, you have the following options when appointing a registered agent:
- You can be the registered agent for your LLC.
- It is possible to appoint family members and friends to that role.
- You can hire a commercial registered agent.
When you appoint a registered agent, it’s important to see not just their qualification for the role, but also their ability to handle the responsibility.
Responsibilities Of A CO Registered Agent
Reliable execution of the responsibilities of the registered agent is very important. So when you hire an agent for your LLC, consider their capability of handling the following responsibilities:
- Maintain a physical address (registered office) where service of process can be delivered.
- Be available during normal business hours (9 am to 5 pm) in case service of process arrives.
- If service of process arrives, the agent must receive it and forward it to the LLC as soon as possible.
- In case the agent receives notices from the state, the same should be forwarded to the LLC.
The agent works as a point of contact between the state and your LLC. So, while a lot of communication flows through the agent, remember that not all communication should flow through the registered agent. Conventional documents should flow directly through the LLC. The registered agent should be limited to the responsibility of dealing with the service of process and state documents.
Things You Should Know When You Become Your Own Registered Agent
Before you become your own registered agent, there are a few things about the role that you should know. It’s not just about the responsibilities, but the other aspects and intricacies that come with being your own registered agent.
Remember that the state requires LLCs to continuously maintain a registered agent. If you choose to be your own registered agent (or appoint family/friends), things can get a bit challenging. You might be away for a vacation or otherwise unavailable when service of process arrives. It’s a small possibility, but there’s still a risk.
Privacy is another issue. The details of the registered agent are part of the public record. So information, like your address, is easily searchable for anyone who wants to look for it. A lot of people aren’t comfortable with their personal details being freely available. This is why many commercial registered agents market privacy as one of their services.
Although, in Colorado, there is a way to get around these problems. Especially if your LLC has an office and maintains normal business hours. You can have the LLC be its own Colorado registered agent.
That way, the agent (the LLC itself) can be available at all times during normal business hours. Also, the address in public record will be the company’s business address.
Hiring Commercial Registered Agent In Colorado
Even with several options available, many Colorado LLCs still choose to hire commercial registered agents. You could attribute several reasons for this, including Colorado registered agent service or the convenience of hiring a service.
In any case, professional handling of the role is a big draw towards commercial registered agents in Colorado. Some of the advantages to expect from hiring commercial registered agents are:
- Professional Service: A commercial registered agent is likely to have a well-staffed office with adequate training. They’ll be equipped to receive service of process and forward it to the LLC quickly.
- Convenience: Outsourcing the role of the agent is usually more convenient than handling the responsibility in-house.
- Discreet: Your LLC’s customers, clients, and employees don’t need to see the company getting served a lawsuit by process servers. This could be a potentially embarrassing situation that many companies would hope to avoid.
- Privacy: Since the commercial agent’s address will be used where required, your own address can stay private.
The cost of hiring a commercial agent usually varies depending on the agent and the services they offer. You can reasonably expect to spend more than $100 annually on maintaining a registered agent.
How To Change Your Colorado Registered Agent
One way to change the registered agent for your Colorado LLC is to update the information when filing the (annual) periodic report with the Secretary of State. However, the periodic report is only filed annually. If you need to change the agent urgently, it’s better not to wait around for the time to file the periodic report.
Another way to change the Colorado Registered Agent is by filing a Statement of Change Changing Registered Agent Information form with the Colorado Secretary of State. Yes, the form name really has the “change changing” in its title. This form can be submitted online and has a filing fee of $10.
The appointment of a new registered agent should also include a statement of consent from the registered agent, where they agree to accept the role.