Texas Registered Agents: Requirements, Benefits, and How to Choose

What is a registered agent?

A registered agent is designated by a business for the purpose of receiving official legal documents, such as lawsuit papers, subpoenas, and other important notices, and government correspondence, like those from the Texas Secretary of State. Having one in place ensures that all official state communications and other legal paperwork will be received and addressed promptly.

What are the requirements for Texas registered agents?

The Texas Business Organizations Code (BOC) outlines all of the requirements for a registered agent, who must:

• Be an individual who is a Texas resident, or be an organization (other than the business) that is registered to do business in Texas
• Consent to being a registered agent for the business
• Maintain a business office, which is called the registered office, at a street address in Texas (not a P.O. Box, a private mailbox, or a mail service)
• Have someone available at the registered office during normal business hours to receive service of process for the business

Why Texas businesses need a registered agent 

Texas law requires a registered agent and registered office for every corporation, limited liability company, limited partnership, limited liability partnership, and limited liability limited partnership that is organized in Texas (a domestic entity) or organized in another state, territory, or country and conducts business in Texas (a foreign entity).

Having this individual or organization in place is not only a legal necessity in Texas, but it also ensures that your business stays on top of all official paperwork and notices.

How to choose the right Texas registered agent

You have two choices when selecting a Texas registered agent:

1. Designate an "in-house" registered agent, who must be an individual person who is an owner, employee, or any other person with the authority to act as RA of your business entity.
2. Hire an outside registered agent, who may be an individual person or an entity (corporation, LLC, etc.) that is in the business of serving as a registered agent for many companies.

Whether you choose an "in-house" registered agent or hire an outside Texas registered agent service, it is important to designate one that can be relied upon to notify you promptly when important legal documents are received.

Designating an in-house Texas registered agent

If you designate an owner (including yourself) or employee of your company as the registered agent, you will save several hundred dollars in the annual cost of an outside Texas registered agent. However, there may be disadvantages:

• Someone must be at the designated registered agent's street address during regular business hours. This may be difficult to ensure if your business operates remotely or if you are operating out of your home, where a responsible adult must be there during the day.
• Because your company’s address is the registered office, if your company moves, you are required to notify the Texas Secretary of State of this address change and pay a fee of $15.
• You risk the exposure of being served with legal papers in front of clients and employees.
• Your business address will be a matter of public record with the Secretary of State. Especially with a home-based business, you may want to keep this information private.
• Companies will frequently obtain registered agent addresses from the Secretary of State and mail solicitations, so you may receive more junk mail.

Designating an outside Texas registered agent

If your business does not have a regular office with a street address in Texas that is staffed during normal business hours, you should consider hiring an outside registered agent.

Even if you do have the required street address and staffing, the advantages of hiring an outside registered agent include the following:

• You won’t have to worry about receiving documents, as there will be a designated person or organization doing this job. Instead, you can focus on running your business.
• If your company moves, you will not need to notify the Secretary of State of a change in registered agent address (because the two will be different).
• Your clients and employees will not be present when any legal papers are served.
• Your home’s or business’s physical address will not be on record with the Secretary of State as your registered office.

You’ll want to make sure that you choose the right Texas registered agent service—one that is trustworthy, efficient, and reliable; provides a seamless, stress-free experience for businesses; and perhaps even one that offers additional services. To find the best one for your company, ask other business owners in your area who they use, research top-rated registered agents and ensure that they have good reviews, and compare prices and services.

LegalZoom offers the flexibility and reliability that business owners need by providing registered agent services. You’ll get an alert when state-related and legal mail arrives, and you’ll even be notified of upcoming filing deadlines—because we understand that you’re busy enough as it is.

Can you be your own registered agent in Texas?

You may be wondering, “Can I be my own registered agent in Texas?” Yes, you can—and this may be advantageous for some business owners who may not be able to afford to hire (or don’t want to hire) an outside registered agent. 

Many of the pros and cons of being your own Texas registered agent overlap with those covered earlier regarding designating an in-house registered agent. But there are two stand-out disadvantages for business owners who designate themselves for this position.

For one, business owners have a lot on their plates and might not have the time to dedicate to anticipating annual reporting deadlines or receiving official mail and legal notices—all of which can be part of a Texas registered agent’s job.

Furthermore, business owners are often pulled out of the office for meetings, events, and travel. This poses a risk if they are their own registered agent, as they are required to be available at the registered office during regular business hours.

So, while you can designate yourself, it might be in your best interest to do so as an owner of a business. Designating someone else or a Texas registered agent service will free up your time to focus on growing your company and ensure that your business stays compliant.

How to appoint a Texas registered agent in 3 steps

The process for appointing a registered agent in the Lone Star State is fairly simple. Just follow these steps.

Step 1: Obtain their consent

Before filing for business registration, all business entities must get their registered agent’s consent via official documentation before designating them on their certificate of formation.

Send Form 401-A to your desired registered agent service. Once they sign and date the document and send it back to you, you now have their official consent. This form is not required to be submitted to the Secretary of State, but it is a good idea to keep it on file as proof of compliance.

Step 2: Provide their info on your certificate of formation

Next, fill out the registered agent and registered office section on your certificate of formation (this document is what you’ll submit when filing for business registration). Note whether the Texas registered agent is an entity or a person, and provide the registered office address. 

Submit your completed certificate of formation to the Texas Secretary of State’s office along with the payment for the applicable filing fee.

Step 3: Change the registered agent or office, if needed

In the future, you may want to change registered agents for whatever reason. To do so, you must file Form 401 with the Secretary of State and pay the $15 fee (or $5 for nonprofits). Again, be sure to obtain the new registered agent’s consent before filing Form 401.

If your current registered agent service’s name or office changes, they will be the one to notify the Secretary of State by filing Form 408.

Consequences of not having a registered agent in Texas

Appointing a registered agent in Texas is a legal requirement, so there are consequences of not having one. 

Without designating a registered agent, Texas businesses run the risk of their filing paperwork being rejected, as all entities are required to provide information about their designated registered agent service on their Certificate of Formation. 

But there are other scenarios in which businesses may be penalized even if they fill out their Certificate of Formation appropriately. For example, all business entities registered to do business in Texas must obtain consent from the registered agent to perform their duties. The registered agent must complete Form 401-A, either in electronic or written form. This signed consent should be kept with the company's records. If consent is not obtained, the Texas business may incur financial penalties. 

Another example is if the registered agent is not found at their address, if the address doesn’t comply with the Texas BOC guidelines, or if the registered agent has resigned from or rejected their appointment. In these cases, the Secretary of State will send notice, giving the business time to designate a new registered agent and file the appropriate paperwork. If this is not done in the time allotted, the Secretary of State can terminate the business, a process called administrative dissolution.

Finally, without a dedicated registered agent, businesses will be on the hook for receiving all official notices and paperwork. Additionally, a registered agent service may also notify businesses of upcoming annual franchise tax report deadlines. If these deadlines aren’t met, a Texas business may lose its good standing, referred to in Texas as Franchise Tax Account Status. 

What other services do professional registered agents offer? 

Registered agents sometimes offer additional services, such as: 

• Sending reminders when annual reports or license renewals are due
• Recordkeeping, such as keeping documents on file in a secure online account
• Mail forwarding
• Compliance monitoring
• Business address services, providing you with a real Texas business address

When you’re ready to find a Texas registered agent service, trust LegalZoom with your critical business documents and filing deadlines.

FAQs

Is it mandatory to have a registered agent for my Texas LLC?

Yes, Texas LLCs are required to have a registered agent. The Texas Business Organizations Code states that all domestic or foreign filing entities must designate a registered agent; this means that sole proprietorships don’t have to because they do not submit business registration filings with the Texas Secretary of State.

How do I change my registered agent in Texas?

To change your registered agent in Texas, first obtain the new person's or organization's consent through Form 401-A. Then, submit Form 401 to the Secretary of State and pay the applicable filing fee. 

How much does it cost to hire a registered agent in Texas?

The cost to hire a registered agent can cost several hundred dollars per year. The total cost may vary depending on the services provided. For example, a Texas registered agent that provides supplementary services, like compliance monitoring and annual report reminders, may charge more.  

Do registered agents in Texas offer mail-forwarding services?

Yes, many registered agents in Texas offer mail forwarding as an additional service on top of their regular duties. This type of service may be limited to state-related and legal mail, or it could include client mail and packages. Research Texas registered agent services to understand what mail-forwarding options are available.

Edward A. Haman, Esq., contributed to this story.