Registered Agent
Definition
A Registered Agent (sometimes called a Resident Agent or Statutory Agent) is an individual or company designated by an LLC to receive official legal and tax correspondence on behalf of the business. This includes service of process (lawsuits), state compliance notices, and tax documents.
Why it matters
Every single US state requires an LLC to maintain a registered agent with a physical address (no P.O. Boxes allowed) in the state of formation. The agent must be available at that address during normal business hours to sign for legal documents. If your LLC fails to maintain a registered agent, the state can administratively dissolve your company, stripping you of your liability protection.
While you are legally allowed to be your own registered agent in the state where you live, many business owners hire a commercial registered agent service (usually $39 to $150/year) to protect their privacy and keep their home address off public records.
Example
Alex forms an LLC in Florida but runs his business from his home. He doesn't want his home address listed on the public state database, so he hires a commercial Registered Agent service for $50/year. The service lists their commercial office address on his formation documents. A year later, when Alex's LLC is sued by a vendor, the process server delivers the lawsuit to the Registered Agent's office, who then scans and emails the document privately to Alex.