I need a “resident agent” to incorporate my business. What is that?

All states require that business entities formed or registered to do business in the state maintain a registered agent in the state to accept service of process on behalf of the entity. In this context, “process” refers to the legal documents, usually a summons and complaint, used to commence a lawsuit against the entity. The idea behind the resident agent requirement is to insure that there is an identified individual or entity upon whom process may be served to notify the entity—whether it is a domestic entity formed in the state or a foreign entity formed elsewhere but doing business in the state—that litigation has been commenced against it. The states have somewhat different requirements for who may be appointed as a company’s resident agent in that state. Some states allow the business entity itself or a third party to serve as registered agent, sometimes with the secretary of state as backup, while others require the secretary of state to be the primary agent, with the entity or a third party as an additional agent. For more information, read our article on Why Every Business is Required to Have a Resident Agent.