A registered agent is a person or company designated to receive legal documents and official correspondence on behalf of a business entity. Every business registered with a state must have a registered agent with a physical address in that state.
What Registered Agents Do
Accept Service of Process
When someone sues a business, legal papers must be formally delivered. The registered agent receives:
- Lawsuits and legal summons
- Subpoenas
- Official government notices
- Tax documents
- Annual report reminders
Maintain Compliance
Registered agents help businesses:
- Stay current on filing deadlines
- Receive renewal notices
- Maintain good standing status
Who Serves as Registered Agent
Individual Officers
A company officer or owner can serve as registered agent if they:
- Have a physical address in the state (not a P.O. box)
- Are available during business hours
- Are willing to be publicly listed
Commercial Registered Agent Services
Professional services offer registered agent coverage:
- National firms covering all 50 states
- Law firms and corporate service companies
- Prices range from $50–$300+ per state per year
The Address Concentration Problem
A small number of registered agent addresses are linked to an enormous number of business registrations:
- 0.21% of addresses are connected to 26.6% of registrations
- A single building in Wilmington, Delaware hosts hundreds of thousands of entities
- Commercial agent offices in state capitals serve as registered addresses for massive numbers of companies
This concentration is legitimate—but it means:
- Registered address ≠ business location
- Address alone reveals little about the actual business
- Many entities at one address requires deeper investigation
Registered Agents and Shell Companies
The presence of a commercial registered agent isn't inherently suspicious. However, certain patterns warrant scrutiny:
Potential Red Flags
- Entity has only a registered agent address (no other presence)
- Registered agent is the only connection to the filing state
- No operating location can be identified
- Combined with other shell company indicators
Legitimate Use Cases
- Companies operating in multiple states need local agents
- Small businesses don't want home addresses public
- Privacy-conscious owners use agent services
- Out-of-state businesses registering to do business
Registered Agents in KYB
What Agent Data Reveals
- Minimum compliance with state requirements
- A point of contact exists in the state
- The business has ongoing registration
What It Doesn't Reveal
- Where the business actually operates
- Whether the business is legitimate
- Who actually controls the entity
- Any operational details
Verification Approach
When verifying an entity with only a registered agent address:
- Identify other addresses (principal office, operating locations)
- Check for operating status indicators
- Verify through additional data sources
- Apply appropriate risk assessment
Key Takeaways
- Registered agents receive legal documents on behalf of business entities
- Commercial agent services are common and legitimate
- A few addresses host millions of registrations—registered address ≠ operating location
- Agent-only presence is a risk indicator when combined with other factors
- KYB must look beyond registered addresses to verify actual business operations
Related: Secretary of State | Operating Location | Formation Agent | Shell Company
