by 
The Curious Bag
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A registered-agent fee is charged by a third-party business or individual designated to receive official "service of process" (legal notice, subpoena or other official government communication) on behalf of a business entity.
Function
A registered agent receives tax and legal documents on behalf of a corporation, such as corporate fees and taxes, annual report forms and court summonses. The agent then forwards these documents to the business entity, making sure the entity acknowledges receipt.
Cost
Registered agent services can cost between $100 and $320 per year, depending on the company or individual who performs the service.
Significance
Penalties for not maintaining a registered agent can include the revocation of a business's corporate legal status. In some cases, the entity will be assessed additional fees to restore its proper status.
Benefits
By providing an alternate address specifically for legal notices, such as lawsuits, registered agents help corporations avoid default judgments by making sure they're aware that they're being sued.
Considerations
An individual may act as the registered agent for his own corporation, but the business cannot serve as its own registered agent.
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