What Is The Difference Between Commercial Registered Agents vs. Non-Commercial Registered Agents

The main difference between commercial vs noncommercial registered agents in the commercial registered agent has a Commercial Registered Agent Listing with the Secretary of State and the noncommercial registered agent does not.

Commercial registered agents are one of the registered agents lawfully nominated to be the recipient of a business’s services and processes in a given state. 12 states have provided the difference between a commercial registered agent and a non-commercial registered agent. However, you will find related vocabulary and ideas in several other states.

One is likely to encounter the title “commercial registered agent” during your company registration process or when you need to change your registered agent at the department of the secretary of state. Likewise, you will meet the corresponding title of a “non-commercial registered agent” while pursuing a similar process.

We have prepared this post to illustrate the distinctions between a commercial registered agent and a non-commercial registered agent. We will also show you how to nominate a dependable commercial agent for your business. Check out our guide on the #1 registered agent service.

Commercial vs Noncommercial Registered Agents

The Definition Of A Commercial Registered Agent

A commercial registered agent refers to a person or an entity that is registered with the corporation authority in the respective state through a special listing statement. The goal of a listing statement is to simplify correspondence between the commercial registered agent and the secretary of state.

The special listing includes the commercial registered agent’s information such as the company name, the type of the entity and the location address where the service is offered.

Ease of communication allows the commercial registered agent to provide the state with a list of the companies it works for and make huge changes for the addresses. Consequently, it allows commercial registered agents to provide dependable, opportune and proficient services to their clients.

In states that outline the differences, most national registered agents such as Harbor Compliance are recognized, commercial registered agents.

The Definition Of A Non-commercial Registered Agent

Many persons and most single-state registered agent corporations are considered non-commercial registered agents and are not registered through a listing statement with the secretary of state.

While commercial registered agents work for many companies (hundreds or thousands), non-commercial agents usually represent only a handful of companies. A lot of non-commercial agents work in one or a few states. Additionally, they are likely to require other benefits given to commercial registered agents.

The Definition Of Model Registered Agents Act (MoRAA)

Both commercial and non-commercial registered agents have some common and fundamental professional duties. They must abide by the statutory provisions of keeping a working physical address and agreeing to their nomination.

However, the Model Registered Agents Act (MoRAA) spells out the key legitimate differences separating commercial from non-commercial registered agents.

The International Association of Commercial Administrators ratified a raft of measures to guide the registration process of registered agents in 2014. They ended up with a document called MoRAA, which, among other consequences, set apart the two types of registered agents: commercial and non-commercial.

MoRAA provides a rationalized guideline to enable registered agents to register their commercial entities with the state corporation authority. Simultaneously, MoRAA allows commercial agents to efficiently update their professional information, to quit or unregister. MoRAA has enabled registered agents in some states to accept their appointment without agreeing to use a physically-appended signature.

Generally, MoRAA has rationalized the connection between commercial registered agents and state corporation officers.

The following are the main benefits of working with a commercial registered agent.

The List Of The States That Have Approved And Fully Adopted The Model Registered Agent Act (MoRAA)

The Uniform Law Commission is mandated to maintain an updated enactment map for state legislation relating to the Model Registered Agent Act. Presently, the following 12 states have fully adopted MoRAA:

#1. Arkansas
#2. District of Columbia
#3. Idaho
#4. Indiana
#5. Maine
#6. Montana
#7. Mississippi
#8. Nevada
#9. North Dakota
#10. South Dakota
#11. Utah
#12. Wyoming

Also, the following list includes the states that have partly adopted sections of MoRAA or prepared a similar guideline for their states.

#1. California
#2. Colorado
#3. Delaware
#4. Hawaii
#5. Massachusetts
#6. Pennsylvania
#7. Washington

Please note: Pennsylvania lacks a precise title for a “commercial registered agent”. In its place, Pennsylvania asks entities to designate a registered office that serves as the physical address in the Commonwealth.

Entities allowed to provide services of a registered agent such as Harbor Compliance can register with the Pennsylvania Department of State to operate as a Commercial Registered Office Provider (CROP).

What Are The Benefits Of Working With A Commercial Registered Agent?

Your business can greatly benefit from representation by a commercial registered agent.

  • Elimination Of Common Clerical Errors – Commercial registered agents are required to provide their addresses to the secretary of state. This restricts companies to select an agent from the corporate filings. This way, there are few errors arising from a failed delivery of the documents.
  • Your company will be exempted from getting the registered agent’s physical signature on state forms provided you are in a state with commercial registered agent requirements. This is because the state officials have already obtained the necessary approval using the listing statement filed by the commercial registered agent.
  • Your company enjoys faster services and processes supported by the robust network infrastructure. Commercial registered agents have efficient infrastructure from working with numerous companies. This ensures your company receives dependable services and processes from representation by a commercial registered agent. Additionally, many commercial registered agents can work in all states, which well supports your company’s expansion journey.