A registered agent is someone you appoint to receive official business correspondence on behalf of your business. These include business registration documents from the Secretary of State, compliance renewal notices and court processes if your business is sued.
This agent must promptly forward such documentation received to its principal or the business on whose behalf it acts. The agent can be appointed by any type of entity including an LLC, C Corp, or any other entity type.
The requirements that must be met to be eligible to be a registered agent are quite simple.The agent must be a resident of the state in which your company is registered company or does business. The agent must also have a physical address to deliver documents.
Is a registered agent mandatory?
State laws require that each business has a registered agent and you face serious consequences if you do not have one. Generally, an individual who is a member or owner of a company can be the required agent for their company however, third party agents are designated as registered agent for several reasons including
- Privacy – Avoid being spammed by advertisers, sales or marketing companies
- Knowledge – These agent are knowledgeable about the industry
- Reminders – Registered agents typically send compliance reminders
The details of registered agents must be current and updated. Your company will no longer be considered to be in good standing with the state in which you are registered, if there is no registered agent appointed or and in addition, could potentially be subjected to potential penalties and fines.There’s also a substantial risk of not receiving service of process or other important correspondence which requires a response.
While a registered agent with a company provides a basic and simple function, it’s also extremely important. Selecting an agent that can adequately perform this function is an important process for your company and your peace of mind.
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Oh great insight. Thank you so much for this
Love this insight. Thank you.