A Registered Agent (sometimes also referred to as "resident agent") is the person appointed to accept legal documents on behalf of the corporation. Corporations and LLCs must choose a person to act as their agent, so in case someone sues them the papers will be served on the registered agent at the registered office.
What is Registered Agent?
A registered agent (sometimes also referred to as "resident agent") is the person appointed to accept legal documents on behalf of the corporation. Corporations and LLCs must choose a person to act as their registered agent, so in case someone sues them the papers will be served on the registered agent at the registered office.
There are no restrictions regarding who can be a registered agent other than the person must be located and available at a physical street address within the state during normal business hours.
Why Do I Need One?
The purpose of the Registered Agent is to maintain a consistent physical legal address in the state in which your company is incorporated or doing business. It also will receive governmental and legal correspondence, including your annual report, any delinquency notices and many other documents that your company may be required to respond or take action.
Most states require that a registered agent be listed for the business in the state of incorporation or a state in which it is doing business. The state will suspend any company if it fails to maintain an agent.
Serving As Resident Agent
You or any other individual who meets the state requirements and who agrees to act as agent for the company may serve as Registered Agent. However, keep in mind the following disadvantages:
Because of those disadvantages it is advised to use a professional registered agent service, especially if your business is home based or retail.
How Much Does It Cost?
Registered Agent fees are approximately $99.00/year payable in advance. You may cancel registered agent services at anytime as long as you provide proof that another agent has been named in the state of incorporation or that the business is no longer active.
REMEMBER: in order for your business to maintain good standing status it must also maintain a Registered Agent.
What Is Limited Liability and Why It Is Important?
Limited liability is a way to make sure that a person who is engaging in business does not risk his or her personal possessions in case the business fails. In other words - you risk what you put in.
What Is Corporate Veil And How It Can Be Pierced
If you are a business owner, one of the most significant reasons to incorporate or form a limited liability company is to protect your personal assets from a business creditor's claims against your company. This ability of a properly-formed maintained company to shield its owners from personal liability is sometimes referred to as the "corporate veil."
Closing a Chapter: Dissolution of Your Legal Entity.
Various reasons could lead to the business dissolution, such as bankruptcy, retirement, or change in career direction. When an entity is no longer doing business, it is very important to follows the legal steps in "winding itself up" as a legal entity.
