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What is Registered Agent Resignation?

When forming a legal entity most states require the appointment of a registered agent.  The registered agent is responsible for sending state/government mail and accepting service of process (legal documents).  It is the entity’s responsibility to maintain the registered agent by paying the agent’s annual fee.  If the registered agent is not maintained, the agent has the right to resign as agent, per state statute.

What does resignation of agent mean for your entity?  Once the registered agent resigns your entity is put into an administrative status.  The name of the entity also becomes available for use.  Resignation of agent can cause legal implications for your business, as the right to transact business in the state has been compromised.  It can also result in additional fees, as the entity will need to reappoint the agent.

Quick tips to maintaining a relationship with your registered agent:

  • Reach out to the agent of record, understand their role, form the relationship so you know who to contact with questions, set the agent renewal date based on what works best for your business.
  • Make sure the registered agent has the correct contact information in their system, as this information is used for sending the annual invoices, state/government mail to possibly include annual report notices and the most important, service of process.
  • Set your billing cycle for what works best for your company.  Many clients choose a January – January billing cycle but, Incserv can set this to what works best for you.
  • Pay the registered agent invoice based on the payment terms.

If you have any questions about Incserv’s registered agent services, please feel free to reach out via email to info@incserv.com or by calling 302.531.0855.

 

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The Perplexing World of Uniform Commercial Code Demystified! Pt 2: UCC Filings – the “proper” way to complete a UCC-1 Financing Statement

For the second installment in our series on The Perplexing World of Uniform Commercial Code Demystified, we’d like to talk about the “proper” way to complete the debtor name on a UCC-1 Financing Statement.

Perfecting the name of an organization or individual in a UCC-1 Financing Statement is very important in the protection of your security interest.  Unperfected UCC filings can be deceptive and catastrophic.

If the debtor is an organization, the name listed in 1a should match the last filed public record as filed with the Secretary of State where the entity is formed.  For instance, if the corporation is filed under the name: ABC Services, Inc. the name in 1a should be listed as the same.  It should not be listed as: ABC Services Corp.  If the organization files for a name change, after the UCC-1 is filed, the UCC-1 should be updated to reflect the change in the debtor name, via a UCC-3 Amendment.

If the debtor is an individual, the name listed in 1b should match the individual’s unexpired driver’s license or ID card.  If the individual does not have one of these two identifications, the UCC-1 should list the debtors first and last name.  For instance, if the driver’s license or ID card lists the person’s name as Rose Lee Redman, the UCC-1 should include first, middle and last name.  It should not be listed as: Rose L. Redman or Rose Redman.

You can file a UCC and request a Search to Reflect nationwide with us today by sending us your requests to orders@incserv.com.  Please give us a call if you have any questions or would like additional information.   Keep an eye out for the next installment on who authorizes a UCC filing.

 

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Delaware LLC Franchise Taxes Due by June 1st!

The Delaware 2019 Limited Liability Company, Limited Partnership and General Partnership taxes are due on or before June 1, 2020. If taxes are not paid by June 1, a penalty is assessed and interest will begin to accrue. Your company will no longer be in good standing and can even be at risk of going void.

DE 1st quarter taxes for Corporations are also due on or before June 1, 2020.

Taxes can be paid by:

  • Logging into Snapshot™, click here. (LLC, LP and GP taxes can be paid in Snapshot™) (Quarterly taxes cannot be paid through Snapshot™)
  • Calling Incserv to assist at 800.346.4646.
  • Going directly to the state website.

Sign up for ARFS now to allow Incserv to keep you in good standing; let us do the remembering for you!

If you have any questions or need help paying your taxes, give us a call or email us.  We’ll be happy to assist you!

 

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The Perplexing World of Uniform Commercial Code Demystified! Pt 1: UCC Filings – What are they and where to file?

Living in the World of Uniform Commercial Code can be perplexing.  This blog is the start of a series to start the discussion of UCC-1 filings, what they are, and where to file.

A UCC-1 Financing Statement (an abbreviation for Uniform Commercial Code-1) is a legal form that a creditor files to give notice that it has or may have an interest in the personal property of a debtor.  For example, if you, lend money as part of a loan, or offer credit for the lease or purchase of equipment of any kind, you may file a UCC-1.  The UCC-1 protects the creditor’s interest should the debtor default on the loan.  Filing the UCC-1 timely is very important; as a secured party, you want to make sure the filing is filed before any other to secure your interests.

The question arises: Where do I file?  The below chart lists out the most common debtor types:

Debtor Type

Where to file UCC Financing Statements

Registered organizations (Corporation, LLC, LP, etc.) File at central filing office of state where entity was formed or organized (i.e. Secretary of State) and/or County recording office where principal office is located
Organizations with one place of business  County/State of place of business
Organizations with multiple places of business  Count/State of chief executive office
Indian Tribes and Non-U.S. entity organized in foreign jurisdiction without a notice system  In Washington, D.C. and other applicable jurisdictions
Individuals  County/State of principal residence

Stay tune for the next installment, which will dive deeper into the World of Uniform Commerical Code.

 

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