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What is a Registered Agent and Why Are They Important?

A registered agent is the company or person you designate to receive legal and tax notices for your company. Most jurisdictions legally require entitiesWhat is a registered agent and why are they important? such as corporations and limited liability companies (LLCs) to list a company or individual physically located within the jurisdiction and available normal business hours to serve as this point of contact. Resident agent, statutory agent, and statutory representation are some of the additional titles a registered agent may go by.

So, why is a registered agent important? Well, aside from the legal requirement telling you that you have to have one (which in my book makes them kind of important), a registered agent helps you sustain your business by providing important documents and notices to keep you compliant in the jurisdictions you formed or qualified to do business in. Since these documents and notices usually require an action within a limited amount of time, it’s imperative your agent always has up-to-date contact information for you.

As mentioned earlier, the registered agent will receive and forward important legal and governmental documents and notices. In the case of legal documents such as Service of Process (SOP), you may have only a few days to respond to a summons. If your agent doesn’t have your current contact information, important response dates could be missed, resulting in significant legal repercussions. The same holds true for annual report and franchise tax notices. Invalid contact information may equate to a missed filing date and major headache, with late fees, penalties, and interest continually accruing.

Not only is keeping your registered agent up-to-date with current contact information for your entity important, but so is ensuring your annual registered agent fees are paid. Failure to maintain a registered agent may result in your agent resigning. When an agent resigns, the company is no longer considered to be in good standing with the jurisdiction and you risk losing the legal protections your entity may provide you. Returning to good standing with the jurisdiction then usually requires additional fees and may even involve filing new documents. So, why risk it?

If you have any questions or need assistance with Registered Agent Services, feel free to reach out to us. We’re always happy to help!

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What is Registered Agent Resignation?

Karen Elliott, Assistant Vice President of Incorporating Services, Ltd. shares with us her insight about registered agent resignations.

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 to me via email to info@incserv.com or by calling 302.531.0855.