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.