Appointing a Registered Agent by State
Although most states have the same requirements when it comes to
the registered agent it is still important to know the requirements and
rules in each state. The registered agent plays a vital role when it
comes to compliance and ensuring legal correspondence received
and provided to the business.
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What is a Registered Agent
A registered agent is a third-party person or entity who is designated by your company to act on the company’s behalf by accepting documents for the business, including tax and legal documents. Most states, but not all, require a company to designate a registered agent. However, even if your state does not require it, designating a registered agent is generally a good idea.
The registered agent may or may not have a role in the company, and it’s often better if they don’t, as this leaves them to concentrate solely on their work as your registered agent. An RA receives all paperwork for your business and informs you when it’s time to fill out and file paperwork with the appropriate agencies.
Penalties for not having a Registered Agent
So, what if you don’t retain a registered agent? If your state requires an RA and you fail to obtain one, you can face fines, fees, penalties, and the loss of your good standing with the state. Among those possible penalties, a severe one includes the loss of the use of the state’s court system while you’re not in good standing. Also, if you lose good standing, you will be forced to file for reinstatement, which could mean not only further penalties and fees, but also embarrassment.
A Registered Agent is a person or authorized entity who can accept legal documents, tax documents and notifications from a government office on behalf of a Corporation or LLC.
The main function of the Registered Agent is to receive service of process (legal correspondence) on behalf of the company. If the company is being sued, the agent is the person that will receive the lawsuit.
The Registered Agent can be any individual (over the age of 18) or authorized entity that resides at a physical location within the state of filing. A P.O. box does not qualify.
The agent is responsible for legal correspondence which is handled during normal business hours Monday-Friday 8:00 am to 5:00 p.m.
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Comparison Chart– Compare all entity types to determine the proper structure for your business.
State Specific Information – Find out more about your state requirements.
Tax Savings Calculator – See how much in taxes can potentially be saved when filing for S Corporation status.Comparison Chart – Compare all entity types to determine the proper structure for your business.
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