Registered Agent https://bizdeparture.com Just another WordPress site Thu, 01 Dec 2022 16:59:20 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://bizdeparture.com/wp-content/uploads/2022/08/cropped-favicon-32x32.png Registered Agent https://bizdeparture.com 32 32 How to Change your Registered Agent in Georgia https://bizdeparture.com/how-to-change-your-registered-agent-in-georgia/ Thu, 01 Dec 2022 16:56:57 +0000 https://bizdeparture.com/?p=350 If you want to change your registered agent in Georgia, you can do it when you file your annual registration or by filing an amended annual registration.

You can file your annual or amended registration online or by mail, along with the payment for the filing.

Information You Will Need to Change Your Registered Agent

The information you need to change your registered agent depends on your business or organization. If you’re a corporation, you’ll need:

  • The name or control number of the corporation
  • The name of the person filing the annual registration
  • An email address
  • The name and address of the new registered agent
  • The name and address of the corporation’s officers
  • The mailing address of the corporation’s principal office

If you’re changing the registered agent of a Limited Liability Company (LLC), Limited Partnership (LP), Limited Liability Partnership (LLP) or Limited Liability Limited Partnership (LLLP) you’ll need to provide mostly the same (or analogous) information. However, you won’t need to provide the name and address of corporate officers as there won’t be any to identify.

Can I Change My Registered Agent in Georgia Online?

Yes, and it’s probably the best way to make the change as it’ll be the fastest and cheapest way to do so. The processing for changing your Georgia registered agent online begins by going to the Georgia Corporations Division section of the Secretary of State website. From there, you can log into eCorp and provide the information of your new registered agent and pay the necessary filing fee.

Type of Registration Online Filing Fee
Annual registration for a for-profit corporation, professional corporation, LLC, LLP or LLLP $50.00
Annual registration for a nonprofit corporation $30.00
Annual registration for a foreign LLP $25.00
Amended annual registration $20.00

When changing your registered agent online, you’ll have to pay your fee by credit card (Visa, MasterCard, American Express or Discover). Also, there’s a $25.00 penalty if you file your initial annual registration late (after April 1). The penalty fee won’t apply for amended annual registration filings, though.

Can I Change My Registered Agent in Georgia By Mail?

If you want to mail in your annual registration form or amended annual registration form, you’ll need to go to the Annual Registration Form website and find your organization. After you’ve done that, you may print out your annual registration form and mail it to:

Office of Secretary of State
2 MLK Jr. Drive, 313 West Tower
Atlanta, Georgia 30334

If you’re mailing an annual registration form (and not an amended form), it must be postmarked by April 1. You may pay the filing fee by check or money order, and you cannot send cash. The filing fees when changing your registered agent by mail are as follows:

Type of Registration Paper Filing Fee
Annual registration for a for-profit corporation, professional corporation, LLC, LLP, or LLLP $60.00
Annual registration for a non-profit corporation $40.00
Annual registration for a foreign LLP $35.00
Amended annual registration $30.00

If mailing the initial annual registration form after April 1, you must include an additional $25.00 as a late fee.

Who Can Be a Registered Agent in Georgia?

Georgia’s requirements for being a registered agent are similar to most other states. The specifics will depend on the type of organization, though.

Domestic Profit and Nonprofit Corporation

The registered agent must be:

  • An individual or entity that resides in Georgia;
  • A domestic corporation or LLC; or
  • A foreign corporation or LLC that’s authorized to do business in Georgia

Foreign Profit and Nonprofit Corporation

The registered agent must be:

  • An individual who resides in Georgia and has a business office that’s the same as its registered office;
  • A domestic corporation or LLC; or
  • A foreign corporation or LLC that’s authorized to do business in Georgia

Domestic LP or LLLP

The registered agent must be:

  • An individual that resides in Georgia;
  • A domestic corporation or LLC; or
  • A foreign corporation or LLC that’s authorized to do business in Georgia

Foreign LP or LLLP

The registered agent must be:

  • An individual that resides in Georgia;
  • A domestic corporation or LLC; or
  • A foreign corporation or LLC that’s authorized to do business in Georgia

Domestic LLC

The registered agent must be:

  • An individual that resides in Georgia;
  • A domestic corporation or LLC; or
  • A foreign corporation or LLC that has a certificate of authority to do business in Georgia.

Foreign LLC

The registered agent must be:

  • An individual that resides in Georgia;
  • A domestic corporation or LLC; or
  • A foreign corporation or LLC that has a certificate of authority to do business in Georgia.

Foreign LLP

The registered agent must be:

  • An individual that resides in Georgia;
  • A domestic corporation or LLC; or
  • A foreign corporation or LLC that’s authorized to do business in Georgia.

Pitfalls You Should Avoid While Changing Your Registered Agent

Changing your registered agent in Georgia is a relatively straightforward process. Still, there are things you should keep in mind when making the switch. One thing to remember is that whoever signs the annual registration form could face criminal penalties if they knowingly make false and material statements when completing the form.

Inform Your Old Registered Agent

After you inform the Secretary of State in Georgia that you changed your registered agent, you’ll want to let your old registered agent know. This is important if you’re paying for a registered agent service and don’t need to pay for services you no longer need.

Check Regulations in Georgia

There are many statutory provisions concerning registered agents in Georgia. Basically, everything you need to know about changing your registered agent can be found on the Georgia Secretary of State Business Division FAQ web page. If you need to look up a specific statute, you can find them identified on that web page.

Conclusion

It doesn’t take much work to change your registered agent in Georgia. You can easily make the change when filing your annual registration statement. If you need to make the change after you file this form, you can file an amended annual registration statement.

Either method you use will require the payment of a filing fee.

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Registered Agent Requirements in Illinois https://bizdeparture.com/registered-agent-requirements-in-illinois/ Thu, 01 Dec 2022 16:30:59 +0000 https://bizdeparture.com/?p=347 Illinois registered agents must be residents of Illinois or be legally allowed to do business in the state. The registered agent must also have a street address in Illinois and be available during regular business hours to receive important documents, like service of process.

Requirements to Be a Registered Agent in Illinois

The requirements for becoming a registered agent in Illinois are set out in the state statutes. Specifically, the registered agent requirements for Limited Liability Companies (LLCs) can be found in 805 ILCS 180/1-35, and the registered agent requirements for corporations can be found in 805 ILCS 5/5.05.

The primary requirement for Illinois registered agents is that they must be a resident of Illinois. This means they must have a physical address (not a P.O. Box) in Illinois. They must also be capable of receiving service of process and other legal notices and documents on behalf of the LLC or corporation.

Who Can Be a Registered Agent in Illinois?

An individual or any other eligible entity may serve as an Illinois registered agent. “Eligible entity” can include the following organizations:

  • Corporation
  • LLC
  • Limited Partnership
  • Limited Liability Partnership

If using an organization as a registered agent, they must have the authorization to conduct business in Illinois. They must also have a physical address in Illinois that’s properly registered as the registered agent's address.

As for requirements for individuals serving as registered agents, they need to be legally qualified to receive service of process or other legal documents on behalf of the organization they represent. This means they must:

  • Have a registered office (with a street address) in Illinois
  • Be available to receive papers during normal business hours
  • Be a resident of the state of Illinois

Can I Be my Own Registered Agent in Illinois?

As long as you meet the statutory requirements for Illinois registered agents, you may be the registered agent of your organization. However, there are several potential drawbacks to being your own registered agent.

Limited Business Expansion

To be a registered agent in Illinois, you must be physically present at your registered address during normal business hours. If you wanted to expand to one or more states, you’ll likely need to have a registered agent for those states too.

This means there’s no way you can continue being the registered agent of your business in Illinois if you also want to be the registered agent in the state you just expanded to. This is because it’ll be impossible for you to be physically present at both registered addresses simultaneously during normal business hours.

Availability During Business Hours

If you want to act as the registered agent of your LLC or corporation, you need to be physically present at the address associated with your registered agent filing. So if you wanted to go out to lunch, go on an extended vacation or have a meeting with a client during the workweek, you’d potentially miss out on essential documents getting sent to your business.

Proper Handling of Important Documents

One of the biggest reasons you’re required to have a registered agent is to receive legal papers, such as documents indicating the start of a lawsuit. Properly responding to these documents promptly is essential if you want your business to respond effectively to legal allegations.

Nothing prevents you from taking action after receiving a legal document. But how confident are you that you’ll know exactly what to do before the deadline passes? 

If you think you could be late responding or respond incorrectly, that might be a sign you should find someone else to be your registered agent.

Awkward Situations

If you want to be the registered agent for your company, you’ll use an address where you’ll be present during normal business hours. This likely means using your business’ primary location for the registered agent address. This could lead to problems later on.

For example, what happens if a sheriff’s deputy shows up at your office and hands you legal papers? If your employees or customers see this, it might lead to rumors and gossip that could harm your business or the morale of your workforce.

Public Address

If you’re a registered agent, the address you use will be accessible by almost anyone with an Internet connection. This might not be an issue if you use an already publicly available address. But if you wanted to use a home address or an unlisted business address, this could be a problem.

Can the Founder of a Nonprofit Be His Own Registered Agent in Illinois?

Yes, as long as the founder can meet the requirements for being an Illinois registered agent as an individual.

Who Should I Appoint as a Registered Agent in Illinois?

It’s hard to say, as there are advantages and disadvantages to whichever option you choose. Also, the best choice may depend on how and where your business operates.

For instance, if you do business in multiple states, you should strongly consider hiring a registered agent service. Although if your company is low on money, you’re always at the office, and you only operate in a single state, then maybe it’s worth considering serving as your company’s registered agent.

Conclusion

The legal requirements to becoming a registered agent in Illinois are fairly easy to meet. However, there are practical reasons why you might choose a particular person or company to be a registered agent.

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How to Change Your Registered Agent in Illinois https://bizdeparture.com/change-your-registered-agent-illinois/ Thu, 01 Dec 2022 16:16:04 +0000 https://bizdeparture.com/?p=344 Changing your registered agent in the state of Illinois is a straightforward process that requires you to file a “State of Change of Registered Office and/or Registered Agent” with the Illinois Secretary of State.

You can use several methods to make the change, including online, in-person, by fax, and by mail.

Information You Will Need to Change Your Registered Agent

The precise information you need to provide to change your registered agent in Illinois will differ based on whether you’re a Limited Liability Company (LLC) or a corporation. If your business is a corporation (for-profit or non-profit), you will need to provide the following information:

  • Name of your corporation
  • State or country of your entity’s incorporation
  • Name and address of your current registered agent
  • Name and address of your new registered agent
  • How the corporation authorized the registered agent change
  • A sworn statement from the applicable individual that the information provided is true

The information needed for an LLC registered agent change is similar to that of a corporate registered agent change, but there are two main differences. The first difference is that you’ll provide the name of your LLC and not your corporation. The second difference is that you don’t need to provide the state or country where you created your LLC.

How Can I Change My Registered Agent in Illinois Online?

One of the fastest ways to change your registered agent is to do it online on the Office of the Illinois Secretary of State website using either the LLC or corporation online portals. However, the fees you pay depend on the type of entity you have and how quickly you want the registered agent change processed. If you pay extra for expedited service, the Secretary of State should complete the registered agent change within 24 hours of your request.

But you need to understand that this doesn’t count holidays or weekends. So if you go online and change your registered agent on Friday, even with expedited service, the registered agent change won’t be complete until the following Monday.

The following table outlines the registered agent change fees. One thing to remember is that you need to use a credit card to pay your fees online. The Illinois Office of the Secretary of State accepts Visa, MasterCard, Discover, and American Express credit cards.

Also, there will be a processing fee added to the underlying filing fee charge.

Business Type Processing Speed Fee
Business Corporation Routine Processing $25.00
Business Corporation Expedited Processing $75.00
Not-For-Profit Corporation Routine Processing $5.00
Not-For-Profit Corporation Expedited Processing $30.00
Limited Liability Company Routine Processing $25.00
Limited Liability Company Expedited Processing $75.00

How Can I Change My Registered Agent in Illinois Via Mail?

Changing your Illinois registered agent by mail will require you to complete the application form and mail it to the correct address along with payment.

Business Type Fee Mail Address
Business Corporation $25.00 Secretary of State Department of Business Services501 S. Second St., Rm. 350Springfield, IL 62756
Not-For-Profit Corporation $5.00 Secretary of State Department of Business Services501 S. Second St., Rm. 350Springfield, IL 62756
Limited Liability Company $25.00 Secretary of State Department of Business ServicesLimited Liability Division501 S. Second St., Rm. 351Springfield, IL 62756

Pitfalls You Should Avoid While Changing Your Registered Agent

Before you change your registered agent, you’ll want to make sure you take certain steps to ensure the process goes smoothly. If you ignore or forget to do certain things, it could lead to a legal or administrative headache.

Inform Your Old Registered Agent

After you submit your request to the Illinois Secretary of State to change your registered agent, you’ll want to contact your old one and let them know you no longer need their services. This is especially important if you’re paying for a registered agent service and don’t want to pay for something you will no longer use or need.

Check Regulations in Illinois

You’ll want to follow the Illinois legal requirements for completing a registered agent change. For example, you want to ensure you have the authority to change your Illinois registered agent. If your business is a corporation, your board of directors must approve the change. If your business is an LLC, it must be a member or manager with proper authority who can change the registered agent.

The Illinois Secretary of State’s website should have all the necessary information to complete this process. If you have any questions about your legal obligations, you can always contact the Office of the Illinois Secretary of State or read the Illinois statutes regarding registered agents for corporations and LLCs.

Conclusion

Changing your registered agent in Illinois is a relatively simple process. You have to fill out a form, either on paper or online, and pay a filing fee. All of this gets handled by the Illinois Office of the Secretary of State. And the most important information you’ll have to provide is the name and address of your old registered agent and the name and address of your new registered agent.

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How to Find the Registered Agent of an LLC or Corporation in Illinois https://bizdeparture.com/how-to-find-the-registered-agent-illinois/ Thu, 24 Nov 2022 13:08:29 +0000 https://bizdeparture.com/?p=334 The identity of an Illinois LLC or corporation is a public record. This means finding the registered agent is a simple process of searching the Department of Business Services database on the Office of the Illinois Secretary of State’s website.

All you need to complete a search is a file number or part of the name of the entity you’re looking for.

What Is a Registered Agent?

A registered agent, also known as a resident agent or statutory agent, is a business entity or individual that’s authorized to receive official documents and papers for certain businesses. Official documents usually include tax documents, official government correspondence, and legal service of process papers.

A registered agent isn’t necessarily the owner or controlling officer of the business, although they can be. If you’re trying to find an owner of a business, you can sometimes find out who they are using the same process used for finding the registered agent. This is because the manager, partner, or corporate officer of the entity you’re looking for will sometimes be its owner. However, when you look up an entity on the Illinois Secretary of State’s website, it won’t explicitly state who the owner is.

Who Can Be a Registered Agent in Illinois?

In Illinois, Limited Liability Companies (LLCs), Limited Partnerships (LPs), Limited Liability Partnerships (LLPs), and corporations (both profit and nonprofit) must have a registered agent. Generally speaking, anyone can be a registered agent in Illinois if they:

  • Are at least 18 years of age;
  • Are a resident of Illinois;
  • Have a physical street address (not a P.O. Box) in the state where the business is registered, and
  • Are available to receive documents during normal business hours.

Note that either an individual or an artificial legal entity, such as an LLC, LP, LLP, or corporation, can serve as a registered agent.

How to Lookup the Registered Agent and Owner in Illinois

Figuring out who the registered agent is for a business registered in Illinois can be done online and is a simple process.

Step 1: Type of Search

Note: If you are located outside of the U.S.A, you might be facing issues with accessing the Illinois Lookup tool as it is restricted to only being accessible within the U.S.A. You can use a VPN in between your internet Connection to get around this restriction. 
 
Go to the Office of the Illinois Secretary of State website’s Corporation/LLC Search/Certificate of Good Standing searchable database and choose the type of business you think the registered agent you’re looking for is assigned to. If you’re not sure, you can select, “Corporate and LLC.”

Step 2: Choose a Search Method

Depending on the type of search you’ve chosen, you can search for a business entity by using a Name, Key Word, Partial Word, or File Number

Step 3: Search Results

This is where you go through the search results to find the business that has the registered agent you’re looking for. Once you find it, click on the business name. It’ll take you to a page that lists a wide range of information about the entity, including
 
- Type of entity
- File number
- Status (active or inactive)
- The entity’s incorporation or admission date
- Registered agent name and address
- Name and address of key officers (if a corporation) or managers (if an LLC)
Address of the entity’s principal office

As you can see in this example, Apple Inc. has C T Corporation System as its registered agent, which is a Service by Wolters Kluwer.

How Can I Find the Registered Agent of a Nonprofit in Illinois?

The process for finding the registered agent of an Illinois nonprofit corporation is the same as looking for a for-profit corporation or LLC. In Illinois, nonprofit organizations are generally structured as corporations.

Conclusion

If you want to find the registered agent or key individuals of an LLC or corporation in Illinois, all it takes is a few minutes of searching on the Illinois Office of the Secretary of State’s website. You don’t even need the full name of the entity you’re looking for, although having a complete name or file number can save time and limit the number of potential search results.

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Who Can Be a Registered Agent? https://bizdeparture.com/who-can-be-a-registered-agent/ Thu, 20 Oct 2022 12:27:23 +0000 https://bizdeparture.com/?p=278 A registered agent can be either an entity (such as LLC or corporation) or an individual. In the case of individuals, almost any adult can be a registered agent. As long as they’re at least 18 years old and have a street address in the same state as your company, they can most likely serve as your registered agent.

The more practical question isn’t who can be a registered agent. Rather, it’s why someone should choose one person to be a registered agent over someone else.

General Requirements for Registered Agents

The exact requirements will vary from state to state. That being said, most states will have the following requirements for registered agents:

  • They must be a resident of the same state as your company.
  • They must have a physical mailing street address to receive documents; P.O. boxes are not allowed.
  • The registered agent must be physically present at the registered physical mailing address during normal business hours.
  • If the registered agent is an individual, they must be at least 18 years old.

Can a Registered Agent Be a Member of the LLC?

Yes, but that may not always be practical or wise. From a practical perspective, the member of the LLC who is a registered agent must be physically present at the LLC’s physical address during all business hours. This means if they’re in a meeting, on vacation, or out sick, they can’t accept important documents on behalf of the company while they’re away.

Another potential drawback with using an LLC member as a registered agent is that, most likely, they’ll register their physical address as the same location as the LLC. There’s nothing inherently wrong with this. However, if a law enforcement officer or process server makes a delivery or serves the LLC, it might be in front of customers, clients, and/or business partners. This might create questions about whether the LLC is in financial or legal trouble. 

Can the Owner Be a Registered Agent?

Yes, if you’re the owner of your business, you can be your own registered agent as long as you meet the above-listed requirements. But there are risks and drawbacks to being a registered agent and owner of your business. These mirror the problems with having an LLC member serve as your company’s registered agent.

Keep in mind that even if the owner can be a registered agent, some states such as California, will not allow a business entity to serve as its own registered agent (also known as an agent for service of process).

Can I Use a Mail-Forwarding Company as a Registered Agent?

It depends. In theory, a business that only acts as a mail-forwarding company probably can’t serve as your company’s registered agent. This is because the physical address of the mail forwarding company may not be in the same state as your company. There’s also a possibility that the physical address of the mail forwarding company isn’t the same as the physical address attached to your company’s registered agent.

In practice, you can probably use a mail forwarding company as your registered agent because many mail forwarding companies offer registered agent services to their customers.

Can a Registered Agent Be a P.O. Box?

No, because the majority of states require the registered agent to have a physical street address. Also, recall that part of the registered agent’s duties is to be physically present at the registered address during normal business hours. This allows them to receive delivery of mail or other important documents personally. This would not be possible with a P.O. Box.

Who Should I Hire as a Registered Agent?

When deciding who to have as a registered agent, the first major decision is to decide if you want to use a company, such as a registered agent service, or an individual. And if you choose to use an individual, you’ll need to decide what kind of individual to use. Below is a discussion of common registered agent choices and the pros and cons of each.

Registered Agent Service

Pros

  • They offer privacy in that the address of a registered agent service won’t be a personal or home address and any service of process is made away from the eyes of customers or clients.
  • They are professionals and know the ins and outs of what they must do to carry out their duties as registered agents.
  • They often operate in multiple states, making it easier to have one registered agent serve various jurisdictions. This is especially handy if you want to expand quickly.

Cons

  • They cost money. Although they’re not expensive, they can cost a few hundred dollars a year.
  • The business owner has less control over how and when they manage their paperwork.
  • Creates additional paperwork for a company by hiring an outside entity to handle part of the business’ operations.

Business Accountant

Pros

  • The business probably already has an accountant and this individual is motivated to act in your company’s best interests.
  • Many accountants are in the office during not just normal business hours but early in the mornings and late into some evenings.
  • Could cost less money than hiring a registered agent, at least if your business accountant is also an employee of your company.

Cons

  • Handling registered agent duties may take time and attention away from their primary duties of handling your company’s finances.
  • Most accountants only practice in one or a small handful of states. So if you plan to expand quickly or broadly, an accountant may not be ideal.
  • Because an accountant has other duties, it’s more likely they’ll forget to notify you of an important document that was just delivered.

Lawyer

Pros

  • Could potentially be cheaper than hiring a registered agent service.
  • Many businesses already have an attorney, either in-house or an outside firm, so hiring them as a registered agent doesn’t involve bringing in a total stranger.
  • Lawyers often have experience receiving important legal documents and promptly responding to them.

Cons

  • Lawyers are rarely licensed in more than three states. So they may not be a good choice if you plan on expanding to a state that your lawyer doesn’t practice in.
  • A lawyer acting as a registered agent may charge you the time it takes for them to handle your important mail. This may not be a lot of money, but in most cases, you’ll be overpaying for what you get.
  • Lawyers can get very busy and often spend time outside the office in court, at meetings or attending legal conferences with other attorneys.

Conclusion

The qualifications to become a registered agent are relatively modest. But this doesn’t mean you should hire or appoint just anyone to serve as your company’s registered agent. There are special factors to consider when choosing a registered agent, including maintaining privacy, ensuring availability during business hours and knowing what to do when important documents get delivered. 

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LLC Registered Agent Powers https://bizdeparture.com/llc-registered-agent-powers/ Fri, 14 Oct 2022 12:29:04 +0000 https://bizdeparture.com/?p=272 If you decide to create a limited liability company (LLC) for your business, you’ll notice that one of your requirements is to have a registered agent.

But what are the powers of registered agents, and what do they do? The short answer is that they are individuals or businesses that accept legal and government notices, as well as any other important documents on behalf of your business.

What's the Difference Between a Registered Agent and a Managing Member?

A managing member is someone who owns at least part of the LLC and also helps run the business. In contrast, a registered agent is simply an organization or individual that can receive important documents during normal business hours (9am - 5pm). This means that the managing member of your LLC can usually be your LLC’s registered agent, although that may not always be the case depending on state law.

However, it’s not always practical or wise to have your LLC’s managing member as its registered agent. For one thing, your managing member may not always be available to receive service of process or other important correspondence during the typical workday.

Another potential drawback is that a managing member who is also a registered agent will likely use the LLC’s primary business address as the physical address for registered agent purposes. This means there’s the potential for potentially uncomfortable or awkward situations where a law enforcement officer or process server shows up at your business (and in front of clients and customers) to serve your business with legal papers.

Is the Registered Agent a Member of the LLC?

No, although they could be. A member of the LLC or other LLC employee is often qualified to serve as the LLC’s registered agent, as most states simply require the registered agent to be 18 years of age and older, have a physical address, and be available to receive correspondence and legal papers during normal business hours. But this doesn’t mean a registered agent will have the same powers as an LLC’s member, founder, or owner. Besides being available to receive special documents on behalf of the company, a registered agent generally has no other purpose.

Can a Registered Agent Sign Documents on Behalf of an LLC?

Yes and no. The registered agent can sign documents on behalf of the LLC, but only to the extent they directly relate to receiving documents, like mail or service of process. For example, if your LLC is being served by U.S. Certified Mail, return receipt requested, someone must physically sign a document (usually a green postcard) identifying who they are and that they received a certain piece of mail. A registered agent will need to sign this document to carry out his or her duties as a registered agent.

That being said, the registered agent can’t sign any other documents on behalf of the LLC, like contracts or other legal documents, such as business filings. Suppose your LLC’s registered agent must also have the power to sign documents on behalf of your LLC. In that case, you should consider assigning the appropriate employee, officer, or managing member to be your LLC’s registered agent.

Can a Registered Agent Sign for a Trademark?

No. According to the U.S. Patent and Trademark Office (USPTO), only the attorney representing your LLC in the trademark matter or an appropriate LLC member can sign documents relating to trademarks.

Can I Change Who My Registered Agent Is?

Absolutely. Many LLCs and other required business organizations will hire a registered agent service to act as their registered agents. You are, therefore, free to choose a different registered agent service or individual to act as your LLC’s registered agent whenever you choose. The exact process will depend on where your LLC is located, but will typically entail paying a small fee and completing a few forms for your state’s relevant agency.

Things might get a little bit more complicated in situations where the current registered agent is an employee or owner of the LLC, and the LLC has specific policies or rules in place regarding how to choose a different registered agent. For example, the LLC’s operating agreement contains instructions on how the company should be managed, which can include how changes can be made to the responsibilities and voting powers of its members. But in these situations, it’s the LLC’s operating agreement that’s placing restrictions on changing the registered agent, not state law.

Can a Registered Agent Open a Bank Account on Behalf of the LLC?

Probably not. Remember, all a registered agent can do is accept legal documents, mail, notices, and other important papers for the LLC. They do not have the authority to enter into contracts, legal agreements, or business deals on behalf of the LLC. In cases where registered agents exercise these abilities, they will act as the LLC’s managing member or another authorized individual, not the LLC’s registered agent.

Conclusion

Having a registered agent is an important part of your business if you’re an LLC. Despite this requirement, registered agents have very little power, as they’re only needed to accept service of process in a legal matter and other important papers on behalf of the LLC they represent.

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When and How Should You Change Your Registered Agent? https://bizdeparture.com/change-registered-agent/ Fri, 19 Aug 2022 14:08:01 +0000 https://bizdeparture.com/?p=239 During your organization’s foundation, you needed to appoint a registered agent. This individual or agency has a massive responsibility, and they often appear as the face of your organization to entities or individuals who reach out to your organization’s headquarters.

Have you recently found yourself regretting that decision? Has your appointed agent become unavailable to fulfill the obligations required of them? Are you wondering if it’s possible to change your registered agent without shaking up your organization? Get the answers to all your questions below.

When Can You Change Your Registered Agent?

Your organization has the right to change your appointed registered agent at any time. That doesn’t mean the process is as simple as speaking it into existence, though. You’ll need to go through a distinct process to make it happen, which varies from state to state (more on that below).

Is There a Case Where It is Not Possible to Change Your Registered Agent?

While you have the right to appoint and change your registered agent as the organization owner, there are a few situations where it might not be possible to do right away. For instance, if you entered into a contractual agreement with a registered agent service for a specific period of time, then you might have to wait until the contract is fulfilled before you can change your agent. 

Does it Cost Money to Change the Registered Agent?

Another common question that most organizations have is – will it cost money to change my registered agent on file? In short, yes, it will likely cost you some money to change your registered agent. That’s because some states request that you pay a small filing and processing fee when you register a new agent. Typically this fee is between $10 and 75$.

Can I Use Different Registered Agent Services in Different States?

Does your organization operate in multiple states? If so, you know it might be impossible for an individual to act as your registered agent unless they have valid addresses in all the states where you operate. You will probably need to hire multiple individuals. If you opt to hire an agency, then you still might need to hire multiple different registered agent services because not all of these services operate in all 50 states.

When Should I Change My Registered Agent?

Are you currently considering changing your registered agent? If so, then you have your reasons, but you might not be fully convinced that it's time to change agents. Below, we’ll go over some of the top reasons why organizations decided to change registered agents:

You’re Expanding to Another State

When you expand your organization’s operations to another state, you’ll have to remain compliant with a whole new set of rules and regulations. You’ll also need to handle communications from a completely new state government, too. With that in mind, it might make sense to change your registered agent. You might opt to hire someone who has multi-state experience. Keep in mind that you could also opt to hire multiple registered agents, a registered agent service, or even several registered agent services to ensure that all your bases are covered.

You’re Unhappy With Your Current Registered Agent

Another reason why you might be considering changing your registered agent is when you’re unhappy with their performance. If your agent isn’t representing your organization like you want to be represented or if they’ve failed to be in office when you needed them to be, then it might be time to cut ties and move forward with a more reliable registered agent.

Your Registered Agent Can’t Fulfill their Obligations

Even if you’re happy with your registered agent, they might not be able to fulfill their obligations any longer. They may have decided to go with a different career path, or they may have new life situations that have come up and interfere with their ability to work for you.

When your registered agent can’t fulfill their obligations any longer, it’s time to find a new one as soon as you can.

Do I Need to Notify my Current Registered Agent After Removing Him/Her?

Yes. It makes sense to notify your current registered agent about the changes to your organization. You’ll need to ensure that they understand that they will no longer be acting as your registered agent. If your registered agent is a paid employee, then you'll also need to give them ample notice and comply with any state laws regarding letting your registered agent go.

Conclusion

When you appoint a registered agent, you’re placing a lot of responsibility and trust in that person (or agency). If you later decide that you’d prefer to change a registered agent, then the good news is that it’s a fairly easy process to go through. So long as you ensure you’ve done everything correctly, you’ll be able to move forward with a new registered agent ASAP.

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Can I Be My Own Registered Agent, or Should I Hire One? https://bizdeparture.com/can-i-be-my-own-registered-agent/ Wed, 20 Jul 2022 14:35:50 +0000 https://bizdeparture.com/?p=125 Can I be my own registered agent?” is one of the many important questions new businesses ask themselves, and while the answer is “yes,” you will need to properly understand what’s required of you. A registered agent is someone you appoint at the registered address of your business to accept official mail and service of process on the business’s behalf. You can appoint a person or even an entity, like your business itself.

However, if you are to fulfill the position yourself, there are some key factors you need to take into consideration. When forming an LLC, having a registered agent is required by law. The law doesn’t state that you can’t yourself fill the position when you start your business. We will look at why this position is required and answer the question of whether you can be your own agent and why you should or shouldn’t hire one.

Why States Require Businesses To Have Registered Agents

When you start an LLC in the states, it’s required by law to have a registered agent and a registered address. This law was put into effect because the government needed to have a way in which to reach the business reliably. 

When a lawsuit is filed against a business, the business needs to receive official notice of the lawsuit. Otherwise, it cannot go further in court. To ensure that all businesses can be legally and officially notified of such lawsuits, they need to have a registered address and agent where they can have the notice delivered. 

When a business grows to have thousands of employees, they might try to hide behind those numbers and claim they never received the notice to delay the court proceedings. The government implemented this requirement for businesses to ensure the business can always be reached and has no excuse for not having received any official notices and service of process.

Why Businesses Hire Registered Agents

Many businesses prefer to hire an agent to accept their official mail and service of process. This is especially common in bigger businesses or businesses that don’t have a physical store or headquarters.

If you start an LLC that is a web-based business with no physical headquarters, hiring a person to fill the role also means that you can list the agent’s address or office space as your registered address. You don’t need to list your home address or rent a space for a headquarters that will scarcely be used. This protects your privacy and fulfills the requirement of an agent without extra paperwork or unnecessary expenses on your part.

Another reason to hire an agent is if you have working hours outside the usual 9-5. While your business might not require you to be in the office around the clock, the agent accepting official mailneeds to be in the office during regular working hours. That’s a requirement to ensure the government can reach you and deliver any notices.

Furthermore, your business needs to be registered with each state it has a branch in. That also means that in every state you have a business location, you need a registered address and agent. In this case, it might be better to use services that appoint such a person in the state so that the different agents are all managed by one organization. You will also have access to all critical business notices in one place.

Can I Be My Own Registered Agent?

When forming an LLC, the question frequently emerges: “Can I be my own registered agent?”. The straightforward answer is yes, you can fulfill the position yourself with no legal problems. When they first start up, many small businesses elect to be their own agent, especially if the business already has a registered address.

Many companies prefer not to deal with the hassle of the paperwork themselves. Still, others would prefer to save some money, especially if it’s a new company starting up from the ground. There are no legal requirements that make it illegal to be your own agent, so technically, nothing stops you from listing your name or the name of your entity.

However, before you do so, make sure you consider what it would mean to fulfill this position yourself. There are many aspects to consider when you start an LLC, and taking on the responsibility of this role might add more to your plate than is needed.

The Benefits Of Acting As Your Own Registered Agent

While there are some benefits to being your own agent, there are also some drawbacks to note. We’ll examine some of the top benefits and the risks of acting as your business’s agent. We’ll also consider the top three benefits and risks of acting as your own agent.

Increased Privacy

Filling the position yourself ensures only you have access to confidential information. It keeps the possibility of a leak between your employees or to other competitors low and ensures you have complete control over the flow of information. Since you’ll personally accept any service of process or official mail, no one else will view those documents unless you want them to.

More Affordable

While there are many affordable agent services, it’s still an extra expense that you can cut if you’re building your business from the ground up. It means you won’t have to pay any fees for the service, and it won’t be necessary to appoint someone new on your payroll for the position.

Convenience

If you run a small business, it’s often an unnecessary expense to put someone on your payroll to simply accept any notices when you can easily do so yourself. This is especially true if you own a business that operates at the registered address where you are present during business hours in any case. 

What Are The Risks Of Being Your Own Registered Agent?

If you want to be your own agent, there are some risks you need to consider. The risks of being your own registered agent are not only to yourself but also to your company.

The most simple risk with some of the most significant consequences involves the potential of missing a delivery. You need to be present at your registered address during all business hours. If you step out for lunch and miss a notice being served, it can mean, from a legal perspective, that you didn’t respond promptly to the requirements of the notice. This could result in you automatically losing a lawsuit, since you were never present in court.

Another risk involves your privacy. When you’re the business’ official agent, and primarily if you operate your business out of your home, your address will be made a public record as the business’s registered address.

It also risks limiting your business to your state of residence. To expand your business to other states, you need an agent in each state, which isn’t possible if you don’t use a service or appoint another person.

Another, more social risk, is that you’ll most likely be served at work. This means if someone files a lawsuit against you, the notice can be delivered while there are customers and employees around to see it, which is not ideal for the reputation of your business.

Conclusion

From a legal perspective, the simple answer to “Can I be my own registered agent?” is “yes, it’s possible to fulfill the position yourself.” There are, however, some vital factors business owners should consider. These factors include the type of business, the business’ growth, and what levels of privacy you’re aiming for. Know the benefits and risks of fulfilling the role yourself when forming an LLC and the legal implications of doing so.

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Risks of Being Your Business’s Registered Agent https://bizdeparture.com/risks-being-your-registered-agent/ https://bizdeparture.com/risks-being-your-registered-agent/#respond Wed, 20 Jul 2022 12:50:09 +0000 https://bizdeparture.com/?p=91 When building and qualifying a company, business owners and entrepreneurs are required to decide on whom to designate as their registered agent.

In the United States, companies must have a designated person to represent the organization.

This makes it easier for both federal and state governments to contact and engage the company on issues such as taxation and service processes.

Who Is A Registered Agent?

A registered agent is the person who serves as the point of contact between the business and authorities. This person receives notices, summons, complaints, and other initial legal documents, including litigation files. Other documents served to a company's registered agent include tax forms, compliance reports, and annual report filing notices.

Documents from the Secretary of State's Office also pass through the desk of the registered agent when they are sent over. After receiving these documents, it's upon them to ensure that they are forwarded to the right personnel for further action. It's also the responsibility of this agent to track deadlines and due dates on behalf of the company. 

How Do You Pick A Registered Agent?

There are multiple options when considering candidates for the registered agent role. The easiest option is appointing yourself to represent your organization. You can also appoint a close family member or relative to receive notices on your behalf. Another alternative is to assign this role to one of your employees. 

If you want to consider outside help for this role, you can either hire your accountant or an attorney as your registered agent or outsource this task to a registered services agency. This way, you can be sure that you have professionals handling your company's representation. This option, however, comes with additional costs, and they could be expensive at times too. 

Is hiring an agency or an attorney worth the cost? Let's weigh the risks of being a registered agent to find out. 

Risks Of Being Your Business's Registered Agent

The United States law allows individuals to act as representatives for their businesses. While this might look like the most cost-effective option, considerable risks are involved. 

Here are some factors that make being your registered agent unsuitable:

You Should be Present Through all Business Hours.

As a registered agent, you must be available at your place of work during business hours, 8am - 4pm, or 9am - 5pm every day of the week. You can rarely take time off or step outside to run errands. This requirement makes it difficult even to take lunch breaks at times. 

The law requires that you are available to receive notices and other documents at all business hours. If you are not available, these documents will not be delivered, and you could miss out on important information. In the case of litigation notices, the lawsuits can proceed without your knowledge, denying you a chance to defend yourself when you miss a delivery. 

For a small business that can't afford to have employees in the office, this is a costly option. It's even worse if you don't have employees as you will become tied up at your workstation. 

You Can't Conduct Business Outside Your State.

Every company has to appoint a registered agent in each state they sell their products or provide their services. Furthermore, the registered agent must have a physical address in the state they are nominated to serve. 

If you're serving as your registered agent, it isn't easy to expand outside your home state. An individual can't be present in two locations simultaneously. If you are based in California and chose to represent your organization, you can't tap into markets in other states with this arrangement. 

An alternative way to tackle this hurdle when you nominate a registered agent internally is by having employees in each state. You can legally have employees as registered agents for your company in every state you operate. However, it's expensive to maintain brick-and-mortar locations across several states.

There's A Risk Of Mishandling Processes.

Internally sourcing for a registered agent risks fumbling key processes that prove costly to your business. Handling legal notices and formal company documents requires specialized skills and an eye for detail. It can also be difficult to keep deadlines and act promptly if you act as your registered agent as you run your business. If you hired a relative, a friend, or an underskilled employee, the same could happen.

Simple clerical errors such as noting the wrong date for a litigation appearance could have dire consequences, including being fined for failure to appear. If you missed a tax form return or an annual compliance report, you could expose yourself to investigations or heavy fines. 

Also, if you or an employee made an error in judgment and underestimated a document's importance, you could face the same harsh results. 

Your Address Becomes Public Record

When you nominate yourself, you are required to provide a physical address where you will run your business from. This is important for deliveries. While this may not be a concern if you have a business center, people running their companies from home might be wary of this. 

Making your address public means that people can look up and find your home, which is a privacy concern. In addition, you have to navigate through slow bureaucracy to change your business address. 

Getting Served In Front of Your Customers

A moment that business owners dread is being served. Worse still is being served in front of your customers. This could damage your reputation severely. Nobody wants to buy at a "rogue" business. Your employees could also decide to jump ship if you get served out of the blues bringing down your business. 

As the registered agent for your company, you have to receive all documents, including lawsuits at your place of business. As this has to happen during business hours, your customers will likely be there. There's no confidentiality in the process. 

Representing your own company helps keep costs down but has some serious drawbacks that outweigh the benefits. The risks of being a registered agent prompt business owners to look at other alternatives. So, who should you pick as a registered agent for your business? 

What's The Alternative?

To address the shortcomings of representing your business, hiring a registered agent service is the best solution. This way, you have a dedicated team of professionals who understand business and legal matters. An agency service will take care of important business documents and tax forms on your behalf. 

You only have to pay the annual fees on your end, and a load of reading through multiple business documents is lifted off your shoulders. A major plus is that you can easily find an agency within your budget that could be cheaper than hiring a full-time employee. 

A registered agent service will keep track of your documents and dates to ensure that you don't lag. They will also create a backup for your important documents in case of an accident or natural calamity that could bring unexpected loss. 

Most agencies have a countrywide presence, so you don't have to set up new structures when you expand. Your agency will gladly offer you its services in all states and guide you through the compliance requirements. An agency service also comes with helpful customer support to explain challenging legal issues and the ever-changing tax laws.

You can also choose to hire an attorney as your registered business agent. However, attorneys don't come cheap, which could significantly eat into your profits. Compared to agencies hiring an attorney is twice as expensive.

The Final Word

The law allows you to act as a registered agent for your business. At the same time, this is a risky move with harsh consequences. The role of a registered agent doesn't have much room for error, so professionals best fill it. The meager savings you make by representing yourself do not merit the dangers of it.

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