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.