REGISTERED AGENTS FOR CORPORATIONS

2007-03-08 10:33:40

( Business )



The corporate laws of almost every state contain provisions requiring corporations to maintain a registered agent. In most states, physical presence is no longer obligatory to incorporate or qualify a business. Registered agents are used as substitutes instead. So what are registered agents?

A registered agent is the person or office designated to accept legal process and compliance mail on behalf of the corporation. Also called resident agent, the registered agent must be situated and available at an address within the state of incorporation. In addition, the name of the registered agent must be stated in the incorporation documents filed with the State Office.

If your corporation is involved in any litigation, legal papers would be delivered to your registered agent. The risk of a default judgment is prevented if your corporation is able to respond to the lawsuit immediately.

Your registered agent would also receive your company’s annual reports and tax notices. This is to avoid penalties caused by late payments.

A registered agent must either be an individual living in the state (a director or officer of the corporation) or a company authorized to transact business in the state. If you reside in your state of incorporation, you can be your own registered agent. If not, you can use an incorporation company that provides registered agent services.

Failure to maintain a registered agent may result in penalties or fines for the entity, its officers and directors; revocation of the authority to conduct business in the state; or forfeiture of the corporate status.

On the average, registered agents cost a little over a hundred dollars per year. You would have to pay additional fees if you want your mail forwarded somewhere else.

Just remember, a registered agent is responsible in handling critical documents for your corporation. Therefore, make sure you select somebody you can trust.


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