Registered agents play an important role in keeping businesses compliant with state regulations. Most states require businesses to have a registered agent on file when they form their business entity. The registered agent can be a professional service, the business owner, or a colleague, as long as they meet the state’s criteria.
The main purpose of a registered agent is to help businesses maintain effective corporate compliance by receiving legal notices and sending annual report filing reminders. Registered agents act as gatekeepers for businesses, so owners can take appropriate action and resolve potential issues in a timely manner. By having a registered agent on file, businesses can ensure that they are staying compliant with state regulations and avoid any potential penalties.
For example, when you have an LLC and you have your annual renewals, the state will typically send out correspondence reminding you that you need to pay your annual fees. If you’re late, you’ll get correspondence about this. If there are any changes to the technology they’re using to update the LLC process, they will send this to your Registered Agent.
Most business owners are familiar with the concept of a Registered Agent, but after their LLC is up and running, they may be tempted to save a few bucks by not maintaining one. However, there are significant consequences to letting your Registered Agent designation lapse.
Your LLC may no longer be considered in good standing with the state, which could subject it to penalties and fines. In addition, your LLC could lose its ability to enter into contracts or bring a lawsuit. Furthermore, you risk not receiving important correspondence which requires a response, such as service of process or other legal papers.
In short, it’s not worth the hassle or the risk to let your Registered Agent designation lapse. Choose You Registered Agent so that you can focus on running your business.