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Registered Agent – What Do They Do and Do I Need One?

Tuesday, 13 September 2016

by Erin McAllister, Paralegal

With the formation of a new business entity, should you consider obtaining a third-party registered agent? The answer to this question is an emphatic YES. Each business entity must have a registered agent (sometimes referred to as “resident agent” or “statutory agent”) for the reasons stated below:

1. Requirement. All states require business entities doing business in their state to have a registered agent with a legal address in their state (P.O. Boxes are generally not acceptable). This requirement stems from one of the most important duties of a registered agent - accepting service of legal documents for and in behalf of the entity.

2. Protection and Privacy. The registered agent can be a third-party individual or entity that provides a legal address for the company to receive notifications. Such notifications could include legal complaints filed against the business, tax forms from the state, and renewal information from the Secretary of State. A registered agent can provide an extra layer of privacy so that the owner’s personal information can remain hidden from immediate public disclosure.

3. Convenience. A third-party registered agent will accept documentation even when you are not in your home or office and can save you the potentially embarrassing situation of being served lawsuit papers in front of customers and your family. They can also minimize the hassle of tracking registrations and renewals to help ensure that you don’t miss important filing deadlines.

A commercial registered agent is available in most states. This is a person or entity that registers with the state to act as a registered agent for entities for a nominal fee. Spaulding Law is a commercial registered agent and offers these services to our clients. Most states keep a list of the commercial registered agents that are registered to do business within their state.

It is important to note that a company that does not maintain an active registered agent may risk their “good standing” with the state in which they’re registered and may face fines.

This information is made available by Spaulding Law for educational purposes only and not to provide legal advice. By using this website, you understand that there is no attorney-client relationship between you and Spaulding Law, unless you have entered into a separate representation agreement. This information should not be used as a substitute for competent legal advice from a licensed professional attorney.

Driving Directions from I-15:
• Take the Pleasant Grove exit 275 from I-15
• Turn North onto Pleasant Grove Blvd
• Turn left onto W. Grove Pkwy
• Quickly turn left into the Synergy/Spaulding Law parking lot.