LLC makes its individuals a registered agent for them to receive process service, important communications concerning business and important documentation. Every registered agent must belong to an LLC or corporation and be known his state of formation in each state where he is registered for the purpose of doing business. It is highly detrimental not to have appointed or maintain a registered agent to the LLC or corporation, and may even affect its owners.

What is service of process?

When there is a lawsuit against the LLC or corporation, this is the term that applies to such an event. Generally, it is a service that the defendant by means of a citation. But in the case of an LLC or corporation, the defendant registered agent is notified by summons. By serving the process on the registered agent, the court obtains jurisdiction over the corporation or LLC.

In addition to receiving service of process in connection with a lawsuit against the LLC or corporation directly, the registered agent receives other mission-critical documents, such as:

  • Notice of garnishment proceedings against an employee
  • Litigation documents once the lawsuit is underway, including motions or requests to produce documents
  • Legal notices
  • Government correspondence, such as notices of annual report deadlines and tax notification
  • Other compliance-related documents

Although these documents might be very different, they all have one common element. Each one contains vital, time-sensitive information.

What happens if you don’t designate a registered agent?

The state will not approve your Articles of Organization if you have not designated a registered agent to your LLC or incorporated. This requirement applies when registering business in foreign states through the Certificate of Registration. You must maintain a registered agent in each state where you have registered to establish business and also in your home state. All states require the entity to file a registered agent form change each time the agent changes.

If you don’t maintain registered agent, your company is at risk in four ways.

  • You may not receive critical information that you need. .
  • Your company risks its good standing with the state. .
  • Your business (and you personally) may be hit with fines and penalties for noncompliance.
  • The state can administratively dissolve your entity.

Why should you choose a professional registered agent?

It is very easy to serve as a registered agent: A registered agent must be a resident of the state. Entities that are formed within the state that has council members or officers should appoint one of these individuals as a registered agent. But it could also be that the lawyer of the entity is the registered agent. It sounds very attractive but these are not the best options.

It is often a better strategy to choose a professional registered agent service. Why? Because it is essential that the registered agent always be ready, willing and able to perform two critical functions mentioned earlier:}

  • Receive important state and legal documents
  • Relay these documents to the appropriate party quickly and effectively

With a professional Registered Agent, you can be confident that there will be someone at the registered address during all standard business hours and available to be served a legal notice.

If you require information about this service, Gerli & Company provides you confidentiality and professionalism in all its transactions. Just contact us, our qualified team will attend your request.