Do I Have To Serve As the Registered Agent of My Company?
Regardless of the state that a company is filed in, the state is going to require someone to serve as the registered agent for the company. Choosing a registered agent is an important decision, but it isn’t a job that you have to take over yourself. While some people allow their attorney to serve as a registered agent, others choose to take a more commercial approach.
A registered agent is an individual or entity responsible for receiving services of process when a business entity is a party to a legal action such as a lawsuit. The registered agent is also typically the recipient of any correspondence to the business on behalf of the respective Secretary of State. For example, Illinois registered agents receive a yearly notice when it is time for a company to file their annual report. It is the duty of the registered agent to provide notice of any correspondence received to the proper parties, whether that is a director, shareholder, or other contact person.
Sometimes, a member or director of a company will also serve as the registered agent. This is perfectly legal in all states as long as the individual resides in the state that the company is incorporated in. For example, Sarah’s Socks, Inc. is incorporated in Illinois. Therefore, the registered agent for the company must have a physical address within the state. The same residency requirement also apply to commercial entities serving as a registered agent. Some companies such as Incorp or CSC Global provide a registered agent service in which the registered agent is an entity instead of an individual. However, be advised that these services often cost monthly or yearly. Finally, sometimes attorneys will serve as a company’s registered agent. This is often effective if the company is served with a legal complaint because the attorney is ultimately the one that will receive the complaint.
If you have any other questions about a registered agent service or any other business planning aspects, the professionals at The Center for Financial, Legal and Tax Planning are more than well-equipped to answer your questions. Please contact us at (618) 997-3436.