Can You Get In Trouble For Being A Registered Agent

One of the requirements for setting up an LLC is designating a registered agent. Not doing so tin bring serious consequences.

A registered amanuensis is a person or visitor who can accept mail and important legal notifications from the regime, also as from anyone who tries to sue your LLC. The registered agent must exist someone physically in the land with a physical accost—not a mail service function box—who can receive mail and personal service.

What Is the Penalty for Not Having a Registered Agent

What Is The Penalty for Non Having a Registered Agent?

If your LLC fails to designate a registered agent, the commencement trouble you will face is that you won't even be able to register your LLC with the state to become it started. Naming a registered amanuensis is a requirement on the form you lot must file, and the country won't accept it without a named registered agent.

If yous do name a registered agent, only that person no longer fills the office, such as an employee who leaves the company or a registered amanuensis company that has gone out of business or no longer represents you, yous face financial consequences.

Cynthia Flynn of Hackler Flynn & Assembly, APC in Pasadena, California, warns, "States impose fines and penalties on companies that don't comply with the LLC requirements."

John R. O'Brien PC in Washington, D.C., points out that to avoid this kind of situation, "It is essential to notify the Secretarial assistant of State when the registered agent leaves the visitor if they're an employee, and designate someone else to take his/her place."

The Legal Implications of Operating Without a Registered Amanuensis?

Because the registered agent accepts of import notifications on behalf of your LLC, if you lot don't have a registered amanuensis, or 1 who is available, this means that your LLC misses out on legal notices about things you lot demand to know, such as notifications from the IRS or your state tax department.

There are even bigger concerns to consider, though. Flynn says, "If you do not have a registered agent to receive litigation documents, including a complaint, a procedure server (the person who delivers courtroom documents and notices of lawsuits) may try to serve your LLC through the Secretary of State. If this continues to exist unsuccessful, the courtroom instance can proceed without your knowledge. Oftentimes, the case will lead to a default judgment against the LLC."

If this happens, yous wouldn't take a take a chance to defend yourself at all in a lawsuit because you lot didn't even know about information technology.

Going Without a Registered Agent Could End Your Business

Failing to maintain a registered agent can ultimately atomic number 82 to your business existence completely shut down. The state tin can suspend your permission to behave business organization and remove it from good standing. This may mean your business:

tin't expand into more states
is blocked from file lawsuits
won't get the financing y'all need to expand

Flynn warns that, additionally, "In one case a business concern loses its good standing status, it risks losing the correct to use its proper noun in the state. As a event, other companies may be able to acquire the rights to its name." And then even if you lot practise take corrective measures and refile, your business proper name may be gone.

Once your LLC has been dissolved, if you go along to do business, you lot so become personally at chance. Rajeh A. Saadeh of The Police force Part of Rajeh A. Saadeh, L.Fifty.C. in Somerville, New Jersey, explains, "If business is conducted notwithstanding, so personal liability can follow to the members as there is no valid LLC shield."

Ensuring that you name a registered agent who is bachelor and volition exercise their job volition protect your LLC from difficulties.