A registered agent is the appointed party of a business responsible for receiving legal notices, (through traditional service of process or other forms of due process). Here is an example of what can happen when a small business fails to register and maintain a registered agent with the state authorities.

Say you own a pizza shop in your locale. Last month a fantastic offer arose to sell the pizza shop to a new owner. This month the deal has closed, profit is a pretty penny and now there are plans to retire with the family. But wait, someone fell in the parking lot during the first week after new ownership took over. They are suing and the new owner did not register himself as the new agent on record with the State.

You've been served a complaint and summons that you are being sued personally along with the pizza shop for failing to maintain the parking lot and causing injury to someone.

And, the process server delivered it during your retirement party . . . which means that now all your family and friends are aware that something legal is taking place.

What's in store? Think about it . . . a response to the complaint is in order and while you have documentation showing proof that you were not the owner of the shop at the time and thus not the registered agent, you will still spend time and money to handle the situation. Your pretty penny is now dwindling due to unexpected legal fees.

Keeping proper record with the State at all times is just another form of protection for your small business or entrepreneurship. So forgetting to properly maintain a registered agent can come back to bite you in the rear!

 ? Back to Top