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What is a Registered Agent? |
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Definition and description of a registered
agent. |
You may have heard the term registered agent and thought, what
is a registered agent? Or perhaps you've heard the verbiage
statutory agent. In either case a registered agent and a
statutory agent are the designated party for whom service of
process is instituted in the event of legal action against a
business. The address of the registered agent is the one on
record for the business entity.
Let's reiterate, for businesses, service of process is
accomplished through a company’s registered or statutory agent.
This agent will receive all legal notices through due process.
The process server will seek out the proper party. Once the
proper authority i.e. statutory agent is located, personal
delivery of complaints and summons will ensue or if allowable
by law, the documentation will be mailed (usually via certified
registered mail).
The failure of a business entity to designate a proper
registered agent may result in missed a court filing, hearing,
or other important legal information. It's not smart to let a
business fall through the cracks, so having a reliable
registered agent (if the business owner or other executive does
not take on this role) can be vital.
Without maintaining a registered agent, a company may need to
spend unexpected finances on legal fees that would have never
been required had the appropriate statutory agent been
registered and available for service of process. Needless to
say, not having a registered agent (who has a local physical
address and is available during normal business hours) can
literally make or break a business.
As with a statutory agent, not having a registered agent can
result in a business' legal status being revoked, because it is
no longer considered in "good standing."
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