Do Un Employees Have To Register As Forign Agents

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

A registered agent is a person or visitor who tin take mail and important legal notifications from the regime, also as from anyone who tries to sue your LLC. The registered agent must be someone physically in the state with a physical address—not a post office box—who can receive mail service and personal service.

What Is the Penalty for Not Having a Registered Agent

What Is The Penalty for Not Having a Registered Agent?

If your LLC fails to designate a registered agent, the first problem y'all volition face is that you won't even be able to register your LLC with the state to get it started. Naming a registered agent is a requirement on the form you lot must file, and the land won't accept it without a named registered agent.

If you do name a registered amanuensis, but that person no longer fills the role, such as an employee who leaves the company or a registered agent company that has gone out of business or no longer represents yous, yous face financial consequences.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 state of affairs, "It is essential to notify the Secretarial assistant of Country when the registered agent leaves the company if they're an employee, and designate someone else to have his/her place."

The Legal Implications of Operating Without a Registered Agent?

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

There are fifty-fifty bigger concerns to consider, though. Flynn says, "If you lot practice not have a registered agent to receive litigation documents, including a complaint, a process server (the person who delivers court documents and notices of lawsuits) may endeavor to serve your LLC through the Secretarial assistant of State. If this continues to exist unsuccessful, the court example can proceed without your noesis. Often, the example will pb to a default judgment against the LLC."

If this happens, y'all wouldn't have a chance to defend yourself at all in a lawsuit because you 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 organization being completely shut down. The state can suspend your permission to conduct concern and remove it from good standing. This may mean your business:

can't expand into more states
is blocked from file lawsuits
won't get the financing you need to aggrandize

Flynn warns that, additionally, "One time a business loses its skillful standing condition, it risks losing the right to use its proper name in the country. As a result, other companies may be able to learn the rights to its name." So even if y'all do accept cosmetic measures and refile, your business concern proper name may be gone.

Once your LLC has been dissolved, if you continue to do business, y'all then go personally at risk. Rajeh A. Saadeh of The Law Office of Rajeh A. Saadeh, L.Fifty.C. in Somerville, New Bailiwick of jersey, explains, "If business concern is conducted all the same, and then personal liability can follow to the members every bit in that location is no valid LLC shield."

Ensuring that you name a registered amanuensis who is available and will exercise their job will protect your LLC from difficulties.