Frequently Asked Questions

What are the consequences of not designating a registered agent for my business?

Not designating a registered agent for your business can have serious consequences. The state where you registered your business needs to know they can contact someone on your behalf within the state at all times. If you don't have a registered agent, the state may see your business as not in "good standing." This could lead to potential penalties such as fines, lack of ability to enter legal contracts, license removal, and lack of access to court systems. Moreover, without a registered agent, you might not be aware of important legal actions against your business. For instance, if you're being sued and you don't have a registered agent to receive the service of process, you might not know about the lawsuit. This could lead to a default judgment being issued against you. Additionally, a registered agent plays a crucial role in managing your business operations. They accept tax and legal documents on your behalf, provide reminders of important due dates for reports and tax returns, and can help you find state-specific accounts and legal professionals. They also back up documents, which can be crucial in case of theft, loss, or natural disaster.