What If You Cant Get Registered Agent Served

I 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 company who can accept mail and of import legal notifications from the government, besides as from anyone who tries to sue your LLC. The registered amanuensis must be someone physically in the land with a physical accost—non a mail service office box—who can receive mail 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 outset trouble you will face is that you won't fifty-fifty be able to register your LLC with the state to get it started. Naming a registered agent is a requirement on the form yous must file, and the country won't accept information technology without a named registered amanuensis.

If y'all practice proper noun a registered agent, but 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office, such as an employee who leaves the company or a registered amanuensis company that has gone out of business or no longer represents you, you confront fiscal consequences.

Cynthia Flynn of Hackler Flynn & Associates, 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 Secretary of State when the registered agent leaves the company if they're an employee, and designate someone else to accept his/her identify."

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 agent, or one who is available, this means that your LLC misses out on legal notices virtually things y'all demand to know, such as notifications from the IRS or your state tax department.

In that location are even bigger concerns to consider, though. Flynn says, "If yous do non accept a registered amanuensis to receive litigation documents, including a complaint, a process server (the person who delivers court documents and notices of lawsuits) may try to serve your LLC through the Secretary of Land. If this continues to be unsuccessful, the court instance can continue without your knowledge. Often, the case will lead to a default judgment confronting the LLC."

If this happens, you lot wouldn't have a adventure to defend yourself at all in a lawsuit considering you didn't even know almost it.

Going Without a Registered Agent Could End Your Business

Declining to maintain a registered amanuensis tin can ultimately pb to your business existence completely shut down. The state can suspend your permission to conduct business and remove it from practiced standing. This may mean your business organisation:

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

Flynn warns that, additionally, "Once a business loses its skilful continuing status, it risks losing the correct to use its name in the state. Equally a consequence, other companies may exist able to acquire the rights to its proper name." So fifty-fifty if you do take corrective measures and refile, your business proper name may be gone.

Once your LLC has been dissolved, if y'all continue to do business, you and so become personally at risk. Rajeh A. Saadeh of The Police Office of Rajeh A. Saadeh, L.Fifty.C. in Somerville, New Jersey, explains, "If business is conducted all the same, so personal liability can follow to the members as in that location is no valid LLC shield."

Ensuring that y'all name a registered agent who is available and will do their job will protect your LLC from difficulties.