Statutory Agent Service

What is a Statutory Agent?

If you’re looking to form a business entity, such as an LLC or a corporation, you need to designate a registered agent to receive notices of lawsuits and government documents on behalf of your business. States use different terms for “registered agent,” but they all refer to the same thing. One such term is “statutory agent.”

The states that use the local term “statutory agent” include the following:

• Arizona
• Ohio
• Connecticut^*

*Term used before 2017. Currently, the state uses “registered agent.”

The Role of a Statutory Agent

A statutory agent is required in each state where an entity registers to do business. While state requirements vary, some businesses cannot serve as their own agent to accept legal papers. Instead, the business needs to appoint an individual or a separate company to serve as the agent.

Entities must appoint a registered agent in every state where they plan to operate. The statutory agent must maintain a physical address where notices can be received. Examples of papers sent to that physical address include court papers for service of process, tax notices, and business registration renewals.

While you can designate an individual to serve as your statutory agent, a registered agent service company offers additional privacy and reliability. Businesses registering in new states often appoint a registered agent service company whose local offices meet the physical address requirement.

What Happens If You Don’t Have a Statutory Agent?

If you fail to assign a statutory agent and notify the secretary of state, you could face serious legal problems. For starters, you won’t be able to register your business with the state, as naming a registered agent is a requirement on the filing form.

Businesses that fail to update their statutory agent information in the event of changes are likely to be served to appear in court, but may not find out about it because of their lack of a registered agent address. If that happens, a default judgment could result in a loss of standing with the secretary of state and legal business status.

We want to help your business thrive. If you’re in the process of registering your own business and are looking to learn more about appointing a statutory agent, Harbor Compliance can help.