The Registered Agent and His Crucial Role in LLCs
Just like other business entities that require crucial organizational working positions to operate, a limited liability company in this State also has this prerequisite that must strictly be complied with: the employment of a registered agent. Who is a registered agent and why is he considered a necessity in LLCs?
It is needed starting from the formation of the business. Basically, registered agents are an LLC’s representative in matters between the company and the state. The updates, documents, and important matters shall be conveyed to such agent by the office of the Secretary of the State. Furthermore, this agent also acts as an organizer for the compliance with state requirements and their deadlines, such as in the case of the filing of an annual report.
The most important role that he actually plays is being the legal representative of the LLC. He not only assures the legitimacy of the business but also acts as the company’s counsel in case of legal disputes.
To be qualified as a registered agent for an LLC, it is necessary that the individual is a resident of the state or if it is an entity, that such shall have been authorized by the state to operate its business. Failure to observe these necessities will render one ineligible for the position.
The information regarding the registered agent of an LLC is included in the filing of the Articles of Organization. Together with his name, the address shall also be indicated in this document. A post office box address or private rented mailboxes are not allowed, a physical address is sternly required. The reason behind this is that the address is considered to be public information and should be easily accessible. Also, it is strictly expected that this agent be present in this address during business hours in case of an important document delivery. In legal disputes, the mere delivery of a notice or letter by an authorized courier to the registered agent’s office address is sufficient legal proof that the LLC has been notified.
Although it has been established that the role this agent plays is crucial, his designation is not at all irrevocable. The State rules admit cases wherein the situation calls for a change of a registered agent. This change can easily be done by filing a form with the Secretary of State and paying the necessary fees.
Having registered agents is a requirement to the formation of limited liability companies. This can easily be complied with because of the numerous options an LLC owner has when he taps different organizations that provide such assistance. However, it is still encouraged that one employs an already trusted agent to do this job.