Excerpt: Every entity is required to have a Statutory Agent in each state where they are registered. So, what exactly is a Statutory Agent, and what do they do? 1-minute read
What is a Statutory Agent?
When forming your entity, the state licensing organization of that state (for some states, it is the Secretary of State; for others, such as Arizona, it is the Corporation Commission) requires a Statutory Agent to be designated. In a nutshell, the role of a Statutory Agent is really for the licensing organization to be able to find you. If your business is sued, your Statutory Agent will be served. The Statutory Agent needs to have a local address in the state you are registering for.
Can I Serve as my own Statutory Agent?
Yes, you can, but make sure you are not listing your home address on the paperwork, as that is visible to the public.
Can I Appoint a Third-Party as a Statutory Agent?
There are many third-party companies that you can pay a nominal annual fee to serve as your Statutory Agent. This is a great option when your business doesn’t have a physical presence in a particular state.
What Other Reasons are there to Appoint a Third-Party Statutory Agent?
There are a number of reasons why I advise my clients to go with a third-party. Here are a few good ones.
- If you have a brick-and-mortar location, do you really want to be served in front of your customers?
- For privacy. You have to list a physical address for the Statutory Agent.
- If you are a virtual business, you do not want to list your home address.
Contact Flourish Today
If you are setting up a new business and need help answering questions like these, and others – Flourish can help. As an experienced business consultant, I’ve spent years helping business owners launch and grow their businesses. To schedule a complimentary consultation with me, email Info@FlourishBiz.Consulting, call 480-980-6066, or use the contact form.