Having a registered agent will ensure that your business will never miss important paperwork. Let's take a look at how a registered agent can help you keep your business organized.
updated December 4, 2023 · 4min read
A "registered agent" (or RA) will need to be designated with the Commonwealth of Virginia State Corporation Commission (SCC) if you organize or register your business in Virginia. This is a person or entity that your business designates to receive official legal documents in the event your business is sued, or its documents are subpoenaed.
An RA is required by law for every business entity (corporation, LLC, LLP, etc.) that is either created in Virginia (a domestic entity) or is created in another state and conducts business in Virginia (a foreign entity).
When you register your business entity with the SCC, you will need to provide the registered agent's name, registered address, and name of the county or independent city where the RA is located.
If an entity fails to comply with Virginia's RA requirements, or if the RA cannot be served, service can be made on the clerk of the SCC.
Although the Virginia Corporation Code states that the "sole duty of the registered agent is to forward to the corporation at its last known address any process, notice or demand that is served on the registered agent," the following duties are implied as well:
A registered agent can be:
Specific to LLCs: If a member or manager of an LLC is a corporation, a partnership, a trust, or another LLC, then an owner or manager of that entity may serve as the RA. Also, the RA for an LLC can be an "officer" of the LLC, which means any employee of the LLC designated by the company in writing as a person who can be served.
Whether you select an owner or employee of your business as an "in-house" RA or hire an outside RA, it is important to be able to rely on your RA to promptly notify you if important legal papers are received.
You, a co-owner, or a manager (as described above) can serve as an in-house RA. You save the cost of an outside agent (about $50 to $500 per year), and you will immediately know of the receipt of any legal document. Disadvantages may include:
An outside RA will need to be hired if:
Even if not required, advantages to hiring an outside RA include:
A business entity can change registered agents, or the RA can change the registered address, by filing a Statement of Change of Registered Agent and/or Registered Office form with the SCC. There is no fee for this, and it can be done online. A registered agent can resign by filing a form with the SCC, in which case the business entity must then designate a new RA.
by Edward A. Haman, Esq.
Edward A. Haman is a freelance writer, who is the author of numerous self-help legal books. He has practiced law in H...
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