Do you sometimes believe that your registered agent can do more and provide you with better service? Perhaps they’ve been unreachable at times unreliable over time, or just not attending to your needs. It can be quite unsettling particularly when the growth of the organization relies on efficient processes of marketing and legal requirements. Well, if yes, then it is probably time to make changes.
Transferring your registered agent may sound like a complicated task for most people. In truth, it may be easy, and the process helps your company well. A change of registered agent should ensure sufficient focus and support with quick response time and appropriate services that concur with your business objectives.
In this step-by-step guide, you will learn how to change a registered agent so that your business operations are minimally affected. Let’s dive in!
Understanding the Role of a Registered Agent
A registered agent is a professional business that is authentic and efficient and whose primary business is to collect legal papers, notices, and mail directed to other businesses. This is an important aspect of avoiding potential legal problems for the business as it helps to ensure that the company remains updated regarding any legal actions or obligations directed towards them.
A registered agent in good standing presides over the contact matters of receipt of lawsuits or other legal notices and ensures the efficient movement of information between your enterprise and the government.
Their services enable the business to be alerted on precise issues that require attention or action such as when tax or other agencies may require filing returns, the end of the period for meeting regulatory requirements, or undergoing an activity that is legally required causing ineffective communication which could lead to legal problems and fines over time.
With an independent registered agent, firms are free to go about their business purely and ensure they are within the law.
Reasons to Change a Registered Agent
Unresponsiveness
When your present registered agent is constantly unresponsive, whether to inquiries petitions, or legal documents, it can create serious problems for your organization. Such deadlines in legal issues may end up attracting sanctions, fines, or even good standing may be lost. Having an agent is important to help you meet the various cutoff dates in various state requirements.
Incompetence
The absence of a registered agent’s experience and knowledge of several legal aspects may also put your business at risk. This means not only knowing how statutory laws differ from one State to another but also understanding legal contracts and pleadings among other responsibilities. An incompetent agent can also mess up essential communications and this may have grave implications for the affairs of the business
Location Changes
When it comes to relocating the business to another state, it is necessary to have someone who acts as a registered agent in that particular state. Different states have their laws regarding registered agents and the focus of registered agents understanding those local laws may serve to enhance business processes policies and regulations at the state level.
Cost
I would propose, however, that regardless of this concern; it would be unwise to remain with a registered agent because of their prior history. Others might overcharge for the cost of service and if they are stuck with their agents this could greatly impact their operating costs. By taking such little effort in cost comparison for hiring Registered Agents, it is not uncommon to get better and lower costs for the same services that your business has needed all along.
Privacy Concerns
If you believe that there is a need for some level of privacy in this decision and the outcome, it would be appropriate to select a registered agent whose physical address will not reveal your personal or business information. This is especially relevant for proprietorships or individuals who work from home and wish to safeguard their home addresses. It is helpful that a reliable registered agent can act as a shield for your privacy even as all the documents that require submission are collected and filed properly.
Requirements to Change a Registered Agent
There do not exist commonly accepted defenses for changing a reliable agent in most kinds of Corporations. Most business entities such as LLCs, corporations, and partnerships will change their registered agent and a new one will be appointed under the following conditions:
Legal Entity Status: An organization has to be incorporated and must be active with the appropriate authorities.
New Agent’s Consent: This newly appointed agent must accept being appointed in this manner. A consent form or declaration and some other documents may be necessary.
State Requirements: Each state has a different process when it comes to relocating the registered office. Filing a proper form, making a payment, and submitting details are a few examples.
Additional Considerations:
In-State Residency: Some states do not only require that the registered agent be appointed by someone living in that state, but that the registered agent have a physical place of business within the state as well.
Availability: The availability of the appointed process serving agent is important, as he must be present within the weekdays to receive legal notifications and documents.
Professional Qualifications: Some businesses will consider the experience and professional qualifications of the registered agent although it may not be a requirement.
Steps to Change a Registered Agent
Select Another Registered Agent
First, search and choose a registered agent who will fulfill the requirements of your state. This may be a licensed agency providing registered services in this area, or an individual based in your state who will accept the role. Verify that the new agent practices at all of the appropriate times when service of process can be received, where the agent resides, and where they have a fixed address.
Get Required Forms
To download the “Statement of Change of Registered Agent” or appropriate forms, visit the relevant Secretary of State link. Some states have their particular forms or have not been issued thus it is important to confirm the correct one is being used.
Fill Out The Form
Make sure you fill that form with all the necessary and the most updated information concerning your business including its name and address and also the name and address of the outgoing and the incoming registered agent. Be sure to go through the form again carefully and look for mistakes to avoid unnecessary delays in processing.
Complete and Submit the Form
When you are done with the regular census form, you may submit this form and achieve all necessary payments at the office of your state’s Secretary of State. Make sure also that there are such alternatives as online filing, by mail, or even personal filing depending on what your state allows. When using the mail to file the return, it is advisable to send in the return through a trackable means to make certain that the return reaches those who are meant to receive it.
Inform Your Previous Registered Agent of the Change
Once you are done with all the paperwork that was necessary for completion, you should quickly update your previous registered agent about the change. This ensures that they are informed of the change, and enables them to make provisions concerning any matters that remain to be resolved before that change takes place.
Check the Change Confirmation
After you have filed for the change, and once your state has recorded the change, you should be provided with a recognition of the details of the registered agent. Keep in mind that you are required to keep that document since it is much more than a mere piece of paper since it proves that the adjustment has been appropriately made in the documents. Where acknowledgment is not received however within a reasonable period, the office of the Secretary of State should be contacted for the necessary follow-up on the status of the filing.
Costs of Changing a Registered Agent
The process of changing a registered agent constitutes two essential components in the cost and they include:
State Filing Fee: This is the regulatory fee charged by the state in which your business complies with its law. The amount varies depending on the state and can range from $0 to $50 or more.
Registered Agent Service Fee: This applies mostly in the registered agent services whereby they charge a fee to change the agent for granted. The amount of the fee, however, will depend on whose service is rendering it.
Additional Considerations:
Expedited Filing: You will be required to pay some nominal fees if you wish the process to take a shorter time than this one.
State-Specific Requirements: Some states may require a more specific fee amount depending on the type of registered agent change, you should therefore seek to know what the law in your state provides.
Example:
State Filing Fee: $25
Registered Agent Service Fee: $50
Total Cost: $75
It is best to check with the Secretary of State’s office or registered agent service provider to seek the information that will be most relevant and current to the expenses involved in the process of changing a registered agent in your case.
Frequently Asked Questions (FAQs)
Why must I appoint a registered agent?
A registered agent is one person, or entity, who is appointed to serve documents of this kind on behalf of your business. Registered agents make sure that the business is in good status with the appropriate authorities.
Is it possible to change a registered agent without the assistance of someone else?
Yes, changing your registered agent without professional help can be done in most cases, however, certain conditions apply. It’s very crucial to adhere to your local laws do what is expected by the authorities and file the right documents.
Which online orders will allow me to change my registered agent?
There are some online services like Easyfiling, and others such as ZenBusiness, and LegalZoom that can be used to assist patients in relocating their registered agents that is, if they have any.
Am I allowed to appoint a family member or friend in the capacity of a registered agent?
Such individuals may however need to be registered as registered agents however this may be acceptable if it is not against the law.
Nabin Adhikari
