What You Need to Know About Registered Agents

Whether you are a corporation, a limited liability company, or operating as a professional corporation in Georgia, you should be aware that the Secretary of State requires all businesses to have a registered agent. If your business fails to properly comply with the requirements, you may be subject to fines, your company may be dissolved, and your business could miss important legal notices which could lead to default judgments (meaning your business could lose a case simply because your business did not receive actual notice and did not respond in a timely manner).

What is a registered agent?

A registered agent is the person or company designated to accept service of process, legal communications, and other official documents on behalf of your business. Your registered agent can be located anywhere in the state of Georgia. The registered agent can be an owner or an employee of the company or it can be a third party. Typically, if a business uses a third party registered agent, it is the business' lawyers or a corporate service company.

What are the benefits of having a third party as your registered agent?

Using a third party, such as an attorney or law firm, as your registered agent provides an additional layer of protection for your business. Below are a few of the many benefits:

• Being served. Your third party registered agent would be served on your business' behalf and receive your business' legal notices. This way, your business can avoid the embarrassment of being served in front of employees and customers, avoid the risk that an employee is served who fails to give the information to management, and avoid disrupting the general work environment.

• A separate address. If you operate your business from home, have inconsistent business hours, operate a virtual business, or use a virtual office, having a separate address for your registered agent means more flexibility and privacy. For example, every business is required to have a registered agent with a physical address. If your business uses a post office box or a mail drop service, such as a United Parcel Services (UPS) mail box, as your business address then you can maintain your privacy by using a third party registered agent. It also gives you the freedom to be away from the business because there is a designated registered agent who can sign and accept notices on behalf of your business even if your business is closed for the day or does not have a physical location.

• Keep track of deadlines. Most third party registered agents, especially law firms, have systems in place to keep track of required deadlines. This can help your business avoid the penalties that are associated with the late filing of mandatory annual government filings. It can also help your business avoid missing important court deadlines, which can cause litigation costs to dramatically increase and potentially lead to default judgments. 

• Moving your business. If your business moves or plans to move and your business has retained a third party registered agent, you do not have to worry about missing any important communications because your registered agent's contact information would stay the same. And you do not have to worry about fines or the loss of your business' corporate status for failure to maintain a registered agent. 

Simmons Rogers, LLC offers registered agent services to both existing businesses and those in need of assistance with formation. If you are thinking about starting a business, or if you want to change your Georgia registered agent, feel free to contact us at info@simmonsrogerslaw.com. 

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