Every business in Arizona is required to appoint a registered agent to review legal documents on behalf of the business.
As a state requirement, it’s important that you know what the purpose of a registered agent is and what it takes to be a registered agent.
In this article, you’ll find more information about registered agents and what happens if your business doesn’t have one.
A registered agent is the official contact of your business who will receive legal documents and notices on behalf of your business. This is a . third party individual or entity located in the same state of the business, and you must have one in every state in which you operate.
Aside from receiving legal documents on behalf of the business, the primary purpose of assigning a registered agent is to ensure your business maintains corporate compliance by informing you of important information regarding lawsuits, tax payments, and sending annual report filing reminders.
As the gatekeeper for business entities, a registered agent must be available during normal operating business hours, Monday through Friday 9 a.m. to 5 p.m. Whether you operate a larger corporation or a small start-up business, a registered agent is required to receive these documents and notices on behalf of your business:
In the state of Arizona, your business is required to have a registered agent because it gives the courts official records that your business received important documents. A registered agent plays a vital role in how the court systems work in Arizona.
While having a registered agent is beneficial to the court system, it’s also beneficial to you and your business.
Reasons to hire a registered agent:
Hiring a . third party registered agent has many undeniable benefits. So, how do you choose a registered agent?
Aside from having a physical office in the state of your business, it’s also advised to choose an individual or entity that offers thorough coverage and a reliable team to answer all your questions.
Additionally, you want a registered agent to offer compliance management services. This means reminders for filing an annual report and other important documents. Additionally, look for document management services to ensure you can access official legal documents from an online account.
In Arizona, an LLC or corporation cannot be its own registered agent. However, the owner can be a registered agent – it’s not just recommended. Being your own registered agent takes away benefits such as flexibility and privacy. Note that the registered agent must also have a physical address in Arizona; a P.O. box is not acceptable.
The consequences of not having a registered agent are severe. Not only is it required by law to have a registered agent, but not having one to accept legal documents could result in a default judgement against your business. This means you may not even know that a lawsuit is against your business and will not have representation in court.
Not having a registered agent could also result in missing important notifications from the Arizona Department of Revenue or the IRS. This can lead to major legal issues and financial consequences.
Additionally, by not appointing a registered agent as a new business, the Arizona Corporation Commission will deny your formation documents. Finally, without an active registered agent, your business could lose its certificate of good standing and face fines. Losing your good standing means your business cannot file lawsuits, provide liability protection, own rights to its name, and more. Your business also faces the risk of being dissolved.
As a business owner, you have the right to choose any individual or entity to be your registered agent. However, it’s beneficial to have a business lawyer as the designated individual to accept legal documents on your behalf.
Having an experienced and qualified business lawyer as your business's registered agent will not only give you peace of mind, but also ensure your business stays in good legal standing. A lawyer will receive notices and let you know in a timely and prompt manner if your business has been served. Additionally, a lawyer can immediately review the notices and provide legal advice on the situation.
A business lawyer can also help separate your personal assets from business liabilities and debts. Having this protection comes with statutory requirements such as filing annual reports.
With an experienced business lawyer serving as your business's registered agent, you’ll receive the legal advice you need to maintain your good standing status and protect your personal assets.