Are you forming a business and trying to decide who or what entity you're going to name as a resident agent? I'm going to give you a few tips as to how you should make that decision.
So first, what is a resident agent? The resident agent that you put forth on your articles of incorporation or articles of organization is a person or a company that resides in the state where your entity is being registered. The sole purpose for that person or entity is to be there to receive important documents like tax notices, subpoenas and summonses, so it's important that you use somebody that you know is going to be available to receive that mail and make sure you get it.
You can use a person; you can use yourself. If you're a solo practitioner or a small business, you might just want to use yourself and your home address. Some people don't want their personal name and their home address listed on the state website, and in that case, I usually suggest that you use a corporate resident agent. That's a corporation that has a location in the state in which your entity is registered. The great thing about using a corporate resident agent is that when they receive a document, they have people at the location who will immediately scan it and make sure you get it. There is a cost involved in using a corporate resident agent. It's usually around $100 a year, but I think it's well worth it. The most important thing is to make sure that you have a person or corporation that is going to be available to receive important documents and get them to you as soon as possible after they're sent.
KATHERINE L. TAYLOR, ATTORNEY AND CPA
5850 Waterloo Rd
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