Can My Attorney Be My Registered Agent

State law requires businesses to designate a Registered Agent or Statutory Agent to receive service of process and federal/land documents. Many corporate police force practices offer business formations and other corporate legal services, also provide registered agent services by acting as their clients' registered amanuensis. When law firms elect to deed as the registered agent for their clients, many times they practice so without taking additional considerations. Firms rarely accuse for this service, rarely check with their malpractice insurance about coverage, and rarely sympathize the full breadth of their responsibility.

Firms sympathise the duty of the Registered Agent is to ensure all necessary documents are forwarded in a timely mode, nevertheless, what happens when the firm moves, the client is no longer a client, or the chaser who is listed as the registered agent is no longer with the firm? What happens when a service of process is delivered to the mailroom and the clerk doesn't empathise the urgency? How about when a service of procedure is put on an attorney's desk and that attorney is out of the role for an extended fourth dimension?

Whether your house is managing registered agent service for many or a scattering of clients, the responsibilities that come with being a registered agent can be fourth dimension consuming and costly without the right resources. Here'due south what yous should consider when offering registered agent services.

ADDRESS CHANGES MUST BE FILED

As firms grow or equally leases come many law firms move to increase infinite or to aid reduce costs. States require business entities to go on data regarding their registered agent upward to engagement. Irresolute the address for a registered agent requires a formal state filing and often a fee paid to the state. In every case I've heard, the client expects the firm to update the Secretary of Country and to pay for any state fees associated with the filing. That's tough to swallow particularly if you aren't charging for the service in the commencement place or when some of these entities are no longer clients. Failure to update your address with the state, could upshot in a service of process not being received. Without diligent, organized record keeping, and quick filings with the state, your clients could face a default sentence confronting their concern entity for failure to respond to the procedure.

MANAGING ENTITY COMPLIANCE IS A Big UNDERTAKING

In a recent survey, corporate legal professionals identified their top concerns, and 74 percent of respondents stated that "regulatory and governmental changes" are critical issues. Information technology can be difficult to keep up with regulatory requirements and compliance deadlines in all states and jurisdictions where a company does business. If a business entity fails to file required paperwork, information technology volition exist subject field to penalties, fines and could lose its good standing with the state and a company that isn't in skilful standing with the country has additional exposure.

SERVICE OF PROCESS MANAGEMENT

If you're handling Registered Agent services internally, yous are likely dedicating an private'southward fourth dimension and resources to distributing service of procedure paperwork and documents to your clients. Ofttimes, this person is either unqualified to handle this task or extremely overqualified, leading to lost revenue. What processes and technology are you lot utilizing to ensure you tin can prove service of process was delivered and received? The question I asked before well-nigh a mailroom clerk well-nigh not handling service of process with urgency was from a existent-life example. It only takes 1 mistake to create a costly endeavor for the firm.

INSURANCE COVERAGE

Default judgments against clients could event in a adjust against the law business firm if the entity claims it did non receive the SOP. Brand sure to cheque your Professional Liability Insurance policies because in nearly cases they either explicitly exclude coverage for registered agent activities or the language is vague. This tin atomic number 82 to malpractice insurers denying coverage involving registered agent services and therefore exposing you to gamble. Corporate attorneys help clients reduce take a chance wouldn't it be expected that yous limit your own too?

Law firms can avoid many of these risks by outsourcing registered amanuensis services to third party commercial providers whose core business organisation is to provide professional person registered amanuensis services. Await for a Commercial Registered Agent that utilizes applied science to manage service of process and state notifications. Await for a registered amanuensis that reduces your hazard simply not your visibility to your clients' of import legal documents. Past outsourcing to a engineering-driven Commercial Registered Agent service, police firms reduce risks, and gain back valuable time and resources without losing visibility. Steve Sowers

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