There are many legal implications of not complying with all regulations pertaining to the registration of corporations. Many limited liability corporations are caught pants down when told to comply with Registered Agent Services. As an LLC you the state requires an individual that can receive official correspondence on behalf of your corporation. It assures the state that they can reach you at any time during business hours.
This may sound like a simple thing to do. Actually, you can even add yourself as your own statutory representative. That would be an easy way out. You just have to use different addresses from the one you filed when registering your corporation. While it seems very tempting to be your own representative, you probably should not do it. Keep reading to learn more about how being your own representative is a bad idea.
It is not all the time that you will be in the state your business is operating. There are situations where you will want to expand your company to other states. If you still maintained your name as the statutory proxy, chances are your LLC registration may not even see light of day. It would be practically impossible to prove that you are a resident in each of those states.
There is another scenario about being the statutory proxy for your firm. Imagine when you are served with a lawsuit at your business premises. Chances are some if not all the employees and customers will be present. This will be the start of instability in the company. Your employees are likely to get worried about the future of the business. You can take time to explain the situation to restore calm and order.
Like it was indicated, many other factors still work against the idea of a company owner being a statutory proxy for his or her corporation. In the event you have to be served with a lawsuit, it will take place in your business premises. This will be probably before the employees and customers. Already, that comes as a serious problem to the stability of your business. You have to act quickly lest things get out of control.
While you can take pride in controlling the situation among your employees, you cannot control how your customers will think. In addition, you may not be in a position to control what they will do with such information. Once it gets in one of the social media sites or business forums that you are facing a lawsuit, the content might spread like bush fire.
Before submitting your details as the statutory proxy in your company, take some time to think on the implications it could have to your privacy. You probably do not wish it that your personal information gets out there. But with the information having been filed under public records for the business, the information will now be under public domain.
You do not want to be sifting through mail every often to separate grain from chaff. You have much more on your hands towards stabilizing the company. In essence, an outsourced statutory agent would be the best choice for your company.
This may sound like a simple thing to do. Actually, you can even add yourself as your own statutory representative. That would be an easy way out. You just have to use different addresses from the one you filed when registering your corporation. While it seems very tempting to be your own representative, you probably should not do it. Keep reading to learn more about how being your own representative is a bad idea.
It is not all the time that you will be in the state your business is operating. There are situations where you will want to expand your company to other states. If you still maintained your name as the statutory proxy, chances are your LLC registration may not even see light of day. It would be practically impossible to prove that you are a resident in each of those states.
There is another scenario about being the statutory proxy for your firm. Imagine when you are served with a lawsuit at your business premises. Chances are some if not all the employees and customers will be present. This will be the start of instability in the company. Your employees are likely to get worried about the future of the business. You can take time to explain the situation to restore calm and order.
Like it was indicated, many other factors still work against the idea of a company owner being a statutory proxy for his or her corporation. In the event you have to be served with a lawsuit, it will take place in your business premises. This will be probably before the employees and customers. Already, that comes as a serious problem to the stability of your business. You have to act quickly lest things get out of control.
While you can take pride in controlling the situation among your employees, you cannot control how your customers will think. In addition, you may not be in a position to control what they will do with such information. Once it gets in one of the social media sites or business forums that you are facing a lawsuit, the content might spread like bush fire.
Before submitting your details as the statutory proxy in your company, take some time to think on the implications it could have to your privacy. You probably do not wish it that your personal information gets out there. But with the information having been filed under public records for the business, the information will now be under public domain.
You do not want to be sifting through mail every often to separate grain from chaff. You have much more on your hands towards stabilizing the company. In essence, an outsourced statutory agent would be the best choice for your company.
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