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.
Many proprietors keep asking whether they could fill their names as the statutory proxy. Well, the answer to this, is that you can add yourself as the proxy for your LLC. There are not many restrictions on the person to fill in that capacity. Besides the owner, it could be an employee or a hired service. The truth, on the other hand, placing your name as the statutory representative may not be a perfect idea.
Imagine a scenario where you are expanding your company to a neighboring state. With your name as the statutory representative, it means you have to be a resident of that state. This is the basic requirement for anyone who wishes to fill that capacity. Chances are, it was never in your plans to relocate. This may force you to move into that area. If not, you may have to find another alternative but yourself.
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.
Apart from not being in a position to be present at all times, there are other dangers to being your own statutory proxy. Take a situation where you receive a lawsuit before your staff and clients. The impact of such a move can be devastating. Employees may lose morale thinking the company is about to be shut down or get under receivership.
Finding the best way to explain to your employees would be a good rule of thumb. They do not have to imagine the business is going under receivership, or about to be closed. For the customers, damage control will depend with how they will take in the information, process and relay it out there.
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.
Many proprietors keep asking whether they could fill their names as the statutory proxy. Well, the answer to this, is that you can add yourself as the proxy for your LLC. There are not many restrictions on the person to fill in that capacity. Besides the owner, it could be an employee or a hired service. The truth, on the other hand, placing your name as the statutory representative may not be a perfect idea.
Imagine a scenario where you are expanding your company to a neighboring state. With your name as the statutory representative, it means you have to be a resident of that state. This is the basic requirement for anyone who wishes to fill that capacity. Chances are, it was never in your plans to relocate. This may force you to move into that area. If not, you may have to find another alternative but yourself.
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.
Apart from not being in a position to be present at all times, there are other dangers to being your own statutory proxy. Take a situation where you receive a lawsuit before your staff and clients. The impact of such a move can be devastating. Employees may lose morale thinking the company is about to be shut down or get under receivership.
Finding the best way to explain to your employees would be a good rule of thumb. They do not have to imagine the business is going under receivership, or about to be closed. For the customers, damage control will depend with how they will take in the information, process and relay it out there.
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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