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What Does It Mean When The Registered Agent Resigns?There are many questions regarding registered agents. So, what does it mean when the registered agent resigns from their position with a corporation or LLC?The registered agent is the person who receives the service of legal documents on behalf of a business entity. Once they are served with documentation, they turn around and forward it to the officers of the business entity. The fee for such a service is usually a flat cost per month or year. So, what does it mean when the registered agent resigns? It means the business entity is out of compliance with the regulations requiring a registered agent. The Secretary of State in California will usually send a notice to the principal business office demanding the designation of a new agent. If this is not done, the entity can be fined and service can be considered done if it served on the Secretary of State on behalf of the entity. Why would a resident agent resign? There are a couple of reasons. The first is they haven’t received payment. In fact, this is the most common reason. The second is the agent discovers there is something nefarious or unbecoming about the business or its owners and wants nothing to do with it. The agent can resign by simply sending a form to the state. ******************* Nothing in this article is intended to create an attorney-client relationship. Please contact me if you have any questions. << Back to Business Entity Choice |
