Every LLC and corporation in Arizona must designate a registered statutory agent to receive legal documents and other official papers and correspondence on behalf of the company. Below, we explain more about what a registered statutory agent is and what happens if your company doesn’t have one.

What Is a Registered Statutory Agent?

A registered statutory agent is a person or entity that a company designates to accept service of process, official correspondence from the state, and other important documents and forward them to the appropriate company representatives.

A registered statutory agent provides the government and members of the public with a dependable point of contact for the company. All businesses registered in Arizona must appoint a registered statutory agent when they file their formation documents. The Arizona Corporations Commission and Secretary of State will reject a company’s formation documents if it doesn’t appoint one.

Arizona Revised Statutes § 10.501 provides that a statutory agent may be:

– An individual who resides in Arizona;

– A domestic corporation formed under Arizona law;

– A foreign corporation authorized to transact business in the state;

– A limited liability company formed under Arizona law; or

– A limited liability company authorized to transact business in the state  

Note that a registered statutory agent must have a physical address in Arizona; a P.O. box isn’t sufficient. Although it’s possible to be your own registered statutory agent, this isn’t recommended. First, you may not always be able to receive important documents during business hours. Even if you are available at work, you might not want to be served with a lawsuit or other documents there.

In addition, if your business address is also your home address, you may not be comfortable having it publicly available and searchable. Although you can avoid these pitfalls by designating any third part as your registered statutory agent, including a friend or family member, we recommend choosing a professional registered statutory agent for several reasons:

– A professional registered statutory agent will always be available to receive time-sensitive materials.

– A professional registered statutory agent will ensure that your company complies with the law in this area.

– If your business address is also your home address, having a professional registered statutory agent looks more businesslike and avoid interruptions with clients or customers if important papers arrive.

What Happens If I Don’t Have a Registered Statutory Agent?

There are several adverse consequences for failing to designate a registered statutory agent for your business. 

– This is critical…Not having a registered statutory agent could mean that a process server won’t be able to serve a lawsuit against your company. If this happens, a default judgment could be entered against you because you won’t know about it and thus won’t have representation in court. You may also miss notifications from the IRS or the Arizona Department of Revenue, which could have legal and/or financial consequences.

– If your LLC or corporation is at the formation stage, the Arizona Corporation Commission will reject the formation documents if they don’t list a registered statutory agent. 

– If your company does have a registered statutory agent, but that person or entity can no longer serve in that role for some reason and another one isn’t designated in a timely fashion, the business could face fines and lose its certificate of good standing. Loss of good standing means your company will lose the rights to its name; have more trouble securing financing; not be able to file lawsuits; and no longer provide limited liability protection for the owner(s), who will be personally liable for business debts and other financial obligations. 

– If you start doing business in other states and fail to designate registered statutory agents there in accordance with state requirements, your company’s authority to do business in those states could be forfeited.

– If your company continues to lack a registered statutory agent, it could be administratively dissolved. 

We Offer Low Registered Statutory Agent Costs

Timothy Coons legal team offers registered statutory agent services at a flat rate.  If you form your LLC with us, we will be your registered statutory agent for free for the first year.  For every year after that, we offer statutory agent services for just $95/year.  

Contact Counxel Legal Firm

If you would like to learn more about registered statutory agents, contact Counxel Legal Firm at 480-536-6122 or at intake@wordpress-457010-3165254.cloudwaysapps.com. 

This article is intended for informational purposes only and does not constitute legal advice for your specific situation. Use of and access to this article does not create an attorney-client relationship between you and Counxel Legal Firm. Please contact intake@wordpress-457010-3165254.cloudwaysapps.com or 480-536-6122 to request specific information for your situation.

*Conveniently located off the 101 Freeway and the US 60 in the middle of Phoenix, Scottsdale, Tempe, Chandler, Gilbert, Mesa, and Queen Creek!