Most business people are aware of the fact that every corporation needs a registered agent. This agent’s main job is to receive legal notices on behalf of the corporation. However, determining who can fulfill this role is usually an open-ended question during business formation. The business laws of each state dictate how a corporation may appoint a registered agent. In Illinois, there are several avenues to meeting the requirement.
1. Take a Look in the Mirror!
The first obvious step in finding a registered agent is to appoint yourself. You, as an individual, can choose to undertake the role. The state’s Business Corporation Act of 1983 specifically grants this authority in subsection (b) of 805 ILCS 5/5.05.
Although this may seem like the easiest option at the start, the Chicago law firm of Roth Fioretti says it’s important to consider the long-term responsibilities. Most business people are too busy running a company to be bothered with ancillary matters. Important pieces of mail, like a summons, can easily get lost in the flow. Therefore, sometimes it is better to have someone else do the job to ensure such mail gets the attention it deserves.
2. Keep It In The Family
Some business owners opt to have a family member or close friend act as a registered agent. A trustworthy relative will be sure to notify the corporation if any legal problems arise. However, there are a couple of requirements that need to be met. First, the relative or friend must have a valid address in the state of Illinois. Second, they must be available at all times during business hours.
This choice will not work out if your relative works, or has other obligations away from home. When an agent is unavailable, it can be impossible for a process server to deliver legal documents. The failure to receive these documents could result in a default judgment. In some cases, the state may also decide to dissolve the business due to non-compliance.
3. Hiring a Commercial Agent
For most corporations, it makes the most sense to hire a business that acts as a registered agent. These businesses exist for the sole purpose of acting as a registered agent. They make it a point to have someone available to receive service during any day of business. Most services are reasonably priced at $100 per year or more. This is a small price to pay for flexibility and peace of mind.
4. Making the Final Decision
At the end, who you choose as a registered agent will depend on the unique needs of your business. If you have any doubts, using a commercial agent like Incorp or Harbor Compliance is a viable option. The valuable time of corporate staff can be better spent on business matters than worrying about process servers.