Video Transcript of “What Is a Registered Agent?”
Hi. My name is Garrett Sutton, the author of this great book, “Start Your Own Corporation.” I am the proprietor of Corporate Direct. We form entities for people across the country, and one of the big questions I get is “What is a registered agent?”
Sometimes they’re called resident agents. The registered agent is an important job. They are there to accept service of process, meaning a lawsuit, on behalf of your business. So you want to get notice if you’ve been sued. If you use a bad resident agent, or if you use your own personal address as the resident agent and you’re not home, you may not get notice of this lawsuit.
Why Fast Notice Is Important
Now you only have 30 days, in some cases 20 days, to answer this complaint. You’ve got to hire an attorney. You’ve got to get your ducks in a row, and you’ve got an answer that complaint. If you don’t, you can lose the case.
So you want a resident agent who’s going to let you know, right off the bat, that you’ve been served. If it comes to us, we are on the phone with you immediately letting you know you’ve been served and it’s time to talk to an attorney and defend yourself.
Being Your Own Resident Agent
Now, as I mentioned, you can be your own resident agent, but in some states the law says that a resident agent has to be open from eight to five to accept service of process.
If you go to work, you’re not home to accept that service of process. If you don’t accept that service of process, the person serving you can go to the court, and get permission to publish in the newspaper the notice of the lawsuit. It’s in two-point font. You’re not going to get that notice either.
Avoid Loosing because of a Default Judgment
When they try and serve you, you’re not there. When they publish it in the newspaper, you don’t respond. Then they can go back to court and get a default judgment. That means they win the case. So as you can see, a registered agent is really important. We want you to get notice immediately.
Now, the other problem with being your own resident agent is your information is on the Internet. You have given up your home address. People can find out where you live. We had a case where some people used Google Maps to see that the owner of the LLC lived in a very nice house, and that governed their actions towards this person.
You want to have privacy. I think it’s better for you to have registered agent that is open from eight to five, knows the importance of a lawsuit, and will keep your home address off the Internet. This is very important.
So the registered agent is an important function. We offer this service in all 50 states. We’d be happy to assist you. You can go to Corporate Direct for more information, and you can subscribe to our YouTube channel and get more information on these important topics. Thanks for joining me today.