Registered agents perform a critical task for businesses of all sizes. While we’ve discussed the benefits of hiring a registered agent, it’s equally important to understand the consequences of not having a registered agent.
Whether you’re just starting out or considering dropping your registered agent service, here are the serious risks your business faces without one.
You Can’t Incorporate Without One
If you’re forming a new business, every state requires you to list a registered agent in your incorporation documents. Without one, the state will reject your filing.
Even Delaware—widely known as the most business-friendly state—requires a registered agent. Learn more about incorporating in Delaware.
You Could Lose Your Right to Due Process
A registered agent receives service of process, ensuring your business is notified of lawsuits or legal actions. Without one:
- You may be sued and never receive notice
- A court could issue a default judgment against you
- Critical government documents like tax notices or annual reports may go undelivered
You May Be Fined or Penalized
Since having a registered agent is a legal requirement, failing to designate one can lead to state-imposed fines and penalties.
You Risk Personal Liability
Without a registered agent, your company can fall out of good standing. This means:
- You could lose corporate protections
- Your personal assets may be exposed to lawsuits and debt collection
You Could Lose Your Certificate of Good Standing
Your certificate of good standing proves your business is compliant with state requirements. Losing it can cause:
- Loss of your business name
- Problems securing financing or opening bank accounts
- Ineligibility to file lawsuits
- Fines, penalties, and more personal liability
You Could Lose Your Entire Business
Ultimately, not maintaining a registered agent can result in your business being administratively dissolved. This could mean the loss of your business name, legal protections, income, and hard work.
It’s simply not worth the risk.
Need a Registered Agent? URA Can Help
Universal Registered Agents provides fast, reliable, and affordable registered agent services in all 50 states. We’ll ensure your business stays compliant and protected.
Call us at (855) 236-9172 or click here to order registered agent services online. We look forward to supporting your business!
