How Do I Sue A Company That Isn't Registered With Secretary Of State

One of the requirements for setting up an LLC is designating a registered agent. Not doing so can bring serious consequences.

A registered agent is a person or company who can have mail and of import legal notifications from the government, as well equally from anyone who tries to sue your LLC. The registered agent must be someone physically in the land with a physical address—non a post office box—who can receive mail and personal service.

What Is the Penalty for Not Having a Registered Agent

What Is The Penalty for Not Having a Registered Agent?

If your LLC fails to designate a registered agent, the outset problem you lot volition confront is that you won't fifty-fifty exist able to annals your LLC with the state to go information technology started. Naming a registered agent is a requirement on the form you lot must file, and the country won't take it without a named registered agent.

If you do proper noun a registered agent, but that person no longer fills the role, such as an employee who leaves the company or a registered agent visitor that has gone out of business or no longer represents y'all, y'all face financial consequences.

Cynthia Flynn of Hackler Flynn & Associates, APC in Pasadena, California, warns, "States impose fines and penalties on companies that don't comply with the LLC requirements."

John R. O'Brien PC in Washington, D.C., points out that to avert this kind of state of affairs, "It is essential to notify the Secretarial assistant of State when the registered agent leaves the company if they're an employee, and designate someone else to take his/her place."

The Legal Implications of Operating Without a Registered Agent?

Considering the registered amanuensis accepts of import notifications on behalf of your LLC, if you don't have a registered agent, or one who is available, this means that your LLC misses out on legal notices most things yous need to know, such as notifications from the IRS or your country tax section.

There are fifty-fifty bigger concerns to consider, though. Flynn says, "If you do not take a registered agent to receive litigation documents, including a complaint, a procedure server (the person who delivers court documents and notices of lawsuits) may try to serve your LLC through the Secretary of State. If this continues to exist unsuccessful, the courtroom case can proceed without your cognition. Often, the case will lead to a default judgment against the LLC."

If this happens, you lot wouldn't have a chance to defend yourself at all in a lawsuit because you didn't even know about it.

Going Without a Registered Amanuensis Could End Your Business

Failing to maintain a registered agent can ultimately pb to your business being completely close down. The state can append your permission to conduct business organization and remove information technology from good standing. This may mean your business:

can't expand into more states
is blocked from file lawsuits
won't get the financing you demand to expand

Flynn warns that, additionally, "Once a business loses its good standing condition, it risks losing the right to use its proper name in the land. As a result, other companies may exist able to learn the rights to its proper noun." So even if yous exercise take corrective measures and refile, your business proper noun may be gone.

Once your LLC has been dissolved, if yous keep to practice business, you and so become personally at risk. Rajeh A. Saadeh of The Police force Office of Rajeh A. Saadeh, L.L.C. in Somerville, New Jersey, explains, "If business organization is conducted notwithstanding, and then personal liability can follow to the members as there is no valid LLC shield."

Ensuring that you name a registered agent who is available and will exercise their job volition protect your LLC from difficulties.