Why Would I Want to Have Someone Else Be the Statutory Agent When Incorporating a Small Business?

A statutory agent, also known as a registered agent, is an individual, or sometimes a third-party business, designated by a corporation to receive "service of process." Service of process includes such items as notices of lawsuits and summons to appear in court. The name and physical address of your corporation's statutory agent is required information on your Articles of Incorporation and you cannot incorporate without designating one. You may be able to designate yourself as the statutory agent of your business, but there are many reasons why you may want to appoint someone else to handle these legal matters.
 
First and foremost, running a small business takes time and dedication. While, in ideal circumstances, you will not be receiving much legal paperwork, in the event that you are sued or summoned to appear in court, you will find yourself with a lot of additional work on your hands in just managing the legal issues. These issues can interfere with your operation of the business, and conversely, the operation of your small business can interfere with your legal defense.  It is best for one person to handle each aspect.

There are a few other reasons to hire an outside agent for incorporating a small business. One is for the anonymity of your business' clients, vendors and neighbors. Another is for more prompt notification of any litigation. An outside agent will generally call you directly as soon as any information is received, where you might initially overlook a summons or notice of lawsuit. Also, many businesses acquire addresses for junk mail from State Office databases, and having the address of an outside agent on your Articles of Incorporation may help avoid some of this mail. For help with questions about incorporating a small business, please contact us.