Considerations for Selecting a Corporate Agent
What is a corporate agent and why do I need one? A corporate/statutory agent is a person or entity that is designated to have authority to accept service of any process, notice, or demand that is required or permitted by statute to be served on a corporation or company. Ohio Revised Code §1701.07 requires that you maintain such an agent.
Who can be a corporate agent? Ohio law allows you to select any person who is an Ohio resident. Alternatively, most businesses that maintain an Ohio business address are able to serve as your agent.
What happens if I don’t update my corporate agent information? If you fail to maintain your corporate agent information, you may not be receiving service of process, notices, or demands that are required to be served upon your company. If these notices cannot be delivered to your corporate agent, they will most likely be delivered to the Secretary of State which may limit your ability to respond or defend against pending actions and/or law suits.
I. Privacy – The Ohio Secretary of State maintains certain information related to the formation and maintenance of LLCs and other incorporated entities. This information includes, among other things, the name and address of the agent(s) and incorporator(s). With proper planning, you can keep your name out of the public record and enhance the benefits of your corporate identity.
II. Reliability – Ohio law requires designation of a corporate agent in order to simplify communications with Ohio companies. The communications received by a corporate agent often contain time sensitive information and require deliberate handling. Selecting a trustworthy and competent agent is extremely important because your company will be deemed to have knowledge of all communications received by your agent.
III. Flexibility – The needs that you and your company have are unique and may require specialized treatment from your corporate agent. Ranging from specialized communication instructions to standardized litigation responses, selecting the proper agent can minimize stress, reduce costs, and maximize your ability to run your company.