Nonprofit organisations in Colorado will almost certainly need to designate and have a registered agent.
A registered agent receives any official documents from the State of Colorado, as well as any service of process filed on a firm in a lawsuit.
Table of Contents
What Is a Registered Agent in Colorado?
A registered agent is a professional who will represent your company to the Colorado Secretary of State while you do business. Registered agents are sometimes known as resident agents, statutory agents, or service of process agents in certain jurisdictions.
Typically, your registered agent will receive mail on your behalf, such as compliance information and tax notices. Registered agents are also in charge of receiving process paperwork. This simply implies that your registered agent will receive court summons and paperwork on your nonprofit’s behalf if it is sued.
The following are the criteria for registered agents in Colorado:
They might be either native or international persons or businesses.
Individuals must be Colorado residents and above the age of 18.
To operate in Colorado, businesses must be registered.
They must have a physical address in Colorado (not simply a P.O. box).
During normal business hours, they must always be accessible at the specified physical location.
In Colorado, may I act as my own registered agent?
As long as they complete the qualifications outlined above, anybody may act as your nonprofit’s registered agent. You may choose to be your nonprofit’s registered agent, or you can designate a member of your board of directors or a trustworthy friend.
If you decide to serve as your organization’s registered agent, you must grasp the significance of this role. If you miss a filing date or misplace a document, your nonprofit’s compliance status may be jeopardised, and the Secretary of State may revoke your nonprofit’s corporate registration.
Many organisations and other companies engage a professional registered agent service to guarantee that their company is always in compliance.
Should My Nonprofit Hire a Registered Agent in Colorado?
Before you choose a Colorado registered agent service, think about the benefits and drawbacks of this technique.
Advantages
There are various reasons why you should consider employing a registered agent service for your nonprofit organisation. This strategy, in particular, can:
Save Time: When you initially establish your Colorado charity, you must concentrate on doing everything possible to ensure its success. Hiring a competent registered agent service allows you to concentrate on what matters most while the registered agent handles all incoming mail and official notifications. Furthermore, they will often remind you of approaching key files or deadlines.
Protect Your Personal Privacy and the Reputation of Your Company: Unfortunately, your company may face a lawsuit at some point. All service of process notifications will be sent to a business address if you engage a professional registered agent service. If you operate as your own registered agent, law enforcement officers may deliver these notifications to your home or place of business, depending on the address on file.
Registered agent services are used to receiving and correctly processing legal documentation, in addition to preserving your privacy and the reputation of your firm. This will assist to guarantee that your company does not lose a lawsuit on a technicality because you failed to submit anything on time or handled something incorrectly due to a lack of understanding of how the legal system operates.
Ensure that your business mail is handled promptly: Because the major function of a registered agent service is to act as a registered agent for a variety of organisations, you can be certain that any mail they receive will be addressed quickly. They will also be accessible during regular business hours to address any queries you may have concerning these papers.
Maintain Your Nonprofit’s Compliance: You must keep your organisation in compliance with the rules of the state of Colorado and the federal government (if you are granted 501(c)(3) status). Hiring a registered agent service can assist you avoid missing any filings.
Provide Convenience: During business hours, registered agents must be present at their specified address. That is, using a registered agent service will enable you to take time off as required and work on a flexible schedule if wanted.
Provide National Serve: If you believe your organisation may desire to expand nationally, choose a national registered agent service that will continue to support you as your firm expands.
Disadvantages
The sole downside of using a registered agent service is that it is expensive, while you may serve as your own registered agent for free.
Is a Professional Registered Agent Service Required?
While employing a professional registered agent service is a good idea for many reasons, in other cases it is required. If you answered “yes” to any of the following questions, your organisation should use a registered agent service.
Is your non-profit open at odd hours? As previously stated, your nonprofit’s registered agent must be accessible during normal business hours at their provided location. If your organisation operates outside of typical business hours, you’ll need to engage a registered agent service.
Do you reside in another state? The registered agent of your nonprofit must be a resident of the state in which it is established. If you do not live in Colorado, you must employ a Colorado registered agent to represent your organisation.
Is your charity now or will it be situated in many states? If your organisation now operates in many states or intends to do so in the future, you must select a registered agent in each state where it will do so. You must employ a registered agent service since you cannot be in two locations at the same time.
Will you continue to function without a physical address? If you want to run your charity entirely online or without a physical location, you will lack a business address to provide on your Articles of Incorporation and other crucial legal papers. By using a registered agent service, you may provide their actual address on all papers.
How Do I Select a Colorado Registered Agent?
When you submit your Colorado nonprofit’s Articles of Incorporation, you must choose a registered agent. In Colorado, the fundamental nonprofit creation document is the Articles of Incorporation.
Online Nomination of a Registered Agent
The Colorado Secretary of State website allows you to submit your nonprofit’s Articles of Incorporation and pay the $50 filing fee online. You may choose your nonprofit’s registered agent when you complete the Articles of Incorporation online.
How Do I Change the Registered Agent of My Colorado Nonprofit?
To legally alter the registered agent of your Colorado organisation, just update this information on the Colorado Secretary of State website and pay the $10 filing fee. You must look for your company on the state website and choose “Statement of Change” from the available filing choices for your firm.
When filing, you must tick the relevant box to certify that your new registered agent has agreed to their appointment.
Conclusion
When you work at a charity, you have more essential things to worry about than monitoring the mail, submitting legal paperwork, and remembering compliance deadlines. A registered agent can help you with that. When you engage a professional registered agent service, you can put these responsibilities in their skilled hands and completely concentrate on what is most important to your firm.