Nonprofit organisations in Michigan will almost certainly need to select and have a registered agent.
A registered agent receives any official documents from the State of Michigan, as well as any service of process filed on a firm in a lawsuit.
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What Is a Resident Agent in Michigan?
A resident agent is a professional who will represent your company to the Michigan Department of Licensing and Regulatory Affairs while you run your business. In certain jurisdictions, resident agents are referred to as registered agents, statutory agents, or service of process agents.
Typically, your resident agent will receive mail on your behalf, such as compliance information and tax alerts. 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 Michigan:
They might be either native or international persons or businesses.
Individuals must be Michigan residents and above the age of 18.
To operate in Michigan, businesses must be registered.
They must have a physical address in Michigan (not simply a P.O. box).
During normal business hours, they must always be accessible at the specified physical location.
In Michigan, may I act as my own registered agent?
As long as they complete the standards given above, anybody may act as your nonprofit’s resident agent. You may function as your nonprofit’s resident agent, or you can choose a member of your board of directors or a trustworthy friend.
If you choose to serve as your organization’s resident agent, you must recognise the significance of the role. If you miss a filing date or lose a document, your nonprofit’s compliance status may be jeopardised, and the Department of Licensing and Regulatory Affairs may revoke your company licence.
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 Michigan?
Before you choose a Michigan 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 Michigan 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. Law enforcement officials may deliver these notifications to your home or workplace if you operate as your own resident agent, 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 Prompt Handling of Your Business Mail: Because a registered agent service’s major duty is to act as a resident agent for a variety of organisations, you can be certain that any mail they receive will be addressed immediately. They will also be accessible during regular business hours to address any queries you may have concerning these papers.
Maintain Your Organization’s Compliance: You must ensure that your nonprofit continues to meet the regulations set out by the State of Michigan and the federal government (if you successfully file for 501(c)(3) status). Hiring a registered agent service can assist you avoid missing any filings.
Provide Convenience: During business hours, resident agents must be present at their specified residence. 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 resident 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 resident agent must be accessible during normal business hours at their indicated address. 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 resident agent of your nonprofit must be a resident of the state in which it is formed. If you do not live in Michigan, you must employ a Michigan resident 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 Michigan Resident Agent?
When you submit your Michigan nonprofit’s Articles of Incorporation, you must choose a resident agent. In Michigan, the fundamental nonprofit creation document is the Articles of Incorporation.
Online Nomination of a Registered Agent
You may use the Corporations Online Filing System of the Michigan Department of Licensing and Regulatory Affairs to submit your nonprofit’s Articles of Incorporation and pay the $20 filing fee. You may choose your nonprofit’s resident agent when filling out the Articles of Incorporation online.
Nominating a Registered Agent in Person or by Mail
Download Form 502 – Articles of Incorporation, fill it out completely, and return the original plus one copy (together with the $20 filing fee) to the Michigan Department of Licensing and Regulatory Affairs by mail or in person. In Article IV, you will provide the name and contact information for the registered agent.
How Do I Change the Resident Agent of My Nonprofit in Michigan?
Simply fill out Form 520 – Certificate of Change of Resident Agent and submit it to the Michigan Department of Licensing and Regulatory Affairs together with the $5 filing fee to legally change your Michigan nonprofit’s resident agent.
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 resident 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.