The person or corporate entity that receives tax and legal paperwork on behalf of a nonprofit organisation is known as the registered agent. In certain areas, a registered agent is also known as a resident agent or statutory agent.
When you start a 501c3, most states require that you have a registered agent. If they match the state’s qualifications, the agent may be a professional service, oneself, or a coworker.
A registered agent is a professional who will represent your company to the state while you run your firm. 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 the majority of states:
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 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.
Before you use a registered agent service, think about the benefits and drawbacks of this technique.
There are various reasons why you should consider employing a registered agent service for your nonprofit organisation. This strategy, in particular, can:
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.
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.
When you submit your nonprofit’s formation documentation, you must choose a registered agent. Articles of Incorporation, Certificate of Formation, or Certificate of Incorporation are common names for these documents.
Most states allow NGOs to file online, and many additionally provide hard copy formation forms for filing by mail or in person. You must provide the name, physical address, and postal address of your nonprofit’s registered agent (if applicable). In certain jurisdictions, your original registered agent must additionally agree to their appointment by signing the formation paperwork or filing a separate consent document.
You may usually alter your registered agent online, via letter, or in person, just as you can nominate your first registered agent. Most states require firms to complete a declaration of change form.
Your new registered agent may also be required to sign a statement of change paperwork to confirm their appointment.
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.
