<\/span><\/h3>\n\n\n\nIn the event that a process server comes to serve your business entity with a service of process and your registered agent isn\u2019t posted at your company address during regular business hours, the process server will deliver the legal service of process to the Secretary of State instead. <\/p>\n\n\n\n
This is protocol. But when a government agency has your legal notices and business correspondence, you don\u2019t. So you won\u2019t have any idea your company is being sued, which isn\u2019t a good position to be in. <\/p>\n\n\n\n
These legal actions will still take place without you. This means you won\u2019t be able to defend your business in court, or even be present for the proceedings, and the result could be a default judgment against your company. <\/p>\n\n\n\n
Most business entities can\u2019t legally operate without a registered agent, so if you miss a service of process, the Secretary of State can revoke your company\u2019s good standing. This has immediate consequences for your business, like disqualification for business loans, prohibition from expanding to other states, and a total ban from doing business in your state. <\/p>\n\n\n\n
Your business name reservation also becomes nullified when you lose your good-standing status. Your best bet is to quickly sort your legal troubles, but even then, if another business went through the proper legal channels to use your business name, you may not get it back. <\/p>\n\n\n\n
If you own either a single-member LLC or multimember LLC, you\u2019ll be extra vulnerable after losing your company\u2019s good-standing status. It could even result in the governing agency in your state (usually the Secretary of State) initiating \u201cadministrative dissolution\u201d against your LLC. <\/p>\n\n\n\n
Administrative dissolution is when a government agency revokes a company\u2019s legal authority to conduct business in the state due to its neglect in meeting legal obligations. Translation: If you don\u2019t maintain a registered agent, a government agency can legally dissolve your LLC.<\/strong> <\/p>\n\n\n\nWhat\u2019s more, most business owners form a multimember or single-member LLC to benefit from limited liability protection. Without that, a person suing your business could list your hard-earned money and legally-gained assets as compensation in the lawsuit. <\/p>\n\n\n\n
Don\u2019t think you\u2019re safe if you don\u2019t own an LLC, either. Any business entity that operates without a registered agent can face serious legal and financial consequences. <\/p>\n\n\n\n