Why You Need A Registered Agent In Delaware

By BenOni | March 16, 2023

If you’re incorporating in Delaware, you’re in good company. More than 60% of Fortune 500 companies are incorporated in Delaware, and many of them have chosen to have a registered agent in Delaware.

Discover collection of articles right now about financial and business.
SparkleTeddy talk about and throw in personal financial planning,
business and Taxes. You can expect to see reviews of financial products
like mutual funds and banks to random musings on money related matters
like tax, budgeting and deal-hunting.

So, what is a registered agent and why do you need one in Delaware? A registered agent is a person or business that agrees to receive and forward important legal documents on behalf of your company. In Delaware, the registered agent must have a physical address in the state and be available during normal business hours.

Why do you need a registered agent?

There are a few reasons why you might need a registered agent, but the most common one is to ensure that you can be served with legal documents. If someone sues your company, they’ll need to serve you with a summons and complaint. The summons will tell you when and where you need to appear in court, and the complaint will explain the nature of the lawsuit.

If you don’t have a registered agent in Delaware, the court will likely dismiss the case because you were not properly served. And if you are served but don’t appear in court, you could be found in default and the court could enter a judgment against you without hearing your side of the story.

A registered agent can also help you avoid fines and penalties. In Delaware, companies that don’t have a registered agent are subject to a $125 annual fee. And if your registered agent resigns or can’t be located, you could be subject to a $500 fine.

Finally, a registered agent can help you stay compliant with the law. In Delaware, companies are required to file an annual report and to pay a franchise tax. If you don’t file your annual report or pay your franchise tax, your company could be dissolved. A registered agent can help you keep track of these requirements and make sure that you meet them.

How to choose a registered agent in Delaware

Now that you know why you need a registered agent, you might be wondering how to choose one. When you’re looking for a registered agent, you should consider three things:

Location: As we mentioned, the registered agent must have a physical address in Delaware. This is important because it ensures that the registered agent can be served with legal documents.

Availability: The registered agent must be available during normal business hours. This is important because you don’t want to miss an important legal document because the registered agent was not available.

Experience: The registered agent should have experience in Delaware. This is important because the registered agent will be responsible for forwarding important legal documents to you.

You might be tempted to act as your own registered agent, but we don’t recommend it. Being a registered agent is a lot of work, and it’s easy to miss an important document if you’re not familiar with the process.

The bottom line

If you’re incorporating in Delaware, you need to choose a registered agent. A registered agent is a person or business that agrees to receive and forward important legal documents on behalf of your company. In Delaware, the registered agent must have a physical address in the state and be available during normal business hours.

There are a few reasons why you might need a registered agent, but the most common one is to ensure that you can be served with legal documents. If someone sues your company, they’ll need to serve you with a summons and complaint. The summons will tell you when and where you need to appear in court, and the complaint will explain the nature of the lawsuit.

If you don’t have a registered agent in Delaware, the court will likely dismiss the case because you were not properly served. And if you are served but don’t appear in court, you could be found in default and the court could enter a judgment against you without hearing your side of the story.

A registered agent can also help you avoid fines and penalties. In Delaware, companies that don’t have a registered agent are subject to a $125 annual fee. And if your registered agent resigns or can’t be located, you could be subject to a $500 fine.

Finally, a registered agent can help you stay compliant with the law. In Delaware, companies are required to file an annual report and to pay a franchise tax. If you don’t file your annual report or pay your franchise tax, your company could be dissolved. A registered agent can help you keep track of these requirements and make sure that