Business owners have a wide variety of choices to make at the very beginning of creating a business. These decisions range from the type of business to the location to who to hire. Not least of these decisions is how the business will be structured. These types of business structures could be nonprofit corporations, Limited Liability Corporations, Limited Partnerships, or professional corporations. One thing that all of these business structures have in common is that they must have a registered agent.
A registered agent is an individual or an organization that is registered in Minnesota or at least allowed to do business in Minnesota. The business needs to provide the name of the registered agent to the state of Minnesota in their initial paperwork starting their business. They must also provide an address. The registered agent has to have a physical location in Minnesota, so a PO Box is not sufficient, and must be available during normal business hours. The person forming the corporation may be the one to name him or herself as a registered agent. Alternatively, a friend or coworker could be named as the registered agent, as long as they have an address in Minnesota and are available at that address during typical business hours. Alternatively, a commercial registered agent can be named.
The purpose of a registered agent is not to be in charge of the business or even make business decisions. The primary purpose of a registered agent is to be available as the contact point for receiving service of process for lawsuits, subpoenas, summons, or receipt of important tax documents. These documents or lawsuits could be delivered personally by a private process server or law enforcement officer, or in some cases they may be delivered by certified mail.
Businesses do make changes often, and luckily the law makes accommodation for this. Once you have selected a registered agent for your business and filed the necessary paperwork, it is possible to change that registered agent at any time. Doing so simply requires filing particular paperwork with the state as well as providing the filing fee.
We have experience helping our clients with business structure and procedure. Call us today and we will talk with you about your business and its future