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Why Every New Jersey Business Needs a Registered Agent: What You Need to Know

Nov. 13, 2024

If you've been following our business formation series, you're already familiar with the different types of business entities available to New Jersey business owners. We've discussed factors to consider when choosing a state to form your business and the nuances between New Jersey and Delaware as potential states of formation. You may have noticed our articles mentioning the term "registered agent" as a requirement for limited liability companies and corporations set up in both states. So, who is a registered agent? What role do they play in your business, and why must you hire one when forming your legal entity in New Jersey? Find out in today's comprehensive article.

What Is a Registered Agent?

A registered agent, in simple terms, is an individual or business entity responsible for receiving important legal documents and government correspondence on behalf of a business. Their role is to relay these messages to the business owner promptly. You might be asking yourself whether you need a registered agent for your business. The answer is a resounding yes. If you're forming a limited liability company or corporation in the Garden State, you are legally required to hire a registered agent or a registered agent service to receive critical documents on your company's behalf.

Why Does Your New Jersey Business Need a Registered Agent?

New Jersey requires all LLCs and corporations formed in the state to have a registered agent with a physical address. This agent must be available during regular business hours to receive official correspondence and relay this communication to the business. If your company is formed and incorporated in another state but wants to conduct business in New Jersey, you must register as a foreign entity and designate a registered agent in New Jersey.

Failing to comply with this requirement can have serious consequences for your business, including:

  • Loss of Good Standing: Businesses that fail to designate registered agents or registered agent services in New Jersey risk losing good standing with the state. This could lead to fines, penalties, and even administrative dissolution of the company.

  • Missed Legal Documents: Without a reliable registered agent, your business may fail to receive important legal notices or documents, which can lead to default judgments and other legal consequences.

Who Can Be a Registered Agent in New Jersey?

It's clear that your New Jersey LLC or corporation will need a registered agent to comply with the state's regulations and receive important notices on behalf of your company. But who exactly can serve as a registered agent? You have three main options:

An Individual Registered Agent

The first option is designating a business owner or one of the company's employees to be the registered agent. To receive communication on behalf of your firm, they must fulfill the following requirements:

  • Physical Address in New Jersey: The agent must have a physical address in New Jersey, also known as a registered office. It's crucial to note that this cannot be a P.O. Box—it must be a real, physical location where documents can be delivered.

  • Availability During Regular Business Hours: If you choose your own registered agent, they must be available during regular business hours, typically from 9 AM to 5 PM, to receive legal documents and notices on behalf of your company.

Professional Registered Agent Service

The other option is hiring a third-party company that provides registered agent services. These entities tend to be more reliable because they are always available during business hours, ensuring that legal notices are never missed. If you choose a professional registered agent service, make sure to check the company's track record and confirm that they have a physical location in New Jersey.

Another Business Entity

Finally, a business entity authorized to do business in New Jersey can also serve as your business's registered agent. Note that your company cannot be its own registered agent; it's best to work with a distinct company that meets the availability requirements.

Conclusion

That's it for the fourth article in our business formation series. It's clear that a registered agent is not a choice for New Jersey businesses but rather a necessity essential for complying with regulations and ensuring proper communication. Having a reliable registered agent or registered agent service safeguards your business from missed legal documents and helps maintain good standing with the state. Join us next time to answer a key question for successful business owners: where will you operate your business?

Are you wondering about any of the issues mentioned above? Please email us at  Info@staturelegal.law or call (732) 320-9831 for assistance.

At Stature Legal, we give business owners the clarity they need to fund, grow, protect, and sell their businesses.  We are trustworthy business advisors keeping your business on TRACK: Trustworthy. Reliable. Available. Caring. Knowledgeable.®

Explore Our Business Formation Series

Dive deeper into the essentials of establishing and managing your business in New Jersey with our comprehensive series:

Each article is crafted to provide you with the knowledge and tools necessary for successful business formation and operation in New Jersey