A registered agent is the individual or business entity that receives legal documents from the state, and then forwards them to your business address. But why is this a requirement, and who should you designate as your registered agent in Ohio?
In this guide, we will break down all the details you need to know about Ohio registered agents.
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What is an Ohio Registered Agent?
One of the most common questions we receive from entrepreneurs in Ohio is why a registered agent is required to form an LLC or corporation. While it might seem like an unnecessary middle-man type of role, the registered agent fills a vital role.
The registered agent’s job is to provide a reliable way for the state to contact an official representative of your business at any time, which is especially important if your business is ever sued. If you didn’t have a registered agent, a lawsuit could progress through the courts without you even knowing about it, which is obviously far from ideal.While Ohio does not provide a recommended list of registered agent services, we reviewed the top options and compiled a list of the best Ohio registered agent services based on price and overall value.
Who Can Be an Ohio Registered Agent?
The Ohio Secretary of State dictates that a registered agent (sometimes referred to as a “statutory agent”) may be either an adult individual residing in the state, a domestic or foreign company, or an unincorporated nonprofit association with a business address in the state. If the agent is a business entity, it must meet all of the requirements outlined in Ohio’s Title XVII of the Revised Code.
Aside from the legal requirements, an important aspect to discuss is who should be your registered agent. You have the right to declare yourself as your own registered agent, which has its pros and cons.
On the positive side, you can save some money by not paying anyone to serve as your agent, but you’ll also likely need to make your home address a matter of public record, which is not ideal. Additionally, you’ll need to be physically present at your business during all standard operating hours (9-5, M-F).
Some entrepreneurs like to have a friend or family member serve as their registered agent, but if that person doesn’t have experience in this position, they might not know what is expected of them. In addition, designating your lawyer or accountant as a registered agent can work, but these options are usually quite expensive.
Our preference is to hire a professional registered agent service, which provides a combination of convenience, affordability, and peace of mind that is unrivaled by any of these other options.
How Do Ohio Residents Get Served?
The most important part of a registered agent’s role is being served a summons.
In the state of Ohio before a lawsuit begins, it is recommended that the parties seek to first settle outside of court. This can be done through the drafting of a demand letter, which the plaintiff can use to detail a request to the defendant. If no agreement is reached, the lawsuit moves forward with the submission of a claim.
To proceed, the plaintiff must complete and submit a claim form to the court of the county in which the defendant has a registered office. After completion, the document must be submitted along with a fee (usually of around $100).
If these steps are all taken correctly, the state of Ohio will allow the sheriff of the county, the bailiff of the court, or another appointed person to deliver the summons to the defendant’s registered agent.
How to Designate an Ohio Registered Agent
The answer to this question depends on what type of business you’re starting, but with either a corporation or an LLC, you’ll need to designate your registered agent when you form your company.
When forming an LLC in Ohio, you’ll need to designate your registered agent in the Articles of Organization (form 533-A) On the other hand, if you’re forming a corporation in Ohio you’ll be prompted to designate your company’s registered agent in the Articles of Incorporation document (form 532-A).
The completion of either form requires that the new registered agent sign an acceptance of appointment which certifies consent.
How Can I Change My Ohio Registered Agent?
If you would like to change your registered agent for any reason, the process is pretty simple.
The only necessary form for changing your registered agent in the state of Ohio is the Statutory Agent Update. The document, which costs $25.00 to file, is appropriate for use with both LLCs and corporations.
It can be filed either online through Ohio Business Central or by completing and printing the PDF file and mailing it to the Ohio Secretary of State. In either case, it is necessary for the new agent to sign the Update to certify consent of the appointment.
How Does an Ohio Registered Agent Resign?
Sometimes, a registered agent may have to resign from their position.
Registered agents in Ohio wishing to resign may do so by completing the Statutory Agent Update form detailing the resignation. The Secretary of State also requires that the registered agent send a copy of the completed Statutory Agent Update to the business entity as a form of written notice. There is a $25.00 fee to submit the document.
Why Should You Hire a Professional Ohio Registered Agent Service?
Hiring a professional registered agent is basically the best of both worlds between serving as your own agent, and designating a lawyer or accountant.
The biggest benefit in our opinion is the privacy protection this allows, as you will be able to keep your personal address private. There’s also a major advantage compared to having an attorney or accountant serve as your agent, namely the fact that registered agent services are almost always much cheaper.
Another reason we like this option is that these companies specialize in providing quality registered agent service. They know exactly what’s expected of them, and there are rarely any issues to speak of.
The other major benefit of hiring a registered agent service is that most of them operate in all 50 states, so that if you ever want to expand your business into another state, you won’t need to hire an additional registered agent. Your same registered agent will be able to provide the coverage you need in your new state, while still providing the same service in Ohio. If you hired a lawyer or accountant, they would only be able to help you expand to a new state if they have another physical office in that state.
You Stay Compliant
Finally, most professional registered agents operating in Ohio offer some sort of compliance calendar. With this service, your registered agent helps you keep track of due dates for ongoing LLC maintenance requirements like annual reports, which is a valuable bonus.
The top registered agent service providers include some other appealing attributes, including access to their extensive customer support networks. Some of them include a full year of registered agent service with any business formation package, which can be a real money-saver. Another welcome attribute is that some registered agent services provide volume discounts if you require service in multiple states, or if you prepay for multiple years.
What Is the Penalty for Not Designating a Registered Agent in Ohio?
You need to have a registered agent to form your limited liability company or corporation in Ohio in the first place, but if you let your registered agent service lapse, there could be some serious consequences.
Failure to maintain a registered agent could lead to your business losing its good standing with the state of Ohio, and the state also has the right to officially dissolve your LLC if they choose to.
Another issue would be the difficulty of being served if your business is sued. If the state cannot get ahold of your registered agent, a court may decide to go ahead with the lawsuit without your knowledge, which could even lead to a judgment against you. This can happen not just if you fail to designate a registered agent, but also if your agent is not present during business hours to accept the document delivery.
As you can see, the task of designating a registered agent for your Ohio business isn’t quite as easy as just writing down your own name.
There are significant downsides to just about every option in our opinion, but we recommend hiring a professional registered agent service because that option has the fewest disadvantages. They charge affordable rates, and you never have to worry about losing your good standing, having your LLC or corporation dissolved, or having a lawsuit proceed in your absence.
If you have any further questions, you can contact the Ohio Secretary of State:
Ohio Secretary of State
180 East Broad Street, 16th Floor
Columbus, Ohio 43215