You Need a Registered Agent
To form your nonprofit, you will be required to list a registered agent. This person is in charge of accepting legal paperwork on behalf of your nonprofit if you are sued. To learn more, read Chisholm Law Firm’s blog to learn more.
What is a Registered Agent?
The registered agent (RA) is responsible for accepting “service of process,” the legal paperwork that must be hand-delivered if the nonprofit is ever sued. They ensure your nonprofit has a physical address to be contacted or served with the notice of a lawsuit.
This person will also be responsible for receiving correspondence like compliance information and tax notifications. They will then need to deliver that paperwork to the officers of the nonprofit.
Under the United States business law, every nonprofit must have a registered agent. But that does not mean that it is a punishment. When you hire an RA, you will be able to focus on what is important while they handle incoming mail and official notices.
Who can be a Registered Agent?
Many nonprofits founders list themselves as registered agents. However, listing yourself can come with some privacy concerns. If you are concerned about protecting your privacy, here are a few other solutions.
Friend or Family Member
You can ask a friend or family member if you can list them as the registered agent of your nonprofit. They would need to sign the Articles of Incorporation stating that they agree to accept responsibility as the registered agent.
Board members or stakeholders can also serve in this capacity. Remember that registered agents must be a resident of the state you are filing in and must have a physical address in that state. Make sure they meet these two criteria before asking them.
Additionally, you will want to ensure that the person you hire is responsible. They will be in charge of handling necessary paperwork for your nonprofit, and it’s important not to lose any of that information.
Hire a Service
You can pay a registered agent service for less than $100 a year, and they will provide you with the address to list, and they will have a similar process to listing yourself or a friend or family member. They would need to sign the Articles of Incorporation stating that they agree to accept responsibility.
Feel free to search online for “registered agent companies” to evaluate your options and choose a company that meets your needs.
Serve as the Registered Agent Yourself
You can serve as the registered agent of your nonprofit yourself if you incorporate your nonprofit in the state of your residency. At a minimum, we recommend using some privacy strategies to protect your physical home address if you choose to serve in this capacity.
Speak to an Expert
When looking at hiring a registered agent, it’s crucial to ensure that everything is set up the way it should be. For that reason, you should speak with an expert who can help you get all your ducks in a row.
Chisholm Law Firm has helped thousands of people start and grow nonprofits that impact the world. If you want the best for your nonprofit, look no further than Chisholm Law Firm. Our clients have a 100% success rate for nonprofit and trademark filings*.
You can rest assured that your nonprofit is in the best hands and that we’ll get everything done right the first time. Call us today to schedule your free consultation.
It shouldn’t be this hard to be a superhero.
*Past results do not determine future outcomes.