Colorado requires all businesses registered with the secretary of state to have a registered agent. The registered agent is a person or company designated to be the official point of contact between the government, the courts, as well as taxing authorities and your business. The appointment of your registered agent occurs during the filing of your articles with the secretary of state.
The responsibility of the registered agent is to accept legal notices and tax documents for the business; then forward them to the appropriate person. Colorado Statutes require a business to continuously maintain a registered agent and office within the state.
If you fail to maintain a registered agent for your business the secretary of state can assess penalties and fees. It may also close down your business.
Moreover, if your business doesn’t have a registered agent and is sued; the process server won’t be able to give legal notice on your business. The lawsuit however, will still proceed. As a result, your business could have a judgement placed against it without you even knowing.
The Colorado statutes allow a person who is an owner, member, or officer of a business to be the registered agent for their own business.
Here’s the pro tip: Don’t be the registered agent for your own business.
It may seem cheaper and easier to do it yourself, however like anything else, it may come at a price. Here’s why.
- Your Privacy – If you decide to be your own agent your address becomes public record. It will be available for everyone to see. This could be your employer who you don’t want to know about your side hustle. Likewise, if your business is sued, the summons and complaint will be delivered to the address on file. Employees, customers, clients, or even neighbors could witness the event, which would not be a good look for you or your business. If you want to operate as an anonymous business owner, you’ll need a registered agent. Lastly, there is always the possibility of a revengeful litigant or upset customer showing up at your house or place of business.
- Your Availability – Using your home address has additional pitfalls. Colorado requires the registered agent to be available at the principal address during regular business hours. So, if ever take a vacation, are not home during business hours, or travel for business a process server will not be able to serve you papers. The lawsuit will still continue however. A default judgment may be entered against your business without you knowing it.
- Your Time – Your business’s periodic report is due annually. If you’re the type of person who’s been delinquent filing with the state because your too busy making money at your business, then perhaps handing this responsibility off to some one else is best for you. Registered agent services provide annual report reminders and updates on any state requirements.
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This article is for educational purposes only, and does not constitute legal advice about your case or situation. There may be exceptions to the information outlined above. Please consult an attorney if you have specific questions about your business.