When an LLC or Corporation does business in one state, but is registered in another, it is required to register as a foreign entity. This registration involves completing a form with the secretary of state’s office providing the name of the business, state formed, mailing address, and name and address of the registered agent. The registered agent is the person or company that will accept legal mail on behalf of the entity. If you live in the state or have an office in the state, you can be the registered agent. Alternatively, you can elect to have us serve as the registered agent. There is no cost for Kansas and Missouri registered agent services if you are a member of Guarded Pockets™. If you are not a member of Guarded Pockets™, registered agent services cost $49/ year.
Frequently Asked Questions
Simply put — because its required by law. Each state requires that any entity that does business in or owns property in its state, register as a foreign entity. The primary reason for this is that the state wants to ensure that there is a registered agent if a resident of the state needs to sue the company. If you don’t have a registered agent, the secretary of state may accept service on your behalf resulting a default judgment being entered against your company.
There is no penalty per se as it is not criminal nor can anyone fine or jail you for not registering. That being said, if you do not register your entity, you can not legally enter into contracts or file suit. Therefore, if someone causes damage to your company or breaches a contract, you can not avail yourself of the state’s courts.
Moreover, if you do not have a registered agent in the state where you are doing business, the secretary of state may accept service on your behalf. This could result in judgment being entered against your entity, which then could be collected in your home state.
Finally, if you haven’t registered your business in the state, a court may find that you were acting individually instead of on behalf of a company. In this instance, you will lose the protections of the LLC and may be forced to turn over personal assets to pay a judgment.
It is pretty simple. All you need to do is complete the form on the secretary of state’s website and pay the applicable fee. This fee is usually between $100 and $200. The only caveat to this is that you will need a certificate of good standing from your home state before registering the foreign entity.