When forming a business, one of the first decisions you’ll make is choosing a registered agent. This is the person or company designated to receive official documents on behalf of your business, lawsuits, tax notices, or important state correspondence.
A common question new business owners ask is, “Can I just use my friend or family member as my registered agent?” The short answer is yes, you technically can, but you really shouldn’t. Here’s why.
What Is a Registered Agent and Why Do You Need One?
A registered agent (sometimes called a statutory agent) is the official point of contact for your company. Their address is on file with the state, and that’s where important legal papers will be sent.
If your business gets sued, the registered agent is the one who will be served with court documents. If the state needs to notify you of compliance filings or tax issues, they’ll send it there too. In short, this role is critical to keeping your company in good standing.
Can a Friend or Family Member Legally Be Your Registered Agent in Florida?
In Florida, any adult with a physical street address in the state can serve as a registered agent. That means your spouse, sibling, or best friend could qualify, as long as they meet the residency requirements.
But while this may seem like an easy (and cheap) solution, it comes with serious risks for your business.
Why Using a Friend or Family Member as Registered Agent Is a Bad Idea
Many business owners start out thinking it’s harmless to list someone they trust, but here’s what can go wrong:
- Missed Lawsuits or Deadlines: If your friend or family member forgets to check the mail, isn’t home when documents are delivered, or doesn’t recognize the importance of a notice, you could miss critical deadlines. That can mean losing a lawsuit by default or facing penalties from the state.
- Privacy Concerns: Your registered agent’s address is public record. If you list your friend or family member, their personal home address will appear in public databases for anyone to see.
- Professionalism Issues: Imagine your business partner or investor finding out your “official” legal representative is your cousin’s apartment. It may not send the right message about the seriousness of your company.
- Awkward Situations: If your company is ever sued, your friend or family member could be personally handed the lawsuit. That’s not only uncomfortable, but it could also damage your relationship.
What Happens If You Don’t Have a Reliable Registered Agent?
Failing to maintain a proper registered agent in Florida can lead to:
- Loss of good standing with the state.
- Fines or penalties for non-compliance.
- Administrative dissolution of your company (your LLC or corporation could actually be shut down).
- Default judgments in lawsuits because you never received notice.
The Smarter Choice: Hiring a Professional Registered Agent
Instead of taking chances with a friend or family member, most business owners choose a professional registered agent or an attorney. Here’s why:
- They understand the importance of legal deadlines.
- They are always available during business hours to accept documents.
- They keep your personal and family addresses private.
- They provide a level of professionalism and reliability that protects your company’s credibility.
Florida Businesses: Protect Yourself From Future Problems
At our firm, we’ve seen firsthand how small mistakes, like listing the wrong registered agent, can create big legal problems later. Choosing a professional may seem like a small step, but it’s one of the best ways to keep your business legally secure.
If you’re forming a business in Florida or want to review whether your current registered agent setup is protecting you, contact one of our experienced attorneys in Miami at 305-570-2208.
You can also contact our founding attorney Eduardo A. Maura at eduardo@ayalalawpa.com.
Schedule a case evaluation online here.
[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].
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