A Maryland resident agent (also referred to as a registered agent or statutory agent in some states) is a person or company designated to be the official point of contact for a company.
The purpose of a resident agent is to receive service of process (legal mail such as a summons, subpoena, or lawsuit) and forward it to the appropriate person in the company. Resident agents are required by the state for a Maryland Limited Liability Company (LLC), corporation, Limited Liability Partnership (LLP), or Limited Partnership (LP), but sole proprietorships and general partnerships do not need one.
What are the Requirements of Maryland Resident Agents?
Maryland state law, Statute § 2-1081, requires registered entities to have and continuously maintain a resident agent.
In addition to the state legal requirement, if a process server is unsuccessful in reaching the company’s resident agent, the court can proceed with legal proceedings, which could result in a judgment being placed against the business. Additionally, by not maintaining a resident agent, an entity may lose its good standing with the state, and the owners may lose their liability protection.
There are a few requirements to be a resident agent in Maryland, which include:
- A Maryland resident 18 years or older may be appointed. Alternatively, a registered business entity, such as a resident agent service, may be appointed.
- Having a physical address (often referred to as a registered office or principal office). This can be the actual address of the business, the home address of an owner, or even the address of a friend or family member. PO Boxes and mail drop services are not allowed since someone has to be available to sign for documents.
- The agent is generally available to receive service of process on behalf of the business during normal business hours, normally between 9 a.m. and 5 p.m.
Can I Be My Own Resident Agent In Maryland?
Yes, you can serve as your own resident agent in Maryland, provided you meet the state’s requirements above. This option is the least expensive and isn’t overly complicated, but there are a few potential drawbacks. A few of these include:
- Privacy: The resident agent’s name and address are listed on the State of Maryland business database. This can be concerning if someone runs a small business on the side and doesn’t want their employer to know about it. Also, if the business is sued, the notice will be delivered to the registered office address, and employees, customers, or neighbors can witness the event. Last, if the registered office address is the owner’s home address, there is also the remote possibility of a vindictive litigant or upset customer finding the address and showing up at the business owner’s home.
- Availability: Maryland requires the resident agent to be available at the registered address during regular business hours. The biggest issue with availability, especially if a home address is used, is if the agent goes on vacation or is otherwise away for some period of time and can’t be reached.
- If the Business Expands Outside of Maryland: If the business has a physical presence in multiple states outside of Maryland (offices, warehouses, employees, etc.), a foreign entity registration will often need to be filed with those states and would require that a resident agent be appointed in each additional state.
- Due Date Reminders: Resident agent services often provide annual report reminders and state updates to help keep the entity in good standing with the state.
Several alternatives are available if a business owner chooses not to serve as a resident agent in Maryland. They can appoint a trusted individual, such as a family member, friend, or employee, who meets the state’s requirements and is willing to take on the responsibility. Law firms or accountants familiar with the company’s affairs may also offer this service. A cost-effective solution is hiring a professional resident agent service specializing in fulfilling this role.
How Much Does a Maryland Resident Agent Service Cost?
There is no cost for the business owner to be the resident agent. If a commercial resident agent service is hired, expect to spend between $100 and $150 per year, depending on the provided services.
How Do You Appoint a Maryland Resident Agent?
A resident agent in Maryland is initially appointed when the entity formation paperwork is filed with the Maryland State Department of Assessments & Taxes.
How Can A Resident Agent Be Changed In Maryland?
To change a resident agent in Maryland, submit the Resolution to Change Principal Office or Resident Agent Form along with the filing fee to the Maryland State Department of Assessments & Taxes. In addition to filing this form, the LLC operating agreement or corporation bylaws should be updated to include the new resident agent’s information.
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