When registering a business in the state of Arizona, you\u2019re required to register a statutory agent (aka registered agent) with the Arizona Corporation Commission<\/a>. This individual will serve as the legal point-of-contact for official correspondence on behalf of your business, receiving official mail from the state and accepting Service of Process for court documents.<\/p>\n Many new business owners gloss over this seemingly minor appointment, often defaulting to themself or their spouse without much thought. Unfortunately, this can lead to challenges down the road that may jeopardize your business.<\/p>\n As long as you meet Arizona\u2019s simple qualifications, you certainly have the right to be your own statutory agent. However, the better question isn\u2019t \u201ccan I\u201d \u2014 but \u201cshould I be my own registered agent?\u201d<\/p>\n Before we dive into who should serve as your statutory agent, it helps to understand what the role entails.\u00a0<\/span><\/p>\n In Arizona, a business\u2019s registered agent is legally referred to as the statutory agent. The terms are generally interchangeable as most other states refer to the position as a registered agent, but you\u2019ll need to use the proper terminology on state documents and applications.<\/p>\n What does a statutory agent do? A statutory agent is generally tasked with receiving important documents, including:<\/p>\n If you\u2019re thinking these duties are as simple as picking up the mail, think again.<\/p>\n When the government mails a time-sensitive letter to the statutory agent, they expect it to be opened and acted upon in a timely manner. If the correspondence includes a deadline, such as a requirement to pay a past-due tax balance by a certain date, you can\u2019t claim the excuse that you didn\u2019t pick up the mail until after the deadline.\u00a0<\/span><\/p>\n Similarly, when someone files a lawsuit against your business and attempts to deliver court documents via Service of Process, you\u2019ll be in trouble if the courier can\u2019t reach the statutory agent during normal business hours.<\/p>\n You can also find yourself in a pickle if your statutory agent neglects to pass the documents to you in a timely manner. There\u2019s often a strict timeline attached to court cases, and your failure to act or respond within the allotted time can lead to serious consequences.\u00a0<\/span><\/p>\n Under Arizona law, a statutory agent must be \u201can individual resident of this state, a domestic corporation, a limited liability company or a foreign corporation or limited liability company authorized to transact business in this state\u201d (ARS 29-604<\/a>).<\/p>\n The statutory agent must have a physical address in the state of Arizona (not a PO Box or CMRA), and he or she must be available during normal business hours to receive Service of Process.<\/p>\n Under these restrictions, the following individuals can serve as a statutory agent provided they maintain a permanent residence in Arizona:<\/p>\n Third-party business entities can serve as a statutory agent, too. It\u2019s actually quite common for business owners to outsource the role of statutory agent to an Arizona Statutory Agent Service, though doing so requires a monthly or annual fee.<\/p>\n Now that we understand you can serve as your own statutory agent, let\u2019s talk about the pros and cons of appointing yourself to the position.<\/p>\n The obvious benefit to serving as your own registered agent is that it\u2019s free \u2014 you don\u2019t have to pay a third party to handle your business correspondence for you. It also removes the anxiety of worrying about a third party statutory agent failing to receive correspondence and Service of Process and pass important documents along to you.\u00a0<\/span><\/p>\n The primary challenge of serving as your own statutory agent is that you\u2019ll be rooted to your office.<\/p>\n The statutory agent has a legal responsibility to be available at the listed address during normal business hours, meaning you\u2019ll technically be in breach of state law if you are frequently out of the office (lunch breaks and occasional meetings aside). The associated risk of getting caught out of the office is relatively low, but if the Arizona Corporation Commission or a Service of Process courier is repeatedly unable to reach you, the state may administratively shut down your business.<\/p>\n Other than that, the risks of being a registered agent are minimal.<\/p>\n As long as you can fulfill the state\u2019s mandate to be available in the listed location during normal business hours, it\u2019s completely acceptable to be your own registered agent. However, if you\u2019re frequently out of the office for sales appointments or regularly traveling, you should consider designating a third party as the statutory agent.\u00a0<\/span><\/p>\n Once you\u2019ve made the decision to be your own statutory agent, the registration process is easy. As you\u2019re preparing your Articles of Incorporation (Corp) or Articles of Organization (LLC<\/a>), you\u2019ll simply need to list the statutory agent\u2019s name, address, and email address.\u00a0<\/span><\/p>\n Filing your Articles of Incorporation or Articles of Organization requires much more than your statutory agent designation, though. Depending on the complexity of your business, you may wish to consult with a small business attorney<\/a> before filing to ensure everything is in order.<\/p>\n Whether you choose to designate another business owner (referred to as a member for LLCs), employee, family member, or friend, the registration process is largely the same in Arizona. Simply list the individual\u2019s name, address, and email address on the Articles of Incorporation or Articles of Organization.<\/p>\n When hiring a Statutory Agent Service in Arizona, the agency\u2019s information is often listed in the state business registration database<\/a>. When you\u2019re e-filing your Articles, you can simply select the agency from the drop-down menu and it will autofill their information.\u00a0<\/span><\/p>\n In any case, designating a third party statutory agent does require one additional step. After submitting your business application to the state, the Arizona Corporation Commission will email the statutory agent to confirm their appointment.<\/p>\n The statutory agent will have 7 days to click on the confirmation link in the email and affirm their acceptance. Be sure to speak with this third party in advance to obtain their permission, and follow up to ensure a timely confirmation.<\/p>\nWhat is a Statutory Agent in Arizona?<\/h2>\n
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Who Can Be a Statutory Agent in Arizona?<\/h2>\n
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Should I Be My Own Statutory Agent?<\/h2>\n
How to Be Your Own Statutory Agent in Arizona<\/h2>\n
How to Designate a Third Party Statutory Agent in Arizona<\/h2>\n