The Role of A Corporate Agent For Service of Process Explained

The Role of A Corporate Agent For Service of Process Explained

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Lance Casey & Associates

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The Role of A Corporate Agent For Service of Process Explained

When a business decides to incorporate, there are numerous things to handle, and one of them is appointing a corporate agent for service of process. The issue, however, is that many individuals do not know what it is.

A corporation or a limited liability company (LLC) is a formal business entity. According to law, it's considered as a ‘person’ independent of the shareholders. That means it acts alone, just like a person would in business. It can be sued, and it must file taxes. If sued, the shareholders can’t be named as defendants and this shield from personal liability is one of the biggest advantages of incorporating.

The business, however, must run in a certain way in order to gain corporate protection. This is loosely referred to as corporate compliance. If the firm is in compliance, then the corporate shield protects the shareholders. If it’s not the personal assets of the individuals involved can be at risk of liability. Numerous factors go into corporate compliance, and one of the most misunderstood ones is the appointment of an agent for service of process.

There’s legal fiction when it comes to corporations and LLCs. Even though they are considered as an ‘Independent person’ legally, they are clearly not flesh and blood. This often creates conflict with other fields of law. For example, an individual can only pursue a lawsuit if they serve it on the defendant. This is achieved by delivering them the lawsuit copy. However, this can be hard to do to a company as there’s no physical body.

This is why the position of the corporate agent for service of process as created. Basically, a human being is designated to act on behalf of the firm. If a person wants to sue, they deliver the legal document to the agent for service of process, who then forwards it to the appropriate person in the company.

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  • Please provide a list of each address to serve each person/entity.

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