Not only is a statutory agent required when forming an LLC or corporation, but you must maintain a statutory agent to keep the entity in compliance. Besides the requirement of designating a statutory agent at the time of formation, there are several reasons to have one:

Not Receiving Legal Notices – If the listed statutory agent cannot receive legal notices, this lawsuit will still proceed. If a process server is unsuccessful in reaching the company’s statutory agent, the court can proceed with the case. This could result in a judgment being placed against the business without the owners knowing.

Administrative Dissolution – In Ohio, if the business doesn’t have a statutory agent, the Ohio Secretary of State can dissolve the entity.

Penalties and Fees – By not maintaining a current statutory agent, penalties and state fees can be levied against the entity and, in some cases, the owners too. Once an entity is no longer in good standing with the state, the owners may lose their liability protection and are at risk personally.

Entity Closure – Waiting too long to remedy the lack of a statutory agent may result in administrative closure or dissolving the entity.

An Ohio statutory agent can be any resident of the state who is 18 years or older, a registered Ohio domestic business entity, or a foreign business entity authorized to do business in the state. An entity may not be its own agent.

The statutory agent needs to have a physical street address (often referred to as a registered office or principal office) in the state of Ohio. This can be your home address, the address of a family member, an accountant or attorney, the address of the business, or a professional Idaho statutory agent service. Any physical address in the state may be used, but PO Boxes and mail drop services are not acceptable since someone has to be available to sign for documents.

The agent will also need to be available to receive Service of Process (legal notice or legal document) on behalf of the business during normal business hours. Service of process refers to the delivery of legal documents, often a summons, subpoena, or lawsuit filed against an Ohio business entity. 

Yes! Any individual, business owner, member, officer, director, etc., of a business entity that meets the state of Ohio’s statutory agent requirements can be a statutory agent.

Provided one of the members or officers lives in Ohio, it is less expensive to act as your own agent rather than hiring a service. While this is the route many businesses take, there are a few reasons to consider hiring a service.

If the Business Expands to Additional Locations – If the business has a physical presence in multiple states (offices, warehouses, employees, etc.), a foreign entity registration will often need to be filed with those states. A statutory agent will need to be appointed with a physical address in each state.

Privacy – The address of the statutory agent becomes public record and is available for anybody to see. This can be especially concerning if someone is doing business on the side and they don’t want their employer to know about the business. Also, if the business is sued, the notice will be delivered to the address on file. This could mean employees, customers, or even neighbors witnessing the event. There is also the remote possibility of a vindictive litigant or upset customer showing up at your house.

Availability – Ohio requires the statutory agent to be available at the principal 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.

Due Date Reminders – Statutory agent services provide annual report reminders and updates on any state requirements.

If the statutory agent changes, the entity is required to file a change of statutory agent.

A statutory agent can be changed by submitting the Statutory Agent Update Form along with the filing fee to the Secretary of State.

The only liability a statutory agent faces is from a lack of timely transmission of correspondence. If the statutory agent is negligent in sending documents promptly, and the entity suffers a financial loss, the statutory agent is responsible for paying those damages.