It is relatively easy to register and create a corporation or LLC in Minnesota. One can go on the Minnesota Secretary of State website, follow the steps, and register a business name and type of entity. Any business formed will need to have a registered address and a registered agent.
The specific requirements for a registered address are as follows:
A business entity shall continuously maintain a registered office in this state. A registered office need not be the same as the principal place of business in this state or the principal executive office of the corporation. If the current registered office address listed in the records of the secretary of state is not an actual office location, or is solely a post office box, the business entity must provide a new registered office address that includes an actual office location and that may be also include a mailing address or post office box.
Minn. Stat. § 5.36, subd. 1. In other words, the registered office address must be an actual location (i.e., a street address), but a business may have a P.O. box as a mailing address.
Minnesota law requires a registered agent because each business needs to have a designated person (or business) to receive legal documents and service of process.
The specific requirements of a registered agent are as follows:
The registered agent may be a natural person residing in this state, a domestic corporation, or a limited liability company, or a foreign corporation or foreign limited liability company authorized to transact business in this state. The registered agent must maintain a business office that is identical with the registered office.
Minn. Stat. § 5.36, subd. 2. Any address for a registered agent must be publicly accessible, so that anyone who wants to contact the business can do so.
What Benefits Can a Registered Agent Bring to a Company?
As stated above, it is a legal requirement to have not only a registered physical address for your business, but also a registered agent. But besides the legal requirements for these two things, what benefits does a registered agent bring to a business.
First, it can bring peace of mind to a business owner that they will not miss any important government documents or notifications.
Second, it can create a buffer so a business owner will have not have to accept legal documents on their own, such as a lawsuit. Having a proper registered agent will also ensure that the business will not miss any deadlines if the company is actually sued in a lawsuit. Once a lawsuit is served on a business’ registered agent, the business has only 20 days to respond to the lawsuit. If a business as a defendant in a lawsuit fails to respond, it subjects itself to a “default” judgment. A default judgment is a binding judgment in favor of a party because of the inaction of an opposing party. While it is possible to get a default judgment overturned, it is definitely not a business strategy worth implementing. Therefore, it is very important to make sure a registered agent’s address is up to date.