Registered agent services determine how compliant your business is, and in California, compliance can be the difference between good standing and automatic dissolution. It is thus important to have a registered agent you can rely on to receive and forward all your official and legal documents so you can act on time and avoid unnecessary penalties and fines. This guide walks you through how to change registered agent in California if your current representation is no longer suitable for your business.
Why You Might Need to Change Your Registered Agent in California?
A registered agent handles core business functions, including communications with the government and other third parties. As such, their role can impact your business operations to a large extent. Below are some reasons you may want to change registered agent in California:
- Change in availability: Suppose your current agent is no longer able to receive correspondence on behalf of your business, e.g., they are shutting down their services. You would need to appoint someone to take on this role.
- Evidence of service gaps: An agent should be reliable and professional. If you feel that your current agent is not able to live up to these standards, it’s a good idea to change registered agent in Californiaand switch to a service where your business will get the support it needs.
- Need for comprehensive services: As your business grows, you may find that you need more than just representation. Moreover, you may realize that you need representation in other areas that your current agent does not cover. Switching to a more comprehensive agent can help you keep up with your business pace.
Please note that having a registered agent is mandatory for Californian businesses, save for sole proprietorships and general partnerships. Failure to have one exposes you to compliance risks and is against the law – it can thus result in dissolution of your business. So, if you are not happy with your current agent, you must appoint another one to take their place.
How to Change Your Registered Agent in California?
A registered agent is a key part of any organization. As such, the process to change registered agent in California requires some steps which you must comply with, as follows:
a. Find an agent who matches your needs. California state laws dictate that your agent must meet the requirements below.
● They must be at least 18 years old or be a registered business in California.
● They must have a physical address in the state where they can receive correspondence in person.
● They must be available during regular business hours to accept official and legal paperwork.
In addition to these requirements, it’s best to assess what was missing in your previous representation and ensure that your new agent fills these gaps.
b. Complete the Statement of Information. The form to change your registered agent depends on the structure of your business. For example, corporations fill out Form SI-550, while LLCs fill out Form LLC-12. You can find the right form for your business by checking the California Secretary of State (SOS) business filing section, which is online.
c. Submit the form. You can make your submission in person, online, or by mail. In each case, proceed as follows:
● Online Application: Log into your California SOS account, find the form, fill it out, and upload it.
● By Mail: Print out the change of registered agent form in California, fill it out, and send it to the SOS office by mail.
● In-Person: Print out the form, fill in the required details, and hand it over in person at the SOS office.
d. Pay the Charges: The fee for your application will depend on when you make the filing and the structure of your business, e.g., LLC vs Corporation. If prompted to pay, do this when submitting your form.
e. Inform your current agent of the change. It is always advisable and courteous to inform your current agent that you are switching services. It ensures a smooth transition to the new agent.
The Secretary of State will process your request. If it is successful, you will receive confirmation of the same, allowing you to receive your business correspondence through the new agent.
How Do I Change My Registered Agent in California for an LLC?
While the process to change registered agents is often similar, there are nuances that exist for each business entity due to structural differences. Here is change registered agent in California for LLC:
- Get consent from your new agent. It’s important to ensure that your new agent meets all the state’s requirements, which include having an address in California, being available during business hours, being at least 18 years old, or being a registered business in the state. But aside from these, you should ensure that the agent matches your business needs so you won’t need to change registered agent in California for LLCin the future.
- Fill out and submit form LLC-12: This form, referred to as the Statement of Information Form, provides details about your business. By updating it with your new agent’s details, you will have nominated them to represent your business in future dealings. Here are the three ways you can go about this through the California Secretary of State (SOS):
- Online: Log into your SOS account, find the form, and complete it with accurate details before uploading it.
- Mail: Print the form from the SOS page, fill it out, and mail it to the SOS office.
- In-person: Print the form, fill it out, and submit it in person at the SOS office.
- Pay the filing fee: Updating your business information comes at a charge in some cases. If applicable, you should pay this fee when filing your paperwork.
- Inform your current agent: As you change registered agent in California for LLC, you should notify your current agent of the switch so they can prepare all the paperwork that your new agent will need.
The Secretary of State will inform you of the change once they have verified your agent’s details and determined they are capable of representing your business.
FAQs
Is There a Fee to Change the Registered Agent in California?
The process to change registered agent in California may or may not include a fee. It all depends on when you make the application. You will not pay any fee if you do it during the filing period. But if you make the change outside this period, you will pay a fee, which will vary based on the structure of your business.
How Long Does It Take to Change the Registered Agent in California?
The waiting time to change registered agent in California depends on the following factors:
- The filing mode: If you file your application online, you can have the changes in as few as 24 hours. But if you do it by mail, you could wait days to weeks before getting the change confirmation. In-person submissions often take a few days, but you might need to wait a few weeks before getting a response.
- The processing selection: You can choose to expedite the process or go with the standard options. Expedited applications have faster results.
The above also depend on the volume of applications at the time – the more they are, the longer you may need to wait.
Can I Change My Registered Agent in California at Any Time?
California state laws do not limit when you can change your agent. As such, you can do it at any time. However, you should note that doing it outside the normal filing time incurs a fee that you can avoid by filing your application during the filing period.
What Happens If I Don’t Have a Registered Agent in California?
Operating a business without a registered agent on file comes with the following risks:
- Penalties and fines: An agent serves the role of receiving all your official and legal paperwork. Without them, you miss out on important documents and can thus incur penalties for not acting on time, e.g., if you miss a filing reminder.
- Poor standing with the state: If you are constantly penalized for missing reports or late filings, you will lose your good standing with the state, which can affect your financing power and lead to the dissolution of your business.
- Loss of your business license: You are not allowed to operate a business (save for sole proprietorships and general partnerships) without a registered agent. As such, you risk losing your business license.
As such, it is best to change registered agent in California if you are unhappy with your current representation – it helps you avoid such outcomes.
Can I Be My Own Registered Agent in California?
Are you thinking of representing yourself? California state laws require that an agent meet the following requirements:
- You must be at least 18 years old or a registered business operating within the state.
- You must have a physical address in the state.
- You must be available at the physical address during regular business hours.
If you meet these criteria, you can represent your business. However, hiring a professional allows you to delegate this important role to an expert who can ensure your business meets all the compliance requirements while you concentrate on the core functions of your business.
Your business deserves reliable representation that ensures you are never at risk of avoidable fines and penalties. That’s why we at Passportology offer registered agent services across different states, allowing you to change registered agent in California. What’s more, we include all government fees in our packages, ensuring that your transition is smooth and cost-effective.