Is it Worth the Risk?

Virtual Office Vulnerability

Virtual offices are all the rage these days. Who doesn’t want a prestigious address on their letterhead without having to pay for an expensive office? However, when it comes to a registered office address, there is much more to consider than how much that address may impress others.

State laws mandate that a corporate entity must maintain both a registered agent and registered office physically located in the state in which it is registered. In addition to having a registered agent listed in the domestic home state, a company must also have a registered agent in each state where business is transacted. This requirement is intended to ensure that both the state and public have a point of contact for the business. The primary purpose of this contact is to aptly receive and quickly forward legal service of process and important notices.

A virtual office provides a company with an address to receive physical mail while conducting business at another location. More companies are using virtual offices than ever before. Many states already prohibit entities from listing post office boxes and mailbox services as registered office addresses because in-person service of process on the registered agent is not possible. Likewise, a virtual office is noncompliant in this regard and should not serve as a company’s registered office address. As the virtual office trend continues, states are explicitly prohibiting entities from listing virtual office addresses as their registered office.

Don’t run the risk by listing a virtual office address as your registered office. Instead, utilize a trusted professional nationwide registered agent service provider that gives you the national presence a company needs and helps reduce the chances of delayed receipt of vital information.

If interested in learning more about Capitol Services’ registered agent safeguards, please contact us for more information.