In the world of business and finance, mishaps can occur anytime. When something untoward happens, a company can be sued in court because in the eyes of the law, it is a separate legal entity. In such instances, the company needs a certified statutory agent to receive the Service of Process, failing which, the State can impose a severe penalty, such as revocation of the business license. It is essential to have a statutory agent on hand at all times.
The statutory agent also receives paperwork for the annual renewal of the company’s charter. The address of the statutory agent is highly important in this regard, as he or she is the one that receives most legal documents and will then forward it to the company; the person in the company who maintains contact and receives those documents is usually the secretary. Some states do not use the term statutory agent, but rather registered agent.