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CONSEQUENCES OF FAILING TO COMPLY WITH THE
ILLINOIS REGISTERED AGENT REQUIREMENTS.

Over the course of its existence, even the most careful and compliant corporations or LLC’s may be sued. In order to make it easier to serve process on corporations and LLCs, Illinois requires the appointment of a registered agent and registered office located within the state.

The Illinois Business Corporation Act and Illinois Limited Liability Company Act require that each corporation or limited liability company having authority to transact business in Illinois shall have and continuously maintain in this state a registered office and a registered agent.

If a corporation or LLC fails to comply with this requirement, the consequences can be quite severe. They include administrative dissolution and revocation of the right to do business.

Many times a default judgment is entered against a company because its attorney did not receive notice of a lawsuit in time to respond on the company’s behalf.

PENALTIES

If a corporation or LLC fails to comply with the registered agent requirements there can be penalties including administrative dissolution and revocation. The end-result of administrative dissolution and revocation means that the statutory powers granted to a dissolved corporation or LLC are extinguished, and a revoked foreign corporation or LLC loses the authority to transact business in Illinois. Doing business while administratively dissolved or revoked can bring about additional penalties and serious personal liability for those acting on the entities behalf, such as its shareholders, officers, directors, members and managers.

SERVICE ON SECRETARY OF STATE

When a corporation or LLC in Illinois fails to comply with the registered agent requirement, a plaintiff may effect service by serving process on the secretary of state. Although the Secretary of State is required to send a copy of process to the entity, in many cases the Secretary of State does not have a current address, thus leading to a failure to respond in time.

DEFAULT JUDGMENTS

When a corporation or LLC fails to respond to a lawsuit by the date set forth in the summons, the plaintiff can obtain a default judgment against the entity. This is a final judgment and is binding on the defendant company.

CONCLUSION

Compliance with any statutory requirement is vital for corporations and LLCs. However, compliance with the registered agent requirement found in the State’s Corporation and Limited Liability Company Acts is particularly important because of the consequences of failing to comply.
 

 

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