How to Choose a Registered Agent For Your Arizona Nonprofit

Arizona nonprofit organizations will likely need to appoint and retain a registered agent. 

A registered agent receives all official paperwork from the State of Arizona, they also receive any service of process a business may be served in a lawsuit.

Choosing a registered agent for your 501(c)(3) nonprofit is the second step in our complete guide, How to Start a Nonprofit in Arizona.

Check out our other guides for a look at How to Start a Nonprofit Organization or How to Choose a Registered Agent in other states.

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What Is an Arizona Statutory Agent?

The Arizona Nonprofit Corporation Act Section 10-3501 lists the following requirements for statutory agents:

Each corporation shall continuously maintain in this state both:

  1. A known place of business that may be the address of its statutory agent.
  2. A statutory agent who may be either:

(a) An individual who resides in this state.

(b) A domestic business or nonprofit corporation formed under this title.

(c) A foreign business or nonprofit corporation authorized to transact business or conduct affairs in this state.

(d) A limited liability company formed under title 29.

(e) A limited liability company authorized to transact business in this state.

Putting It Into Practice

statutory agent is someone professional who will serve as your organization’s representative to the Arizona Corporation Commission while you operate your business. Some states refer to statutory agents as registered agents, resident agents, or service of process agents.

Your statutory agent typically will receive correspondence, such as compliance information and tax notifications, on behalf of your organization. Statutory agents also are in charge of accepting service of process documents. This simply means your statutory agent will accept the legal summons and documents on your nonprofit’s behalf in the event someone sues your nonprofit.

In most states, the requirements for statutory agents are as follows:

  1. They can be domestic or foreign individuals or business entities.
    1. Individuals must be Arizona residents that are at least 18 years of age.
    2. Business entities must be registered to operate in Arizona.
  2. They must have a physical address (not just a P.O. box) in Arizona.
  3. They must always be available at said physical address during regular business hours.

Can I Be My Own Statutory Agent in Arizona?

Any individual can serve as your nonprofit’s statutory agent as long as they meet the requirements listed above. You may choose to act as your nonprofit’s statutory agent; you may also select a member of your board of directors or a reliable friend.

If you choose to act as your organization’s statutory agent, you must understand the importance of this position. If you miss a filing deadline or lose a document, you could put your nonprofit’s compliance status at risk and the Corporation Commission could revoke your nonprofit’s corporation status.

Many nonprofits and other businesses choose to hire a professional registered agent service to ensure their organization remains in compliance at all times.

Should My Nonprofit Use an Arizona Registered Agent Service?

Before you decide to hire an Arizona registered agent service, be sure to consider the advantages and disadvantages of this approach.

Advantages

You might consider hiring a registered agent service for your nonprofit organization for several reasons. Specifically, this approach can:

  • Save You Time: When you first start your Arizona nonprofit, you need to focus on doing everything you can to make it successful. Hiring a professional registered agent service will allow you to focus on what’s important while the statutory agent takes care of all incoming mail and official notices. In addition, they’ll often remind you of upcoming important filings or deadlines.
  • Protect Your Personal Privacy and Your Business’s Reputation: Unfortunately, at some point in time, your organization may face a lawsuit. When you hire a professional registered agent service, all service of process notices will be delivered to a business address. If you act as your own statutory agent, law enforcement agents could deliver these notices to your home or your place of work, depending on the address on file.

    In addition to protecting your privacy and your business’s reputation, registered agent services are accustomed to receiving and properly handling this legal paperwork. This will help ensure your organization doesn’t lose a lawsuit on a technicality because you forgot to file something on time or you mishandled something due to not knowing how the legal system works.
  • Ensure Prompt Handling of Your Business Mail: Because a registered agent service’s primary job is to serve as a statutory agent for a number of organizations, you can be sure they’ll address any mail they receive promptly. In addition, they’ll be available during their normal business hours to answer any questions you might have about these documents.
  • Keep Your Nonprofit Compliant: You must ensure your nonprofit remains compliant with the requirements set forth by the State of Arizona and the federal government (if you successfully apply for 501(c)(3) status). Hiring a registered agent service will help ensure you don’t miss a single filing.
  • Offer Convenience: Statutory agents are required to be present at their listed address during business hours. That means hiring a registered agent service will allow you to take off work as needed and choose a flexible working schedule if desired.
  • Provide National Support: If you think you may want to grow your organization nationally, choose a national registered agent service so it can continue to support you as your business grows.

Disadvantages

The only disadvantage of hiring a registered agent service is that it costs money, whereas you could act as your own registered agent for free.

Do I Need to Hire a Professional Registered Agent Service?

While hiring a professional registered agent service can be a great idea for several reasons, it becomes essential in some situations. If you answer “yes” to any of the following questions, you should hire a registered agent service for your nonprofit.

  • Does your nonprofit keep irregular business hours? As previously noted, your nonprofit’s statutory agent must be available at their listed address during standard business hours. If your nonprofit’s operating hours fall outside the standard 9-to-5, you’ll need to hire a registered agent service.
  • Do you live out of state? Your nonprofit’s statutory agent must be a resident of the state in which your nonprofit is incorporated. If you’re not an Arizona resident, you’ll need to hire an Arizona statutory agent to represent your nonprofit.
  • Is your nonprofit located in multiple states — or will it be in the future? If your nonprofit currently operates in multiple states — or has plans to do so — you must appoint a statutory agent in every state in which it will operate. Because you obviously can’t be in two places at once, it’s essential that you hire a registered agent service.
  • Will you operate without a physical address? If you plan to solely operate your nonprofit online, or without a physical address, you won’t have a business address to list on your Articles of Incorporation and other important legal documents. By hiring a professional registered agent service, you can list their agency’s physical address on all documents.

How Do I Choose a Statutory Agent in Arizona?

For your Arizona nonprofit, you must select your statutory agent when you file your nonprofit’s Articles of Incorporation. The Articles of Incorporation is the primary nonprofit formation document in Arizona.

Nominating a Statutory Agent Online

You can file your nonprofit’s Articles of Incorporation and pay the $40 filing fee online through the Arizona Corporation Commission’s eCorp website. While completing the Articles of Incorporation online, you’ll be able to nominate your nonprofit’s statutory agent.

After you file online, the Arizona Corporation Commission will send your nominated statutory agent an email address with instructions to confirm their consent.

Nominating a Statutory Agent by Mail or in Person

To form your Arizona nonprofit by mail or in person, download Form C011 – Articles of Incorporation, fill it out in its entirety, and submit the original plus one copy (along with the $40 filing fee) to the Arizona Corporation Commission. You will list the statutory agent’s name and contact details in section 6.

Along with your Articles of Incorporation, you must submit Form M002 – Statutory Agent Acceptance, which your statutory agent must sign to consent to their appointment.

How Do I Change My Nonprofit’s Statutory Agent in Arizona?

The Nonprofit Corporation Act Section 10-3502 mandates the following for any change of registered agent by the entity:

  1. A corporation may change its known place of business or statutory agent by delivering to the commission for filing a statement of change that may be the annual report and that sets forth:
    1. The name of the corporation.
    2. If the current known place of business is to be changed, the street address of the new known place of business.
    3. If the current statutory agent is to be changed, the name and street address of the new statutory agent and the new agent’s written consent to the appointment.
  2. The statement of change shall be executed by the corporation by an officer and delivered to the commission. The change or changes set forth in the statement of change are effective on delivery to the commission for filing.
  3. If the statutory agent changes its street address, it shall give written notice to the corporation of the change and sign, either manually or by fax, and deliver to the commission for filing a statement that complies with the requirements of subsection A of this section and that recites that the corporation has been given written notice of the change. The change or changes set forth in the statement are effective on delivery to the commission for filing.

Putting It Into Practice

To legally change your Arizona nonprofit’s statutory agent, simply fill out Form C016 – Corporation Statement of Change and submit it to the Arizona Corporation Commission.

Like with your initial filing, you must submit Form M002 – Statutory Agent Acceptance to confirm that your statutory agent consents to their appointment.

Conclusion

When working in a nonprofit environment, you have more important things to focus on than checking the mail, filing legal documents, and worrying about remembering compliance deadlines. That’s what a statutory agent can do for you. When you hire a professional registered agent service, you can leave these tasks in their capable hands and truly focus on what matters most to your organization.

Frequently Asked Questions

Who can serve as my nonprofit’s registered agent?

In the state of Arizona, anyone 18 and older may serve as your nonprofit’s statutory agent, as long as they are a state resident and available at their listed address during standard business hours during the week. We do, however, recommend all nonprofits utilize a registered agent service.

How much does an Arizona nonprofit registered agent cost?

Although utilizing a registered agent service can cost your nonprofit between $50 and $300 per year, it will save your nonprofit time, money, and stress in the long run.

How much does it cost to change my nonprofit’s registered agent?

There is no cost to change your Arizona nonprofit’s statutory agent with the Arizona Corporation Commission.

What is a statutory agent?

A statutory agent is another name for a registered agent. Arizona refers to its registered agents as statutory agents.

What is a resident agent?

A resident agent is another name for a registered agent.

What is a service of process agent?

A service of process agent is another name for a registered agent.

What does “service of process” mean?

Service of process simply means receiving legal documents, such as a court summons. A court summons is a document that requires a representative of your organization to appear before a judge because of a pending lawsuit.

What is the difference between a commercial registered agent and a noncommercial registered agent?

Most states require nonprofit owners to provide their nonprofit’s registered agent’s name and address when forming your nonprofit. In some states, you will be asked whether you are electing a commercial or noncommercial registered agent. Some states refer to professional registered agents as commercial agents and individual agents as noncommercial.

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