Maryland nonprofit organizations will likely need to appoint and retain a registered agent.
A registered agent receives all official paperwork from the State of Maryland, 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 Maryland.
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 a Maryland Resident Agent?
A resident agent is a professional who will serve as your organization’s representative to the Maryland State Department of Assessments and Taxation while you operate your business. Some states refer to resident agents as registered agents, statutory agents, or service of process agents.
Your resident agent typically will receive correspondence, such as compliance information and tax notifications, on behalf of your organization. Resident agents also are in charge of accepting service of process documents. This simply means your resident agent will accept the legal summons and documents on your nonprofit’s behalf in the event someone sues your nonprofit.
In Maryland, the requirements for resident agents include:
- They may be domestic or foreign individuals or business entities.
- Individuals must be Maryland residents that are at least 18 years of age.
- Business entities must be registered to operate in Maryland.
- They must have a physical address (not just a P.O. box) in Maryland.
- They must always be available at said physical address during regular business hours.
Can I Be My Own Resident Agent in Maryland?
Any individual can serve as your nonprofit’s resident agent as long as they meet the requirements listed above. You may choose to act as your nonprofit’s resident 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 resident 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 State Department of Assessments and Taxation 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 a Maryland Registered Agent Service?
Before you decide to hire a Maryland 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 Maryland nonprofit, you need to focus on doing everything you can to make it successful. Hiring a professional registered agent will allow you to focus on what’s important while the registered 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 resident 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 registered 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 Maryland 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: Resident 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 resident 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 resident 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 resident agent must be a resident of the state in which your nonprofit is incorporated. If you’re not a Maryland resident, you’ll need to hire a Maryland resident 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 registered 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, you can list their agency’s physical address on all documents.
How Do I Choose a Resident Agent in Maryland?
You must select a resident agent for your Maryland nonprofit when you file your nonprofit’s Articles of Incorporation. The Articles of Incorporation is the primary nonprofit formation document in Maryland.
Nominating a Resident Agent Online
You may file your nonprofit’s Articles of Incorporation and pay the $170 filing fee online through the Maryland Business Express. When you complete the Articles of Incorporation online, you’ll be able to nominate your nonprofit’s resident agent.
You must indicate during the online filing process that your resident agent has consented to their appointment.
Nominating a Resident Agent by Mail
To form your Maryland nonprofit by mail, download the Articles of Incorporation form, fill it out in its entirety, and submit the original plus one copy (along with the $170 filing fee) to the Maryland State Department of Assessments and Taxation. You will list your resident agent’s name and contact details in section 5.
Your resident agent must consent to their appointment by signing the Articles of Incorporation document.
How Do I Change My Nonprofit’s Resident Agent in Maryland?
Subtitle 1 of the Maryland General Corporation Law Section 2-108 mandates the following for any change of resident agent by the nonprofit:
(a) An entity required to maintain a registered office and registered agent under Section
(b) (1) A corporation may designate or change its resident agent or principal office by filing for record with the Department a certified copy of a resolution of its board of directors which authorizes the designation or change.
(2) A corporation may change the address of its resident agent by filing for record with the Department a statement of the change signed by its president or one of its vice-presidents.
(3) A designation or change of a corporation’s principal office or its resident agent or his address under this subsection is effective when the Department accepts the resolution or statement for record.
Putting It Into Practice
To legally change your Maryland nonprofit’s resident agent, simply submit the change online or fill out a Resolution to Change Resident Agent form and submit it to the Maryland State Department of Assessments and Taxation along with the $25 filing fee.
You must obtain your new resident agent’s consent to their appointment, either by indicating it during the online filing process or by having them sign the Resolution to Change document.
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 resident 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 a nonprofit’s registered agent?
In the state of Maryland, anyone 18 or older may serve as your nonprofit’s resident agent as long as they’re a state resident and available at their listed address during standard business hours during the week. We do, however, recommend all nonprofits use a registered agent service.
How much does a Maryland nonprofit registered agent cost?
Although using a registered agent service can cost your nonprofit between $50 and $300 per year, it will save you time, money, and stress in the long run.
How much does it cost to change my nonprofit’s registered agent?
Changing your Maryland nonprofit’s resident agent with the State Department of Assessments and Taxation costs $25.
What is a statutory agent?
A statutory agent is another name for a registered agent.
What is a resident agent?
A resident agent is another name for a registered agent. Maryland refers to its registered agents as resident agents.
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.