Whether we’re talking weather, vacations, or bags of potato chips, all good things must come to an end, and that includes statutory agent duties. There are numerous reasons you might need to give up your Arizona statutory agent role, but only one way to resign.
Statutory agents play an important role in the life of an LLC, handling sensitive legal and tax documents, so it’s essential that agents follow proper resignation procedures. Otherwise, you could leave your company with unplanned fines or penalties, and you could be individually liable.
But don’t worry! For Arizona LLCs, the statutory agent resignation process is quick and easy.
Follow these steps and the hardest part of your resignation won’t be the process itself, it’ll be saying “so long” to your former business.
Time Saving Hack: You can resign as statutory agent, get all state paperwork taken care of and have a replacement agent when you hire an online registered agent service.
Notifying the Arizona LLC
The first thing you should do – before you file any paperwork with the Arizona Corporation Commission (A.C.C.) – is let your LLC know you’re resigning. Arizona Statutes Section 10-503 dictates that resigning statutory agents must submit written notice to the LLC as part of the resignation process.
You’re only required to inform your LLC at the time that you file your official resignation form with the state; however, notifying them ahead of time will give everyone involved a chance to prepare a transition plan and statutory agent change, avoiding potential penalties for operating without an agent.
Submitting Your Resignation
Now that you’ve talked with your LLC and come up with a transition plan, it’s time to formally resign. To do so, download the “Statutory Agent Resignation” form for an LLC. There are different forms for each business type, so make sure that you use the correct one, or your filing will be rejected.
- The LLC name (must be an exact match for the name on file with the A.C.C.)
- Your name (an exact match with the A.C.C. records)
- Confirmation of whether or not the LLC’s business address is the same as your street address
- The address where you mailed your resignation notice to the LLC
- Your signature
- Confirmation of statutory agent type (individual or entity)
And you’re done! But don’t send it off just yet. Every Arizona Corporation Commission form must be submitted with a Cover Sheet to facilitate expediency in the filing process. Also, be sure to include payment for the $10 filing fee. For mailed documents, pay via check or money order made out to “Arizona Corporations Commission.” If you’d like, you can drop it off in person instead, and pay with cash or credit card. Mail or hand-deliver your documents and payment to:
Arizona Corporation Commission
1300 W. Washington St.
Phoenix, Arizona 85007
The A.C.C. regularly updates processing times on their eCorp homepage. Statutory agent resignations are typically processed in 13-15 business days. If you don’t have that kind of time, you can request expedited processing on your cover sheet for an additional $35. On average, expedited forms are processed in 8-10 business days.
You will be officially removed as the LLC’s statutory agent on the 31st day after your form is processed. Keep in mind that you may still receive documents and service of process for a month after you formally resign.
Handing off Your Responsibilities
When you put down your statutory agent responsibilities, someone else has to pick them up, or your LLC will lose its good standing with the state. Help your LLC keep its momentum by carefully planning your transition.
This starts with finding a successor who’s ready to take over right away. Even a small gap in statutory agent coverage can result in severe penalties. Any business entity, for example, that goes without a statutory agent for more than 60 days can be administratively dissolved. So, after your resignation takes effect, if the LLC goes too long without appointing a new agent, they could find themselves in trouble. This is why it’s best to develop a succession and transition plan with your company before you resign.
Once you’ve nominated a replacement, confirm that they meet Arizona’s statutory agent requirements. They must:
- Be an individual or a business entity (corporation or LLC) that resides in Arizona
- Have a physical Arizona address (P.O. boxes aren’t allowed)
- Have a mailing address in Arizona
* Foreign corporations or LLCs serving as Arizona statutory agents must have a physical address in Arizona and be authorized to transact business in the state.
We recommend using a statutory agent service, which can take over statutory agent duties, freeing up more time for the LLC’s managers to focus on running the business.
You do a lot for your Arizona LLC. You’re essentially the shield that protects it from fines, the filter that catches important documents, the conductor that keeps it on track with compliance.
Because you play such an important role, it’s crucial that you follow the resignation procedures exactly — and potentially provide a replacement agent for the business. Otherwise, you might find yourself and your LLC in hot water.
Follow this guide and you’ll be totally fine. Soon, you’ll be on to your next project, whether that’s starting a new business in Arizona or something completely different.