Whether we’re talking weather, vacations, or bags of potato chips, all good things must come to an end, and that includes resident agent duties. There are numerous reasons you might need to give up your Michigan resident agent role, but only one way to resign.
Resident 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.
Fortunately, the resignation process for Michigan LLCs is fairly 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 resident agent, get all state paperwork taken care of and have a replacement agent when you hire an online registered agent service.
Notifying the Michigan LLC
Because the resident agent is an important role, your LLC will want plenty of time to find a new one, so make sure to give them advance notice of your resignation. This is not just because it’s helpful, but also because it’s required by Michigan state law.
Section 450.1243 mandates that you send a copy of your resignation to a manager or member of your LLC before sending it to the Department of Licensing and Regulatory Affairs (LARA). This gives them ample time to change their resident agent, thereby avoiding fines and penalties.
Submitting Your Resignation
Got the form? Time to fill it out. Whether you’re filing online or on paper, here’s the information you’ll need to include:
- The ID number of your LLC (use the business entity search to find it)
- Your name
- The LLC name
- Your signature
First, send it to a member or manager of your LLC, then to LARA. If you’re filing online, your form will be submitted automatically. If you’re using postal mail, send your form to:
Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
P.O. Box 30054
Lansing, MI 48909
Live near Lansing? You’re also welcome to submit it in person to 2501 Woodlake Circle, Okemos, MI 48864.
But don’t forget to pay the fee! It costs $5 to file a resignation. Online, you will pay using a credit card. By mail, include a check or money order. In person, you may pay via check, money order, or credit card (Visa, MasterCard, or Discover).
Your name won’t be erased from the record right away. After your statement is processed, you will retain resident agent duties for 30 days, unless your LLC appoints a replacement sooner. If you need it processed right away, you can request 24-hour expedited service for $100, same-day service for $200, two-hour service for $500, or one-hour service for $1,000. Otherwise, standard processing is approximately ten business days.
Handing off Your Responsibilities
When you put down your resident 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 resident agent coverage can result in severe penalties. If your company hasn’t listed a new agent by the time of their next Annual Report (due by Feb. 15 each year), it will be administratively dissolved. For this reason, it’s important to give your LLC enough forewarning to effectively change its resident agent.
Their replacement must meet Michigan’s resident agent requirements. As a reminder, a resident agent must:
- Be an individual or business entity residing in Michigan
- Have a physical Michigan address (P.O. boxes aren’t allowed)
- Have a mailing address in Michigan
- Be present at the registered office during typical business hours to receive mail and service of process
An LLC’s owner or member may serve as its resident agent, but sometimes it’s easiest to outsource the agent’s responsibilities.
We recommend using a resident agent service, which can take over resident agent duties, freeing up more time for the LLC’s managers to focus on running the business.
You do a lot for your Michigan 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 Michigan or something completely different.