Legal Question in Business Law in California
I'd like to start a new business, a limited liability partnership. On form LLP-1, question #4, Service of process seems to be a designated person or organization that can be sued in place of the partners.
Does this mean we'd need to find another organization or person to sponsor us? Or is a legal firm required to fulfill this role, or is it just a business insurance company that fulfills this requirement?
Thank you,
4 Answers from Attorneys
You just have to designate a registered agent for service of process. A lot of entities use CT Corp
The registered agent for service of process is not sued. The LLP (or corporation or whatever) is the party being sued. The regustered agent has only the VERY limited role of being the person to receive (and sign for) the summons and complaint. There is a huge difference between being the party sued and being the person designated to receive the initial papers. For this reason, there are companies that make a business of acting as other companies' registered agent, which is a passive and routine role where they may go for years, collecting their annual charge but never receiving and forwarding a single paper/
Question 4 just asks you to identify somebody to accept service of legal papers on the LLP's behalf. The LLP would still be liable for its own debts. The designated agent would not be.
I agree with Mr. Hoffman. That section is asking you to designate someone to receive summons and complaints against the LLP. Make sure the person or company you pick will forward it to you, so you don't end up with a default judgment against the LLP.
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