If a corporation or LLC
fails to comply with this requirement, the consequences can
be quite severe. They include administrative dissolution and
revocation of the right to do business.
Many times a default judgment is entered against a company
because its attorney did not receive notice of a lawsuit in
time to respond on the company’s behalf.
If a corporation or LLC fails to comply with the registered
agent requirements there can be penalties including
administrative dissolution and revocation. The end-result of
administrative dissolution and revocation means that the
statutory powers granted to a dissolved corporation or LLC
are extinguished, and a revoked foreign corporation or LLC
loses the authority to transact business in Illinois. Doing
business while administratively dissolved or revoked can
bring about additional penalties and serious personal
liability for those acting on the entities behalf, such as
its shareholders, officers, directors, members and managers.
SERVICE ON SECRETARY OF STATE
When a corporation or LLC in Illinois fails to comply with
the registered agent requirement, a plaintiff may effect
service by serving process on the secretary of state.
Although the Secretary of State is required to send a copy
of process to the entity, in many cases the Secretary of
State does not have a current address, thus leading to a
failure to respond in time.
When a corporation or LLC fails to respond to a lawsuit by
the date set forth in the summons, the plaintiff can obtain
a default judgment against the entity. This is a final
judgment and is binding on the defendant company.
Compliance with any statutory requirement is vital for
corporations and LLCs. However, compliance with the
registered agent requirement found in the State’s
Corporation and Limited Liability Company Acts is
particularly important because of the consequences of
failing to comply.