Process Server Corporate Liability
When a company decides to incorporate, there are various things to handle, and among them will be appointing a corporate representative for service of process. The matter, however, is that lots of people do not know what it is.
A company or a limited liability company (LLC) is an official business entity. In accordance with law, it is regarded as a ‘person’ independent of the shareholders. That means it acts alone, just like a individual would in business. It may be sued, and taxes must be filed by it. If sued, the shareholders can’t be called defendants and this shield from personal liability is one of the biggest benefits of process server incorporating.
The business, however, must run in a certain way so as to acquire corporate protection. This is loosely referred to as compliance. If the company is in compliance, then the corporate shield protects the shareholders. When it is not the private assets of the people involved can be in danger of liability. Quite a few aspects enter corporate compliance, and one of the most misunderstood ones would be the appointment of an agent for service of process.
There’s legal fiction when it comes to corporations and LLCs. Even though they are considered as an ‘Independent individual’ legally, they’re clearly not flesh and blood. This frequently process server creates conflict with different areas of law. By way of example, someone may only pursue a lawsuit if they serve it to the defendant. This is accomplished by sending them the lawsuit copy. However, this is sometimes hard to do to your company as there’s no physical body.
This is why the place of the corporate agent for service of process as created. Fundamentally, a human being is designated to act on behalf of the firm. If a person wants to sue, then they provide the legal record to the agent for service of process, who then forwards it to the proper individual in the corporation.