Can I Be My Own Registered Agent? (Pros & Cons Revealed)
As a business owner, you may be considering the option of being your own registered agent. Although this could save you approximately $10 each month compared to hiring a professional service, it is important that you take into account several different aspects and potential risks before making any final decisions.
The answer to the question “Can you be your own registered agent?” is yes, but it’s essential that you consider all potential pitfalls before making a definitive choice.
- What is a Registered Agent?
- Should I Be My Own Registered Agent?
- Pros and Cons of Being Your Own Registered Agent
- 6 Reasons You Shouldn’t Be Your Own Registered Agent
- Should I Hire a Registered Agent Service?
- Why Do States Require Business Entities to Have Registered Agents?
- Reasons Why Businesses Hire Registered Agent Services
What is a Registered Agent?
When launching a Limited Liability Company (LLC) or corporation, it is essential to designate an authorized agent. This person or business entity will be your go-to for receiving all crucial legal documents and forwarding them to you in a timely manner in due time.
The state wants a trusted and consistent way to connect with each business’ ownership. This is essential particularly when your company faces a lawsuit, or needs to meet ongoing compliance regulations.
If you have no registered agent, the chances of missing out on important paperwork are higher. A registered agent ensures that these documents don’t get lost in transit and reach their destination safely!
Should I Be My Own Registered Agent?
Despite the fact that you’re legally allowed to become your own registered agent, should you choose to do so, there are multiple upsides and downsides to consider. After all, if your business was formed in the state of residence where you live then nothing is stopping you from doing it. In addition, while some advantages come with serving as your own registered agent these may be shadowed by certain drawbacks too.
Pros and Cons of Being Your Own Registered Agent
To help clarify the advantages and disadvantages of acting as your own registered agent, here are some key points to consider:
6 Reasons You Shouldn’t Be Your Own Registered Agent
Naming yourself as the registered agent for your company might seem like a straightforward solution, yet it is not recommended.
You may think that taking on this responsibility of conducting business would be more economical and easy to manage, however there are various reasons why this choice could prove to be disadvantageous.
1. Sharing Your Address
When you formally register your business with the Secretary of State, you must provide a name and address for your Registered Agent. This information then becomes available to anyone searching the public record – meaning that if you are running a home-based enterprise or don’t have an office space open to the public, having your residential or registered office address or business address publicly accessible could potentially put your privacy at risk.
By enlisting the services of a Registered Agent, you can keep your personal address protected from public view by using the company’s address instead. This way, you can safeguard your privacy and maintain anonymity.
2. More Mail to Process
If you want to go the route of being your own registered agent, chances are that you’ll need to use your home address – particularly if running a business online is part of the equation. This carries the risk of privacy concerns and an influx in junk mail. By employing a Registered Agent service, not only can these issues be avoided but they will also help sort through all of the correspondence for important legal notices that mustn’t get lost among other clutter. It’s time to rid yourself from extra obligations and ensure critical documents are received quickly so don’t hesitate – hire a professional today!
With a Registered Agent service, you can avoid the possibility of having an unwelcome process server or disgruntled litigant show up at your doorstep with notice of a lawsuit – certainly not something anyone would want to deal with. The potential presence of such individuals is both disruptive and intimidating, but by employing this service, those unpleasantries become unnecessary.
3. Address Change Notices Must be Made Promptly
Are you asking yourself, “Should I be my own registered agent?” If so, keep in mind that relocating your business carries the burden of informing each state about your address change. This tiresome task may also incur a fee for every notification – fees and time add up quickly! Hence, it might be easier to hire a registered agent service instead. Not only will this save you time but could potentially cost less too!
4. Agents are Required to Keep Regular Business Hours
For businesses that cannot sustain a full-time employee to accept service of process and be available during regular business hours, hiring a Registered Agent is essential. This allows you to remain free from the restrictions of having to stay in an office all day waiting for your mail – instead, you can focus on running your business while someone else takes care of ensuring important documents are always received.
5. You Must Have an Agent in Every State
To remain in compliance with the law, it is essential to have a registered agent for your company in each state you do business. Rather than going through extensive legal and financial consequences and stress by maintaining a physical location throughout all of these states, why not make use of a reliable registered agent service? Through this route, you will be able to keep an official representative without having to hire employees or maintain any type of physical space – saving both time and money!
6. You Never Want to Miss an Important Notice
Annually investing in registered agent services to manage service of process notices and other communications is more than worth it, allowing you much needed time to focus on your business instead of constantly scanning mail for official documents.
This type of service guarantees that you won’t fail to spot or remember an essential notice, which could cost your business a fortune if you ignore pending legal action or neglect to pay taxes on time.
Should I Hire a Registered Agent Service?
By engaging a business services company to act as your registered agent, you can stay away from the majority of cons mentioned earlier. You’ll feel secure knowing that all documents are received in due time since these agents will use their own address rather than yours for greater privacy protection.
Moreover, by utilizing such professional help, you won’t need to be available during standard working hours any longer and have endless opportunities for expanding your business into multiple states!
Furthermore, registered agent services can assist you in meeting the compliance requirements of your state. For example, if necessary to submit annual reports – they will keep track of due dates and remind you when it’s time to file.
The only downside to employing a professional registered agent is cost. Prices may vary, yet you should anticipate shelling out at least $100 each year for this service.
Whether you’re launching a business in your own state or abroad, forming an LLC or corporation comes with certain compulsory requirements–a registered agent and a registered office. However, this does not necessitate that you enlist the services of a professional registered agent.
A registered agent is an individual or organization designated to accept service of process and other official mail relating to your business.
Do you know that many states allow your business to become its own registered agent? So then why bother hiring a third-party service for this task?
Why Do States Require Business Entities to Have Registered Agents?
The registered agent requirement is a crucial element of the due and legal process here. Without it, legal action taken against your business can’t progress in court without first properly notifying you through an address within the said state and being accessible during operational hours to easily reach those taking legal actions. This precludes any possibility for massive corporations to conceal behind thousands of employees while also giving courts swift access to contact you swiftly.
A registered agent is the designated point of contact between your business and state authorities and serves as a secure means for the service of process. The purpose behind this requirement is to guarantee that you have an accessible way to be contacted at all times.
Reasons Why Businesses Hire Registered Agent Services
While many small businesses (less than 10 employees) opt to forgo the services of a registered agent, there are some very compelling reasons why certain small business owners do choose to hire one. Here are the primary benefits associated with hiring a registered agent:
Although some don’t fret over this, if public records are a source of anxiety for you, then hiring a registered agent to represent your business’s behalf is an ideal solution. In the current digital landscape where ‘Big Data’ gathering and selling is rampant, it’s increasingly likely that your personal information will live on the web forever in state databases. This could be unappealing 10 years from now; therefore making sure your name and address aren’t featured publicly can provide peace of mind today.
Here are our recommended Agent service providers:
- Northwest Registered Agent service is the perfect choice for those seeking to establish a new business and gain access to a registered agent, with full LLC creation package starting at only $39 + state fees.
- When you only require a professional registered agent service, Northwest is the perfect solution. Their exceptional RA service comes at an unbeatable price of $125/year!