There are about a million things you have to decide on when you start a business. Many are small, but others are more meaty like the choice of a registered agent. A registered agent is someone authorized to receive law-related paperwork on your company’s behalf, sometimes by state law. You’re the owner of your business so you might be asking, “Can I be my own registered agent?” You might be surprised at the answer.
What is a registered agent?
A registered agent is an individual or business entity registered with the state as someone who can legally receive court, legal, or process papers as an appointed agent on behalf of the company.
That means any service of process — that is, being served with a summons or other legal doc or the state sending a reminder to file an annual report form, compliance notices, or tax documents — is sent to the registered agent’s office. In other words, wherever the state can personally serve legal docs, they will send those papers. That means that the appointed registered agent must be at this location to accept the docs in person during regular business hours. You also have to have a registered agent in the state of formation. A post office box isn’t going to cut it.
Who can be a registered agent?
Basically, anyone can be a registered agent given they fit the following:
- Physical Address – A physical address must be within the same state that a business is registered in and must be available to receive documents when necessary.
- Availability – Will you be available to accept and sign documents personally during regular business hours?
- Legal Capacity – Must be able to accept and sign legal papers.
So, this is a way for entrepreneurs to hire a trusted third party to take responsibility on their behalf and keep stress away. They can also choose someone they know and trust to get this job done as a registered agent.
Do you need a registered agent?
Most states will need a registered agent for businesses, more so for LLCs and corporations. That is a way of guaranteeing the businesses can be contacted should any legal suit arise. Not having a registered agent can attract fees or fines. In worst-case scenarios, the state may dissolve the company for defaulting in this regard.
Can you be your own registered agent?
You can be your own registered agent. Business owners can legally act as their own registered agents. This is a valid and acceptable choice for those who fulfill the requirements. Still, despite the tempting choice to act as your own agent because you can save money and control what comes with it, there are pros and cons to weigh before reaching a decision.
Advantages of being your own registered agent
You can save money on the costs associated with hiring a professional service to receive legal and compliance documents. Also, receiving the documents yourself means you learn right away when your business has been served with a lawsuit or an administrative action has been taken. Furthermore, you will increase your overall business’s efficiency.
Using your business’s address as the registered agent’s address can keep your personal residence and office free from the public association. This is important if you have a home-based business and don’t want your home address in the public records.
You’ll know what the deadlines for compliance are because any correspondence or documentation from the state will be directed to you first. You are less likely to miss a deadline manually than if you wait for a third party to send you a reminder.
- Cost Savings
- Control and Awareness
- Privacy
- Simplified Processes
- Compliance Assurance
Risks of being your own registered agent
You must be available at normal business hours at the registered address to receive the documentation. This can be a limiting term if you have another job, travel repeatedly for work, or keep irregular business hours. Your information is also included in the state’s public record if you use your own home address, leaving it open for everyone to see.
Another risk is missing documents, deadlines, or a court case if you’re absent when a server comes. Moreover, it adds to your long to-do list. The more available you have to be to receive the documents, the more you have to remember.
- Constant Availability Requirement
- Public Record Exposure
- Missed Documents
- Administrative Burden
Getting a professional registered agent
Ready to take the reins of your business and maintain compliance without a hitch? Go for Workhy and use our professional registered agent services for the peace of mind you need, freeing you to focus on building your business. Our dependable, cost-effective solutions guarantee you won’t slip up on another important document or deadline.
FAQs
Here are the most asked questions on being your own registered agent.
What are the pros and cons of being my own registered agent?
Being your own registered agent saves a little money and keeps important documents in your control, but being tethered to your registered agent address, which is public record, is inconvenient and unsafe.
Can anybody be a registered agent?
Anyone with a physical address in the state can serve as a registered agent. This includes the business owner, employees, or third-party services.
Do you need a registered agent as a business owner?
A registered agent is a person or business that must have a physical address in every state where you do business. Your registered agent receives all official, legal, and state documents and acts as your legal representative.
