Can I Be the Registered Agent for My Own LLC?
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A ton of busy work goes into registering a business. With so much going on, future business owners may be unaware of some essential items needed before getting started. Whether you’re forming a corporation or an LLC, you must have a registered agent, a person or a service appointed by the business owner to receive important documents on the owner’s behalf. This position may be unfamiliar to a new business owner, especially when you don’t have the time to think about it.
There are a few options you can consider when deciding how to handle appointing a registered agent, and you will want to put some thought into your choice before hastily deciding. Setting yourself up for success and remaining compliant starts with hiring an agent to handle some of your most important correspondence.
Due to the simplicity of the duties, many small business owners may be wondering, “can I be the registered agent on my own LLC?” This is a common thought, but perhaps the better question is whether you should be. Either way, we will discuss the role of the registered agent and whether serving as your own agent is best for your business.
What Does a Registered Agent Do?
Because it’s required, it’s important to know what a registered agent’s role is for your business. To put it simply, the registered agent acts as the person or agency who receives important legal and federal documents on behalf of your business. This may include state government deliveries such as reminders for annual reports and legal notices like service of process.
Once received, your agent will notify you of the delivery and pass on the documents to you. Depending on where you live, you may also hear this term referred to as agent for service of process or statutory agent. Regardless of title, your agent’s primary role is to look out for your business to avoid any legal complications or errors.
A reliable registered agent service also ensures your business:
- Stays Compliant – You must appoint someone to be your business’ agent in order to remain compliant. Also, the agent can take care of other legal notices that may affect the business’ compliance.
- Avoids Fines – Your registered agent will inform you of any missed deadlines, financial penalties, or lawsuits. This way, you stay on top of anything that may result in a fine.
- Gains Flexibility – Without having to worry about missing any important correspondence, you have the freedom to be away from your business anytime you need.
We will get into the details of these benefits later on.
Who Can Be a Registered Agent?
Although it may not sound like it, a registered agent can be either a person or an agency. Of course, you can even serve as your own agent. Realistically, anyone can be a registered agent since very few restrictions exist.
- Be at least 18 years old
- Must live in and possess a physical address in the state of business operation; a P.O. Box will not be accepted.
- Needs to always be available to receive deliveries from 9:00-5:00 every weekday.
Knowing this, you may be thinking this task would be better handled by multiple people, since the likelihood of an individual being constantly present may be impossible to do. This is especially difficult in regard to yourself acting as your own registered agent. This is why a registered agent service is commonly used by many different kinds of business owners, so you always have a team at your disposal.
Should You Be Your Own Registered Agent?
When you’re just starting out, functioning as your own registered agent might seem like an attractive option so you can avoid the additional expense of paying someone else to do it. However, you will need to keep some things if you want to take on the responsibility. Below we list some possible complications of taking on the burden of being your own agent.
Address
As the registered agent of a business, the address you provided will now be public record. If you’re thinking about being your own registered agent, this might not seem like a big deal if you are doing business out of a commercial building or office, but this could be inconvenient if you’re running the business from your own home. Not only would your home address be public record, but you will also be more likely to receive large amounts of junk mail. Home based businesses especially would need to be prepared for these inconveniences.
Time Commitment
Essentially the sole duty of the registered agent is to make yourself available from 9:00 to 5:00 every Monday through Friday to accept any important mail. This may seem simple enough, but if you are your own registered agent, you will need to literally be present at all times.
Hiring someone else to act as your registered agent will allow you to freely come and go as you need without the worry of missing anything. The flexibility rewarded from hiring a service would save a lot of headaches.
Expansion
If you desire to expand your business into different states sometime in the future, or perhaps your business is near a state border, and you offer your services in two states, you will need to be prepared with multiple registered agents in each state. Since you cannot be in two different places at once, you won’t have the option of being your own registered agent in this case. Think over your goals before you make any decisions. In this case, it’s best to be forward thinking from the beginning.
Enlist Help with Our Registered Agent Service at Eco-fyle
Eco-fyle’s Registered Agent Service pairs you with an agent who truly cares about your business and is willing to put in the work required to see you succeed. We provide reliable solutions you can count on in all 50 states!
We make the process of filing as an LLC both prompt and hassle-free. Work with Eco-fyle’s team of experts to have confidence in your company’s transition. Our goal is to aid individuals with the legal complexities of starting a business with our user-friendly platform. Contact us today to get started.
