You’re trying to launch your amazing LLC, and among the steps on the way you’ve run into the term, “registered agent.” Now, you’re stopping to wonder what that is and if you need one.
By reading this post, you’ll learn:
- what a registered agent is.
- why you need one.
- if you can be your own registered agent.
- whether it’s better to hire a registered agent service.
Find the answer here, and get one step closer to your dream!
What is A Registered Agent?
A registered agent can be either an individual or a business entity that will accept all the tax and legal documents for your business. You may have heard them referred to as a resident agent or statutory agent. They receive service of process documents that warn you of lawsuits, government correspondence, and compliance documents.
Most states require one to be appointed whenever a new LLC, partnership, or corporation is formed.
Can I Be My Own Registered Agent?
A registered agent can be anyone who:
- is 18 years or older.
- lives in the state your business is located in.
- is available during regular business hours (in person, not just over the phone or in emails).
You could also make someone else in your LLC, a friend, or a family member your registered agent.
The main thing you’ll want to ask yourself is whether you want to do it. It will mean having to give up a flexible schedule or irregular work hours, if you have that. It’s also more work than you might imagine, and it could distract from the time and mental energy you’re trying to put into your business.
Should I Hire a Registered Agent Service?
You can use a registered agent service to handle all of those responsibilities for you.
Let’s look at the benefits:
- They’ll receive all of your official documents.
- They’ll store all of the documents, so you have them in a separate location in case of disaster.
- They’ll be available when you don’t want to or can’t be.
- Their address will be listed rather than yours or someone else you might would consider designating.
- They’ll help you stay organized and on schedule in regard to your official documents.
The only advantage to being your own registered agent is cost. You don’t have to pay yourself to do it!
There are some things to consider. Will having to take on the responsibility cost you valuable time and energy you could be spending on your business? Or will it detract from the flexibility of having your own business? If you’re really strapped for cash, you could do it yourself or designate someone you work with or know to do it for you, but it would be advisable to hire a registered agent service as soon as you’re able.