Can I Be My Own Registered Agent?

You open an LLC, or maybe a corporation, the law requires you to designate a registered agent. Most entrepreneurs also consider becoming their own registered agent. Although this may save some money compared to hiring a professional service, it is actually not a great option and, moreover, there are a lot of things to consider before making such a decision.

Therefore, let’s take a closer look at this issue.

What Is a Registered Agent And What Is Its Functions?

A registered agent (in some states this term is defined as a statutory agent, agent for service of process, or resident agent) refers to an individual or business entity the company appoints to accept service of process (it can be compliance and legal documents, government correspondence, notifications about federal and state taxes, etc.) on behalf of a company.

For companies that are registered in one state, but physically located outside the state, registered agents are key elements connecting the state with the company. For example, you are based in Illinois, but also sell goods or provide services in Wisconsin. Hence, an appointed registered agent is the best solution.

Another reason you need a registered agent is to have a reliable mediator for the state to get information about each company’s owners. It is particularly crucial if your company is sued and you have to obtain service of process papers, or if you have any ongoing legal compliance requirements to meet.

If you don’t have a registered agent in such situations, you may risk missing important filing deadlines, like annual report filing reminders, or failing to respond to lawsuits on time, which can lead to very serious consequences.

Can I Serve As My Own Registered Agent?

From a legal standpoint, you can act as your own registered agent in case when you have a physical address in the state you have established your company. Moreover, you, as a registered agent, must meet the following requirements:

• Be at least 18 years old;
• Have a physical address in the state you are going to perform your business activities;
• Be accessible in person during regular business hours.

Nevertheless, there are several advantages and some significant disadvantages of being your own registered agent.

Pros:

• Saving your money: even though most registered agents are not very expensive, they are not free (the exception may be a free first year provided by some professional services). When you act as your own registered agent, you can save up to $100 or even more a year;
• Convenience: as long as you are at your workplace every day Monday through Friday from 9 a.m. to 5 p.m., and you don’t mind that your customers and employees will see you receive important state correspondence, then it might be comfortable for you to act as your own registered agent.

Cons:

• Personal address for public records: if you run a small business operating out of your home, you will probably have to make your home address public, so that can be a serious problem for those who want to keep their home address private;
  

• Missing important deliveries: the biggest disadvantage of working as your own registered agent is the risk of missing a document delivery, so you will not be able to protect yourself in court, and this can cause very serious consequences for your business;
  
• One-state operation: if you want to expand your business in more than one state, it won’t be possible because each state requires companies to maintain a registered agent to be a state resident.

Who Can Be a Registered Agent? (Alternative options)

If you decide not to serve as your own registered agent, you can hire another individual or even a professional service that provides registered agent services to businesses. 

Registered Agent Service

If you choose an option to hire a professional registered agent service, you don’t have to worry, because every document will be received on time. Because registered agent service providers use their own addresses instead of yours, it also ensures your privacy. What’s more, you will not have to be always available, and you can expand your business to any state you want.

Furthermore, your registered agent will monitor all the filing deadlines and inform you when the deadline approaches.

The only true downside of hiring a professional registered agent provider for you may be the cost. The prices can vary, but you should expect to spend at least $100 a year on such a service. However, some companies also provide a free agent for one year.

For more information on registered agent services, check out the best registered agent services review.

Attorney

Appointing your attorney or accountant as your registered agent is another popular option among many entrepreneurs, since they know all the nuances of your business’s operation.

However, the rates of accountants and lawyers for registered agent services are usually pretty high, compared to professional registered agent services that cost hundreds of dollars less. Besides, your lawyer may have little or no acting as a registered agent, so you will have to help them handle their responsibilities.

Friend, relative or partner

Legally, you can appoint your friends, partner, or relatives as your registered agent. However, you must realize that the person may not have enough experience, and in most cases it is not the best idea. Keep in mind that your agent’s name and address will be public, which may not be convenient for your friends or relatives.

What Are The Benefits of Hiring a Registered Agent Service?

Hiring a professional registered agent service, for example ZenBusiness, Northwest Registered Agent, or some other company, offers a number of advantages, which are as follows:

• Privacy: for example, keeping your home address out of the public record;
  

• Compliance with state law: being up-to-date on legal requirements, like filing deadlines;
  
• Peace of mind: you can focus on your business activities but not keep track of filing deadlines.