Can I be my own registered agent?

When setting up a corporation or LLC, appointing a registered agent is mandatory and choosing the right person for this role is crucial. From there, you might be wondering if you can simply name yourself as the legal representative. The short answer is yes, in most states you officially can, but this decision comes with important considerations.

Acting as your own registered agent means you’ll have to maintain regular availability during standard working hours, manage paperwork, and potentially sacrifice a degree of privacy. But before making this choice, it’s essential to understand all the implications, and in this article, we’ll explore whether it’s truly beneficial for your business needs.

What is a registered agent?

A registered agent is an individual or business entity appointed to accept official documents for your company. Such papers may include legal notices, service of process (for example, lawsuits), and important correspondence from the state or federal government. This position is vital for companies of all sizes and types, ensuring that important records are received and addressed in a timely manner.

Do I need a registered agent?

If you are the owner of a business in the US, according to the requirements, you must have a registered agent. Without adhering to these rules, your company could miss important legal notices or fail to meet compliance standards, stepping closer to serious consequences. Working for an entity, a statutory agent can be beneficial for several reasons:

1. Maintains legal compliance. A registered agent guarantees that business stays on top of state and federal requirements, helping you avoid penalties for missed paperwork.
2. Protects your privacy. By handling files on your behalf, a registered agent shields personal information from being publicly available on business records.
3. Maintains availability. With a registered agent, you don’t have to be present at the business location during regular working hours. The agent can receive important materials, even if you’re not there.
4. Manages service of process. In the event of a lawsuit, a registered agent is the one who will accept the summons and deliver it to the right person in your company.
5. Helps with document organization. A registered agent keeps track of important documents like tax notices and business registration renewals, so they don’t slip through the cracks.

Who can be a registered agent for an LLC or Corporation?

Since we’ve already covered the question “Does my business need a registered agent?,” it’s time to determine who can actually fill that role. In this case, there are a few options available for consideration. If you choose an individual, they must be a resident of the state where your company is incorporated and fulfill all the responsibilities we mentioned earlier. 

Alternatively, you can opt for a business entity, like a professional registered agent service, that is authorized to operate in the state and specializes in handling legal notices. Regardless of the choice, the main requirement is that the representative must have a physical location within the state of incorporation, as P.O. boxes are not acceptable for receiving papers.

Can you be your own registered agent?

You can be a self-appointed registered agent, as long as you meet the statutory requirements. To obtain this position, you simply need to designate yourself in your LLC or corporation’s formation documents. By naming yourself, you take on the responsibility of managing all official correspondence, including service of process and compliance records.

Pros and cons of being your own registered agent

The benefits of being your own registered agent may seem appealing at first. However, to truly see the difference, it’s worth weighing up the pros and cons before jumping to any conclusions. Let’s start with the advantages:

• Cost savings. If you’d like to manage all tasks, you can eliminate the need to pay extra $100-300 for a third-party service, which can save money in the long run.
• Full control: When managing this role yourself, you maintain complete control over the handling of legal documents and notices, being directly involved in the process.
• Convenience: By being a registered agent, you eliminate the middleman, taking advantage of the freedom to manage everything on your own schedule.

As practice shows, many small business owners tend to oversimplify the responsibilities that come with being a registered agent for their company. This is where many challenges can arise. So, when considering the downsides, we can highlight the following:

• Lack of privacy. Your name and address will be displayed in public records, exposing personal information to anyone searching online business databases.
• Increased responsibility. You need to be present during regular business hours to accept vital files and make sure they are handled correctly.
• Risk of missing important documents. If you’re unavailable or out of the office, there’s a risk of missing important papers, or compliance deadlines, which could result in penalties.
• Limited flexibility. In case your business operates irregular hours or in multiple locations, being a representative means maintaining regular availability at a physical address.

The choice is yours, but the decision matters

Despite all the information we’ve covered, the decision to be a registered agent or not ultimately comes down to you. At first, it may seem like a simple task, but trust us, as you dig deeper into the process, you’ll quickly realize how complex it can become, leaning towards hiring professionals. If you’re not afraid of the challenges described and are ready to fully commit to your business, you might consider being your own agent. However, there is a safer alternative — contact the professionals at One Source Process and confidently leave the complexities in experienced hands.