It doesn’t matter if a business registers an LLC, a corporation, or LLP in their state because a registered agent will still be needed to process their chosen business entity. If you are still deciding if you’ll be your own registered agent or hire one, continue reading to weigh their advantages and disadvantages better.
Can I Be My Own Registered Agent?
You must remember that you have more responsibility if you plan to be your own registered agent. This can also affect your time in managing your business’s everyday operations and your privacy.
Advantages of Being Your Own Registered Agent
1.You’re the Only One Who Can See Your Documents
Since you’ll be on your own, you’re the only one who can access important documents. No one else will have access to confidential information.
2.The Process is Easy
If your business operates in a single location, you can get the necessary paperwork without any problem. So, it can be impractical to get another person or agency to do this for you. Also, you don’t need to attend special training to be a registered agent.
3.You Save Money
You have to pay a registered agent around $50 to $500 every year. The amount might be insignificant to many business owners. But this amount can be more helpful when used elsewhere. Though, some incorporation services such as Zenbusiness or Northwest provide it almost for free for the first year. You can check some of the top rated registered agent services here.
Disadvantages of Being Your Own Registered Agent
1.You Have to Be Available All the Time
This is likely the primary reason why most business owners want to be something other than their own registered agents. You have to be available every single business day of the year. That means not getting to relax or go on vacations since you might end up missing a legal service.
2.You Have to Disclose If You Change Your Address
If you have to move, you need to do extra paperwork. You have to inform the secretary of state that you’ll change your address and make the relevant fee payment. You can use mail services such as Travelling mailbox to forward your documents.
3.Your Information is Public
If you become a registered agent, your address becomes public which is another issue for business owners. The address you’ll provide can’t be the same as your business address. Unless you have a business in another area, you must file your home as your address if you’re your own registered agent.
Is it Better to Hire a Registered Agent?
Some business owners choose to hire a registered agent. The companies that provide registered agents handle and manage your documents exclusively. The prices depend on what the company offers, services, and how particular they’ll be in handling your legal reminders and paperwork.
Advantages of Hiring a Registered Agent
1.They’re Available on All Business Days
Hiring a registered agent means having someone available on all business days of the year to receive and send your notices for your businesses, such as yearly reports and legal notices.
2.You Have Secured Storage for Sensitive Documents
Registered agents have a safe and offsite location to store your documents. In addition, they often forward copies of notices to you and keep the original copies. As a result, you can have peace of mind knowing that you have backup copies, which allow you to focus more on your daily business operations.
3.You Have More Time
You can better track your documentation, such as annual reports, since registered agent services remind you of it. They also receive your notices, so you don’t have to worry that no one’s available to receive them.
4.You Have More Privacy
As stated, your address becomes public information when you’re your registered agent. Therefore, you don’t need to report your address or contact details when you hire someone to be your registered agent.
Disadvantages of Hiring a Registered Agent
1.They Can Be Expensive
Registered agent services can affect your budget. Although hiring a registered agent isn’t as costly as other expenses, not all businesses can pay the hundreds of dollars that some registered agents can charge.
2.You Don’t Have Full Control of Your Documents
There are business owners who opt to organize their legal documents and are comfortable getting them privately. However, if you can better manage your business by only interacting with a few people or agencies, you might feel disturbed when another party delivers and manages your documents.
Conclusion
Although most businesses choose to get a registered agent service, some want to be their own registered agent. This is acceptable legally. But it would be best if you remembered that there’s a more considerable responsibility to it. So it’s best to keep the given advantages and disadvantages in mind before you make up your mind.
