Should I Be My Own Registered Agent for an LLC?
Starting a new business is an exciting and daunting task. One of the first decisions you’ll need to make is whether to be your own registered agent. A registered agent is a person or business that receives legal documents on behalf of your LLC. This can include things like service of process, annual reports, and tax notices.
There are pros and cons to being your own registered agent. On the one hand, it can save you money on fees. On the other hand, it can be a hassle to keep up with the paperwork and legal requirements.
What Does a Registered Agent Do?
A registered agent is a person or business that has agreed to receive legal documents on behalf of your LLC. This includes documents such as service of process (a legal document that starts a lawsuit), annual reports, and tax notices.
The registered agent must have a physical address in the state where your LLC is formed. They must also be available to receive documents during business hours.
Pros and Cons of Being Your Own Registered Agent
Pros
- Saves money – Hiring a registered agent can cost $100 or more per year. If you are on a tight budget, being your own registered agent can be a way to save money.
- Convenience – If you are your own registered agent, you will always know where your legal documents are. You won’t have to worry about a registered agent losing your documents or failing to forward them to you.
Cons
- Liability – If you are your own registered agent, you will be personally liable for any legal documents that are not properly handled. This could include being sued or having your LLC’s assets seized.
- Hassle – Keeping up with the paperwork and legal requirements can be a hassle. You will need to make sure that your address is up to date and that you are available to receive documents during business hours.
Tips for Being Your Own Registered Agent
If you decide to be your own registered agent, there are a few things you can do to make the process easier:
- Make sure you have a physical address in the state where your LLC is formed.
- Be available to receive documents during business hours.
- Keep your address up to date with the state.
- File your annual reports on time.
- Be aware of the legal requirements for registered agents in your state.
Conclusion
Deciding whether to be your own registered agent is a personal decision. There are pros and cons to both options. If you are on a tight budget and you are comfortable with the responsibilities of being a registered agent, then doing it yourself may be a good option for you. However, if you are concerned about liability or if you don’t have the time to keep up with the paperwork, then you may want to consider hiring a registered agent.
Would you like to know more about this topic? I’d be happy to answer any questions you may have.
FAQs
Q: Can anyone be a registered agent?
A: No, a registered agent must be a resident of the state in which the LLC is formed and must have a physical address in that state.
Q: How do I change my registered agent?
A: You can change your registered agent by filing a form with the state in which your LLC is formed.
Q: What happens if I don’t have a registered agent?
A: If you don’t have a registered agent, the state may dissolve your LLC.
