A registered agent may be someone having a physical address in the state where the limited liability company (LLC) was created. That is, you may act as your own registered agent. However, we usually suggest that you choose a registered agent service instead.
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What Exactly Is a Registered Agent?
A registered agent is a person or organization who is legally allowed to receive official papers on behalf of a corporation, such as tax paperwork or service of process. A resident agent or statutory agent is another term for a registered agent.
A registered agent is required in most states for an LLC, partnership, or corporation. The registered agent might be the owner of the LLC, another person, or a professional service. However, the person or service must fulfill the state’s standards.
What Is Process Service?
When a summons, or notice of a lawsuit, is served to a representative of one of the parties to the litigation, this is known as service of process. Service of process serves as a formal notice to the person being served, allowing them to be informed of the litigation and seek appropriate legal counsel.
Who Is Eligible to Be a Registered Agent?
A registered agent is anybody who:
Is at least 18 years old
Has a physical address in the state where business is done (rather than a P.O. box).
Is accessible throughout regular business hours.
A professional service may also operate as a registered agent provided the firm is permitted to conduct business in the state, has a physical address there, and an authorized person to accept official papers there during regular business hours.
Why Do I Need to Be My Own Registered Agent?
While it may be tempting to operate as your own registered agent in order to save money, doing so may wind up costing you more in the long run. This is due to the fact that a registered agent service may assist you in avoiding costs or legal troubles as a result of losing or misplacing a crucial document or notification.
How to Be Appointed as a Registered Agent
Simply put your name, address, and other relevant information on your LLC’s formation forms when you submit them to designate yourself as the registered agent. If your firm already has a registered agent, you may change it to yourself by filing a paperwork with the relevant state office.
The Drawbacks of Being Your Own Registered Agent
One disadvantage of becoming your own registered agent is the loss of privacy and time.
In terms of privacy, if you work from home and serve as your own registered agent, your home address will be included in a state-run public database. Many individuals may feel uneasy about this.
People may bring sensitive papers to your workplace (such as service of process) during business hours if you operate in an office outside your home and serve as your own registered agent.
Acting as your own registered agent necessitates time spent receiving papers and keeping track of filing deadlines, time that may be spent on other company problems.
The Advantages of Using a Registered Agent Service
There are various advantages to using a registered agent service instead of acting on your own. These are some examples:
Observance of the Law
Flexibility and peace of mind
Privacy
For further information, see Should I Use a Registered Agent Service?
Observance of the Law
A registered agent service keeps you up to speed on legal requirements like as filing dates, assists you in finding accountants and lawyers, and maintains copies of your company records.
Mind Relaxation
Hiring a registered agent service can provide you piece of mind that you are fulfilling legal standards and will relieve you of the burden of keeping track of them, which might change on a regular basis.
Flexibility
If you use a registered agent service, you may work whenever you like and don’t have to be accessible to sign papers every day of the week during typical office hours.
Privacy
If you work from home, using a registered agent service will keep your home address off of the public record. If your workplace is not in your house, confidential papers will not be delivered during working hours.