When it comes to forming an LLC as a business structure, you have to carry out each step carefully and as thoroughly as you can. One of those steps is hiring a registered agent. However, there is the question as to whether you can be your own self-registered agent, so in this article, we will compare both pros and cons.
What is a registered agent?
A registered agent is hired professional help that can benefit you and your company in many ways. To start with, a registered hired agent is able to handle lawsuits discreetly and notify you on their system, so that it doesn’t affect the businesses’ reputation in any way. They also handle legal documents and annual tax reporting, which helps lift the extra pressure off for a new business owner who has to juggle different tasks at the same time. You would also receive additional professional support and guidance from a registered agent and they can even direct to you legal or financial advisors.
Another benefit of hiring a registered agent is that they can help expand your business across many states and your personal address doesn’t go on the public record. The downside of hiring a registered agent is the expenses and varied fees it can come with. If you are starting out as a new business owner who is trying to cut down on costs, hiring a registered agent may not be convenient for you for the time being. Generally speaking however, registered agents offer different packages for fixed annual prices depending on the service you wish to gain from them and the state that you will be applying in.
Should I be my own registered agent?
Should I be my own registered agent? Is a very common question that can come up after researching the costs and fees for hiring professional help. It most certainly is an advantage if you are an organised person, since you are in control of all the paperwork and meeting the deadlines on time for government and federal related costs and documents.
You as a business owner can be your own registered agent for an LLC company or you can elect someone that you know. However, whoever you end up choosing will have to oblige to the general requirements set by each state. These requirements include being present at the office between government business hours (9am – 5pm) and having to accept any lawsuits in front of colleagues, friends and family.
If you do choose to be a self registered agent, you have to also consider the fact that your personal address will go on public record and that you are advised to not leave the office during the hours that you should be present, in case you miss any important deliveries.
It is also important for the self registered agent to be 18 and over, otherwise they will be rejected when applying for the LLC. It also also important for the self registered agent to have great organisational skills, time management and can work under pressure.
Hiring or choosing a registered agent is a step that cannot be missed during the registration process for an LLC. It is necessary by all laws of the states and if you fail to comply with the laws, your registration for your LLC will be rejected. You can choose to change your registered agent at any time and it is a simple paperwork procedure that can be carried out online. However, before you choose to be a self-registered agent or hire a registered agent, you need to be aware of the costs that you can maintain for a business and the time you can manage as a business owner. Whichever decision you make can determine how smoothly your business will flow and how relaxed your business environment will be. Don’t rush the decision.