Every LLC needs a registered agent to operate legally in every state.
However, some business owners may not know what they’re missing out on if they don’t choose the right registered agent for their LLC. You may also be putting yourself at risk of legal and financial consequences.
To help ensure you receive essential and time-sensitive information, we’ll discuss all the details you must know about registered agents.
By the end of this article, you’ll understand:
Let’s get to business!
Whether you own a small or well-established LLC, you must have a registered agent. A registered agent is a representative who receives official state documents for your business and relays them to you on time.
In particular, they deal with time-sensitive and legal papers, including registration renewal notices, subpoenas, and tax forms.
You can designate an individual or a professional entity as your registered agent. They can be a member of your family, an employee, a trusted friend, or even yourself. However, your registered agent must be:
Depending on your financial capabilities and preference, you can opt for a professional registered agent service to manage all your legal documents. However, you can also assign yourself as your own LLC’s registered agent.
Let’s compare the two choices below.
Being your own LLC registered agent is comparably less costly than hiring a registered agent. You can save more and use the extra funds on other urgent matters for your business.
If you want to monitor your paperwork closely, you’ll benefit more from being your own LLC registered agent. You won’t need to worry about other individuals or business entities seeing your confidential documents.
However, everything about your registered agent becomes a public record. That means their address and name will be available to everyone.
Thus, hiring a registered agent service is much safer when your business is home-based. Your reputation will also be safe from scrutiny since your employees and customers won’t see you receive a lawsuit in person.
Hiring a registered agent service offers more flexibility than being your own LLC registered agent. You would be able to focus more on improving your business and expanding it to different states.
Regardless of where you are, you’ll know all essential and time-sensitive documents are in the hands of your registered agent. So you can go about your day and continue doing your work without worrying about possible legal or financial consequences.
However, if you’re always physically present at your LLC’s address, it’s more convenient to be your own registered agent. You’ll save time and money with this option.
Being your own LLC registered agent and hiring a registered agent service have distinct pros and cons. But deciding which works best for your business is ultimately up to you.
You can save more money from being your own registered agent if you’re always present at your store. However, if you’re focusing on expanding your LLC to multiple states, hiring a registered agent is more suitable for your needs.