If you’re starting a new company and have begun researching LLCs and other business structures, you might be wondering: do I need a registered agent? The answer is yes. You are legally required to list a registered agent as part of your LLC or corporation.
Why Your Business Needs A Registered Agent
When you form a limited liability company (LLC) or corporation, you’re required to list a registered agent. A registered agent is a person or entity you have appointed to handle necessary government, tax and legal correspondence about your business. The main purpose of a registered agent is to ensure your business receives essential and time-sensitive information. Business entities have the right to due process when there is a lawsuit filed against them, and a registered agent ensures the owners are notified on time.
You can list yourself as a registered agent for your business, but this can pose some issues if you do not work from one physical location or are not present at the physical location you list during normal business hours. Alternatively, you can hire a registered agent service for an annual fee which could solve many of the problems listing yourself pose.
5 Reasons You Might Need to Use a Registered Agent Service
1. Official Mail Duties
It can be a burden to sift through junk mail and urgent documentation you need for your company, and many people choose to outsource this task to a service they can trust to handle official correspondence. When you hire a registered agent service, you ensure that all essential documentation gets handled and relayed to you on time.
2. You Want to Keep Your Personal Address Private
When you list yourself as a registered agent for your business, you risk exposing your personal information to public records. Hiring a registered agent will maintain a barrier of privacy between you and your business.
3. You Frequently Travel or Work Remotely
When you don’t have a physical address to list for your business, you’ll want to hire a registered agent service to make sure someone receives important correspondence regarding your business.
4.You Don’t Work Normal 9-to-5 Business Hours
A registered agent is required to be present at the listed address during normal business hours.
If your business requires that you’re working nontraditional hours, your schedule is unpredictable, or it’s simply unrealistic to ensure you’ll be present in your own location from 9 a.m. to 5 p.m. during the work week, a registered agent service can be the solution you’re looking for. These services charge an annual fee, usually between $50 and $300. This way, you’ll ensure all important documentation about your company gets relayed to you in a timely manner.
5. You Want to Expand Your Business to Other States
When you list yourself or a trusted family member as your business’s registered agent, you are confined to operating within your state. A registered agent service can be a good solution when you want to expand your company outside of your home state.
Frequently Asked Questions (FAQs)
Yes. You can list yourself as a registered agent, but keep in mind that there are potential issues with doing so. The listed registered agent must be present at the address listed to receive government, tax and legal correspondence during official business hours. You will need to include a physical address and not a P.O. box, so listing your personal information can risk exposing your personal information to public records.
Hiring a registered agent will cost you between $50 and $300 annually.
The most significant benefit to listing yourself is cost. When you list yourself, it’s completely free. However, the downsides are that you risk missing necessary documentation or correspondence and exposing your personal information to public records that will publish the address you list as part of your LLC or corporation.
