Understanding the Role of a Registered Agent
A registered agent is a person or business entity responsible for receiving legal documents, tax notices, and other official government communications on behalf of a business. Every registered business entity must have one to maintain compliance with state regulations.
Pros of Being Your Own Registered Agent
Cost Savings
One of the most significant advantages is the financial benefit. Professional registered agent services typically cost between $100-$300 annually. By serving as your own agent, you can redirect these funds to other aspects of your business.
Direct Control and Convenience
- Immediate access to legal documents
- No third-party delays
- Personal oversight of important correspondence
- Quick response capability to time-sensitive matters
- Direct handling of documents according to your preferences
Simplicity
For business owners who prefer to keep things simple, acting as your own registered agent can streamline operations. You won't need to coordinate with an external service or worry about miscommunications.
Cons of Being Your Own Registered Agent
Time and Availability Requirements
Being a registered agent requires you to:
- Maintain regular business hours (typically 9am-5pm)
- Be available at your registered address
- Process documents promptly
- Never miss important deliveries
Public Record and Privacy Concerns
When you act as your own registered agent, your name and address become part of the public record. As stated:
"Anyone can access your business's registered agent information through your Secretary of State's office."
Travel and Flexibility Limitations
You must ensure someone is available during business hours to receive documents, which can:
- Restrict ability to take extended vacations
- Limit business travel
- Prevent remote work
- Constrain flexible hours
Risk of Missing Important Documents
If you miss a delivery or fail to update your registered address after moving, you risk not receiving critical legal documents, which can lead to severe consequences like missing court dates or incurring fines.
Special Considerations
State Requirements
Different states have varying requirements for registered agents:
- Must be 18 years or older
- Must have a physical address in the state of registration
- Must be available during normal business hours
Multi-State Operations
If your business operates in multiple states, being your own registered agent becomes more complicated as you'll need a physical presence in each state.
Best Practices
If you decide to be your own registered agent:
- Create a robust system for processing received documents
- Maintain detailed records
- Set up backup procedures for when you're unavailable
- Stay informed about state compliance requirements
- Consider liability insurance
Alternative Options
Consider professional registered agent services like Northwest Registered Agent or Incfile if you:
- Run a home-based business
- Travel frequently
- Operate in multiple states
- Value privacy
- Need flexibility in your schedule
For more information on registered agents and their responsibilities, visit the Small Business Administration or Nolo websites.