What is a Registered Agent?
A registered agent (also known as a statutory agent or agent for service of process) is an individual or business entity responsible for receiving legal documents, tax notices, and other official correspondence on behalf of your LLC. They must maintain a physical address in the state where your business is registered and be available during regular business hours to ensure compliance with state regulations.
Pros of Being Your Own Registered Agent
Cost Savings
One of the most significant advantages is the cost savings. Professional registered agent services typically charge annual fees ranging from $100 to $300. By serving as your own agent, you can eliminate this expense, which can be particularly beneficial for startups and small businesses operating on tight budgets.
Direct Control and Privacy
- Immediate access to legal documents
- No intermediary handling sensitive information
- Direct notification of time-sensitive matters
- Better awareness of compliance requirements
- Greater control over your business's legal documents
Simplicity
For those who prefer a hands-on approach, acting as your own registered agent can simplify the process. You won't need to coordinate with an external service, and you can handle all documents and notifications personally.
Cons of Being Your Own Registered Agent
Availability Requirements
To serve as a registered agent, you must:
- Maintain a physical address in the state of registration
- Be available during normal business hours (typically 9 AM to 5 PM)
- Process documents promptly
- Never miss important deliveries
Privacy Concerns
Your personal address becomes public record when you act as your own registered agent. This information is accessible through:
- State business registries
- Public databases
- Government websites
Risk of Missing Important Documents
If you miss a service of process or other critical legal documents, you could face serious consequences:
- Default judgments
- Missed court dates
- Compliance violations
- Potential fines and penalties
Best Practices If You Choose Self-Registration
Document Management
Create a robust system for:
- Scanning and digitizing documents
- Maintaining organized files
- Tracking deadlines
- Following up on correspondence
Regular Compliance Checks
"Prevention is better than cure. Regular compliance monitoring can help avoid costly mistakes and legal issues."
Maintain a calendar for:
- Annual report deadlines
- Tax filing dates
- License renewals
- Other compliance requirements
Professional Registered Agent Services
If you decide against being your own registered agent, professional services offer:
- Nationwide Coverage: Offices in all 50 states for multi-state businesses
- Compliance Expertise: Help ensure meeting all necessary obligations
- Document Scanning and Storage: Electronic management of legal records
Popular professional registered agent services include Northwest Registered Agent, Incfile, and ZenBusiness.
For more information about registered agents and LLC compliance, visit the Small Business Administration, Nolo, or consult with a business attorney through the American Bar Association.