Business Incorporation is a great way to separate personal and business assets, but whether your company is an LLC or a corporation, you must have a registered agent. This may be a business owner, another member, or a third-party service. It may be alluring to become your own registered agent, especially if you have a small business, but this is not always the best way to go. why? keep reading to find out what a Registered agent (RA) is and if you need to become a Registered agent.
PS; Non us residents can’t be a registered agent.
What does a RA do?
What do we mean by the term “Registered Agent”?
Incorporated business requires someone who is willing to be contacted for legal purposes during normal day to day business hours. things like service of process, correspondence with the state, and tax notifications (federal and state), must have a representative with a brick-and-mortar address (PO box is banned).
Can a business owner turn into a Registered Agent?
There’s nothing stopping a business owner from acting as a company’s RA, but it’s often not a good idea. If you work from home or a fixed address and stick to a regular schedule, a RA may fit your schedule. But before committing, you should ask yourself a few questions:
- Am I stuck in one place, from 8 am to 5 pm, five days a week? This may not be looked at as a problem, but if you want to freely attend business meetings, collect inventory, and make sales calls, you should not remain in one place.
- Am I well organized? To become an RA needs a considerable amount of both planning and efficiency. When it comes to your business, dealing with proceedings or tax deadlines can be unaffordable. For some entrepreneurs, the organization is part of their skill set, but for others however, it may be better to ask someone to make sure your head is in the right place.
- Does my business operate in multiple states? Businesses require a RA in every state they do business with. Many companies, especially startups, do not have the resources to have multiple buildings, and the only cost-effective way to solve the problem is to hire a registered agent.
- Am I satisfied using my home address? If you run a web-based business or work from home, you’ll need to use this as your RA address. This raises privacy concerns because the address is in the public domain, and no one wants access to a lot of spam, junk mail, or random people turning up uninvited.
- Should I protect my reputation? Are you happy to receive a subpoena or legal notice at home or at work if your company is involved in a lawsuit? For some, this is just part of a job description, but many will find it difficult and fear it could damage their reputation. Receiving RA services can help you get out of this situation.
The benefits of be becoming a Registered Agent
The most suitable reason for business owners to play RA’s role is to save costs. If your company wants to keep costs to a minimum, it’s one way to save on the cost of registered agents. Whether it’s an outside agency or a full-time employee.
It also means that nothing is filtered before it reaches you-some people don’t want this, others want to get all the information and marketing of their business directly to them.
Is it viable to be my own registered agent?
The answer to this question depends on your own individual situation. If you have a limited budget, you can put your normal working hours in one place, you’re well organized to get the job done, and you don’t really care that your address is public, there is nothing to stop you. Because it is your own RA. For example, the shopkeeper is probably fine with being his own RA.
However, as a founder and leader, entrepreneurs may be able to focus more on core issues and guide the company’s growth and direction. Everyone in the business values their time, and in many cases it is better for business owners to use their time to build and maintain their business and leave RA work to professionals.