What does a Registered Agent do?
A registered agent is someone who handles communication for a business. This communication is often legal paperwork including things like lawsuits if one should come up and other important communications from the government. A registered agent can be crucial to a company and their success especially if the business owner or managers are not as experienced with this particular type of work. The registered agent’s name and address would be listed in relation to the company and all mail would go to them. They would then communicate with the business about anything important that the company needs to address. TRUiC is a website that has all the information you’d need to make the decision. Visit their website to check out this page: registered agent.
Can I be my own Registered Agent?
In short, Yes. The real question is should you? While a lot of businesses that are just starting out may be looking to cut costs here and there to help with their bottom line, a registered agent could have a lot of work on their hands, especially as a company grows.
There are some benefits and some downfalls to a business owner being their own registered agent, but it is not impossible to do. One important thing to consider is not only how organized you are as a business owner, but do you know enough about the legal aspects of the job to do it on top of everything else you need to do as the owner?
One of the biggest perks to being your own registered agent is that you won’t have to pay any service fees. The fees can range anywhere from about $50 to $200 annually. For an established company, this is not much to worry about, but for a new company, every penny helps.
There are also some advantages to hiring a company to do the work for you. Some of the more important things to think about are flexibility, organization, and privacy. A registered agent’s name and address will be public information related to the company, so doing the job as a business owner would put your own name and physical address right on the front line. For some, this may not be a problem, but for others this will bring in alot more communication for them. This could affect the influx of junk mail, customer complaints, legal notices and more. When starting a new company, it is important to be organized so if everything is going to the business owner, who probably has a lot on their plate already, it may be too much. Another thing to consider is flexibility. A registered agent has to be available for communications coming in on a regular basis. This means they have to be at their physical address generally from 9-5 Monday through Friday. For some, this isn’t a problem but it depends on the company. If your company requires a lot of travel or you move between locations, it may not be wise for you to tie yourself to one place for the majority of your working week. Hiring someone to do the job would allow you to work wherever you need to without having to think about it or be bothered with being held down. When starting a new company, this is just one less thing to think about. Last, organization plays a large role in a registered agent’s duties. A registered agent has to be extremely organized and keep all documents and records at their fingertips. New business owners have a lot on their minds. Keeping every document exactly where it should be may be something that slips through the cracks. As someone who worked for a new business that was in it’s opening phases, I can personally vouch for the challenge it was to keep paperwork in order as we established our processes. There’s a lot of paperwork flying around the office and a lot of paperwork changing hands. It would be a problem if something got misplaced. Hiring a registered agent may help with this challenge.
Should I do it?
No one knows yourself and your strengths better than you do. If you know you can handle the responsibility and challenges of the job, go ahead and do it. It’ll save you some money and you won’t have to go through the process of finding an agent. If you have any doubts regarding your organization skills or whether or not you think you can be in one place most of the time, it may be smarter to consider hiring someone. It all depends on your business needs and capabilities.