A registered agent is a designated individual, legally nominated to act on behalf of the business and undertake to receive service of process and official business mail. The registered agent needs to reside in the same state as the business is registered in and can be either a member of the business or a non-related third party. Depending on what kind of business you are registered as, an agent is generally required by law and can provide many advantages to your business.

Advantages of using a registered agent

An agent is able to provide assistance to your organization and advice to your business by serving as the contact person between state officials and your business. Legally you can serve as an agent for your own company, however there are many downsides to doing this and it is generally not advisable if you can help it. Your agent’s address must be a valid business address and cannot be a P.O. Box. There must be a person at that address during normal business hours at all times to receive any important legal and financial documents on behalf of the business and aside from fact that in many states you are legally required to have an agent, they can also serve an important role in the smooth running of your business in the following areas;

Legal Compliance

Your registered agent serves an important role in reminding respective employees and owners of various important events, key filing dates and payments due as well as keep track of tax payments, lawsuits, or judgments involving your business.

Privacy

As mentioned earlier, the registered agent’s address that you provide to the state cannot be a personal address or P.O. Box, which means that there is a clear separation between your legal filings and your business documents. It is again not advisable that you serve as your own agent you will most likely need to use a personal address as your point of contact and this can put privacy at risk as this information is freely available to the public.

Flexibility

Because your registered agent’s address is different to your business address, should you decide to relocate your business, you will be able to do so without worrying that you may miss any important legal documentations or communications from the state. If you wish to form another LLC in a different state, hiring a national agent will allow you to meet the legal address condition of formation and you are also able to keep your own hours flexible as the agent will be available during the state mandated times, so that you don’t have to be.

Peace of mind

Because a state officials require a designated contact person during business hours, taking care of all relevant communications can be a full time job and you are able to manage your work life balance far better if your agent is responsible for receiving all of your business-related mail and allows you time and space to properly prepare and file all relevant information. You are also able to freely leave the office on vacation etc. without worrying about any time sensitive information that you may have missed or are unable to receive.

How to choose my Registered agent

When choosing a registered agent, as tempting as it may seem to save on the annual fee by serving as your own agent, they can play a vital role in maintaining good relations with the state and ultimately save you a substantial amount of money in penalty fees or missed legal communications. We recommend that you choose a national business agent who offers effective document and compliance management, thorough coverage through all 50 states and reliable customer service.

Should I be my own agent?

Ultimately, we don’t think it’s worth it. But if you still want to know more, you can read about it here, should I be my own agent?