Starting your own business can be extremely satisfying. In fact, 77% of entrepreneurs say they’re happier since giving up their regular jobs. Not only are you your own boss, but you can finally do what you truly love.
The path to entrepreneurship isn’t an easy one though, and it’s often filled with challenges and extra costs that add up. So you might try to DIY things so you’re not only hands-on, but you’re saving money too.
For example, you’ll need a registered agent, meaning this will be one of your questions: Can I be my own registered agent? Read on to find out the answer and more.
The Requirements to Be a Registered Agent
A registered agent is someone who can legally receive legal and tax documents for a company. In some places, they’re also known as statutory or resident agents.
Every state will have its own requirements, but in general, to be a registered agent, you can be either an individual (who’s at least 18 years old) or a business entity. Both need to be a resident of the state and have a physical address there (PO boxes don’t count either). This address is also known as the registered office.
Since the registered agent needs to receive legal correspondence, they need to be available at the listed address during regular operating hours.
Other than that, there are no other requirements to become an LLC or corporation’s registered agent.
Do I Need a Registered Agent?
Before you panic about getting a registered agent, let’s first determine if you even need one.
It’s true that in many cases, you’re legally required to appoint a registered agent. All formal business entities need one, meaning that if you have an LLC or corporation, you must name a registered agent. Common law business entities are exempt, such as sole proprietorships and general partnerships.
Can I Be My Own Registered Agent?
Now that you’ve determined that you need one, you might be wondering: Can I use myself as a registered agent? After all, it’d be very convenient, and you won’t have to trouble someone or spend extra money.
Well, anyone or any entity can be a registered agent. The only exception is that the business itself can’t do the job. So for instance, your LLC can’t be its own registered agent.
However, you as the business owner can be the LLC’s registered agent. But it’s not recommended for several reasons.
You’re Tied to the Business
Because registered agents need to be available during all business hours, you’re completely tied to your company.
While it’s your passion, you might want a break from it from time to time. But as a registered agent, you lose the freedom to sleep in, get off work early, or take a spontaneous trip.
It’ll Be Tougher to Expand
Becoming your own registered agent means it’ll be a hassle to expand your business in the future. If you move your LLC to another location, you’ll need to change your registered office address.
The last thing you need is more paperwork and bureaucracy. Using something like a registered agent service guarantees that you have a static address. That way, you won’t need to file any paperwork for years to come.
Your Address Is Public Information
This won’t seem like a big deal if you’ve rented or bought a space specifically for your company. However, if you run it from your home, then it can be problematic.
Since you have to list your address as a registered agent, this makes your home address public information. Anyone can find out where you live, including disgruntled customers. They can do anything as harmless as confront you at your home or something as dangerous as cause physical harm to you or your household.
It Doesn’t Look Professional
Normally, you’d receive mundane legal documents, so there’s nothing to really worry about. But in the worst-case scenario, your LLC might get sued.
If you’re the registered agent, then you’ll get served papers at the business address. And this means you risk your customers, employees, and business partners seeing this. It might be enough to taint their impression of you, and as a result, you’ll lose these formerly loyal people.
You Might Not Stay Compliant
As a business owner, you have to juggle a lot of things at once. If you’re the registered agent, then you’re adding even more to your responsibilities. 82% of small business owners work over 40 hours a week, so it’s likely you’re already overworked.
It’s almost inevitable that things will start slipping, especially if you don’t delegate enough work. In addition, if you don’t have prior legal and/or financial knowledge, then you’ll have to study up to do the job right, which will be even more of a time sink.
Your business may end up non-compliant, and this can end in costly fines or even your LLC closing.
Use a Registered Agent Service Instead
A registered agent service will make life a lot simpler, especially if you use Business Anywhere.
It’s quick and easy to sign up with us. It takes only a few minutes to register an account with us.
Then, you can choose the services and packages that suit your needs and budgets. We’ve got additional services to take the burdens of business ownership off your hands.
Once you make a payment, we’ll get started. We’ll notify you when we’ve appointed ourselves as your registered agent.
From there, we’ll upload all your documents on our dashboard so you can access them conveniently. You can use this dashboard to change or add services too.
Name a Registered Agent Other Than Yourself
Now you know the answer to the question, “Can I be my own registered agent” and more.
As you can see, you can be your company’s own registered agent. However, it comes with a bunch of disadvantages, which can suck the joy out of being an entrepreneur.
So to avoid these unpleasant things, have someone else be your registered agent. Or better yet, go with a professional like us.
For quality registered agent services, sign up with Business Anywhere today. We also have other services that’ll make your life easier, such as business registration and virtual mailboxes.