When forming an LLC it is required that a registered agent and address be nominated. Many small and start-up business owners forming new LLCs are hesitant to take on additional costs and pose the question, can you be your own registered agent for an LLC? The requirement to nominate and appoint a registered agent does not mean that owners of LLCs have to appoint a third party as a registered agent. They can nominate themselves or their own businesses to be the registered agent for the LLC.
There are however some benefits in having an appointed registered agent. We will compare the benefits of both options and look at how to choose the best registered agent for a business.
Benefits of a registered agent
For new business owners that need to focus all their attention on building their business and not on extra paperwork and admin each of the following aspects are beneficial.
Registered agent would help a business and its owner stay up to date with changing laws and its compliance thereof. They will also help with staying on track with the filings of the company. A registered agent can help choose an accountant and legal professionals when the company needs it. They will keep records of all the important company documents and filings, should any be lost there is a back up for it.
A registered agent will have their address as the registered address to receive any documentation. Their address will be publicly available instead of the owners. The important benefit will be that legal documents or summons will be served at the registered agent’s address and not the address of the business or owner’s personal address. This prevents any questions from employees and family members.
Should the owner choose to nominate him/herself as the registering agent they would have to keep certain business hours and be available at the nominated address at any time for notices and papers. This restricts an owner of a company that might want to focus on growing the business like sales and marketing. The other benefits of appointing a registered agent is that a business can expand to another state and/or be formed in multiple states without the owner having to be there physically.
Peace of mind
Lastly, registered agents give business owners peace of mind. They have back ups of all the important company documents and an owner does not have to worry about loss of documents. They provide guidance when needed. They take care of all the paperwork and admin business owners should not be spending time on. Registered agents make sure the business is compliant with legalities and owners need not worry about an unexpected fine. Professional services can help an owner maintain a healthy work and personal life balance as the owner can have distinctions between their personal and business emails, flexible working hours and better privacy.
Benefits of being your own registered agent
The only plausible benefit to being an LLC’s own registered agent would be that the owners would cut on extra cost. An owner of a business would have to weigh the benefits of a registered agent with the cost thereof and decide what would be better for them and the business.
How to choose a registered agent
The registered agent a owner chooses has to have an office in the state where the LLC is registered and formed. There are also other factors owners can look at like good customer services and availability; scanning of all documents and making it available on an online platform for the owner to access at any time; reminders of annual filing and legal compliance and they have to be able to have offices in most states that if the owner wants to form a new LLC or expand it is possible.
TRUiC helps new business owners to make informed decisions on giving them information on how to choose a registered agent and recommendations on the best registered agents on their website.