How to choose a registered agent and the benefits of using one
What is a registered agent?
A registered agent can be a third-party individual or business entity that will act as your LLCs main point of contact with the state you are doing business with. You can act as your own registered agent or you can assign a service company to act on your behalf. Either way most states require you to designate a registered agent when you file your Articles of Organization with the Secretary of State.
Can I be my own registered agent ?
The short answer is yes you can. However there are various responsibilities that a registered agent has to perform in order to uphold an LLC’s state compliance such as making sure that all necessary documents and reports are filed on time and without any discrepancies. They also need to be available at all regular business hours in order to receive mail and official papers from 9 to 5 pm, Monday to Friday at the registered physical address. You need to make sure that you will be available during regular business hours and that you won’t have a problem with your physical address being public.
If the answer to all of the above is yes then you can successfully be your own registered agent, you might want to take a look at the TRUiC guide for more info and details to help you decide whether you can you be your own registered agent for an llc or not and help you consider the benefits that come with hiring a registered agent just as we attempt to analyze below.
The benefits of using a registered agent
Your LLC, being a separate legal entity, needs to file paperwork with the state it is registered in thus designating a registered agent takes care of the legal and administrative aspects of your business. Appointing an individual or registered agent service can have the following benefits for you and your business.
Compliance with the law
Your LLC needs to be up to date with all mandatory annual reports in order to remain compliant. This is one of the most important roles that a registered agent has, they must be able to keep your LLC updated and running smoothly so you can focus on your actual business plan and market growth. They will help you find suitable legal representatives and accountants for filing all important state documents as well as keeping copies of all documentation so nothing is lost or misplaced.
Saves you time
Hiring a registered agent also saves you time from tedious yet necessary filings with the state your LLC is registered in. Important documents are automatically received and stored so you can keep track of everything without spending a large portion of your day with administrative tasks.
A registered agent also helps you keep your personal and business mails and documents in order so you can achieve a better life-work balance.
You can also reach out to someone whenever you might be facing a problem with your annual reports or any legal documentation which also saves time and hassle.
Appointing a registered agent for your LLC means that you can enjoy your privacy and have a more credible business since you don’t have to divulge your personal address and mailing details to the public. Instead your LLC’s registered agent’s address will be listed on public record.
A different mailing address than your own is especially useful in the case of a lawsuit as you wouldn’t want to be served at your home or office in front of your employees or family.
If you choose to appoint a registered agent service you won’t need to be on call during regular working hours at your physical address. That way you will be able to focus on other important daily tasks that will help your company grow, without needing to be chained to your desk in order to receive any mail or important documents for your LLC.
When choosing a registered agent service make sure that they can provide services in all 50 states as a registered agent needs to have legal residence in the state the LLC is formed. Thus offering you the ability to form an LLC in a different state or even in multiple states. Apart from hiring a trustworthy registered agent to cover all state compliances and necessary documents you should make sure they are available to answer any and all of your questions and problems.