Did you know that you can serve as the registered agent for your business? Even so, you may have noticed that many LLCs and corporations choose to delegate this task to registered agent services. Why do they decide not to represent themselves, and what challenges can you face if you represent your business?
Roles of the Registered Agent
Most states require that a registered agent meet the following criteria:
- They must be at least 18 years of age. If working with a registered agent service, it must have incorporation in the state your business operates,
- They must have a physical address in the state your company operates,
- They must be available during regular office hours, and
- They must reside in the state your business operates.
These requirements ensure that the registered agent can receive official correspondence. These documents include the following:
- Service of Process: Your business has a right to due process. Thus, any pending or ongoing lawsuits will result in your business receiving legal paperwork beforehand,
- Tax Notices: Failure to comply with federal or state tax laws is a crime. The state will send you notices regarding pending payments and any new changes in the tax laws,
- Compliance Documents: You must update the state with your business details within a given period. Most states require an annual report and will send reminders before the deadlines approach.
If you represent your business, you will essentially agree to meet the above roles.
Risks of Representing Your Business
The risks attached to self-representation boil down to the requirements to be a registered agent. How so?
Lack of Privacy
Per the law, all registered agents must list their addresses publicly. These records are available to the state, other authorities, and the public. So, if you decide to represent yourself, you must include your address in your LLC formation paperwork. While this may work for people who own large businesses, it may not be ideal for someone who works from home. You would have government officials showing up at your residence as this would be their point of contact with the business.
Reduced Confidentiality
Let’s assume someone sues your business. The government official tasked with serving you would show up at your business with the paperwork. It could send the wrong message to your employees and clients. It might even trigger panic as people wonder if the business will remain stable after the lawsuit.
Unavailability
A registered agent must be available to receive mail during office hours. That means you cannot leave the office unattended as you can miss out on mail. Such an option works for businesses with employees in the office. But what about small businesses? What about businesses that mainly engage in fieldwork? You might be out for a few hours only for the official to show up and find the office locked. And that would pave the way for legal problems as you would miss out on crucial paperwork.
Let’s not forget that handling your official correspondence will add to your mail, which could result in losing important notices.
What’s the Solution?
Anyone who wants to enjoy less hassle, increased confidentiality, privacy, and a healthy back and forth with government officials should use a registered agent service. You will rest assured that your mail is in good hands, and you can access it at your preferred time.
Passportology offers registered agent services with a 24/7 dashboard where you can access your mail. And you can switch to our services from self-representation or other agents at no extra cost!