Can I Be My Own Registered Agent, or Should I Hire One?

When your company becomes an official business entity, it needs a registered agent to comply with the regulations that come with that status. If your company grows rapidly, you might wonder, “Can I be my own registered agent?”

This guide will discuss your options and demonstrate why hiring a registered agent service is better for your business in the long run. 

What Is a Registered Agent?

A registered agent is someone you appoint to receive mail on your business’s behalf and promptly forward it to you. The agent must have a physical address and be available during regular business hours so other people can contact you. 

Is a registered agent required for business entities? Yes, an agent prevents large businesses from hiding behind employees if a lawsuit occurs. The party being sued must be notified before things get started. A registered agent counts as a point of contact for legal procedures. You can also use a registered agent for government purposes. 

Can I Be My Own Registered Agent?

Yes, you can be your own registered agent. To do so, you need a physical address in the same state as your business and be present at that location during business hours. Additional requirements may exist depending on the state where you’re doing business. 

Should I Be My Own Registered Agent for an LLC? 

While you can be your own registered agent, you must ask yourself if doing so is worth it.

Pros of Being a Registered Agent

So, what are the benefits of being your own registered agent?

1. Saves Money

First of all, being your own registered agent helps financially. While a registered agent service isn’t terribly expensive, every penny counts. 

2. Keeps Sensitive Information Private

Because registered agents receive government or legal documents, sensitive information could be seen by eyes outside of yours—unless you’re the agent. While most services you may hire verify registered agents, you can ensure that only you can access critical information if you’re concerned about data leaks. 

3. Speeds up the Process 

Using a registered agent service means waiting for the agent to receive and then forward your mail. If you act as your own agent, you remove that middle step, and the entire process moves faster. 

Cons of Being a Registered Agent

What are the disadvantages of being your own registered agent? 

1. Having a Public Address

If you use your home or business address as your registered agent location, your address is available to the public. Anyone with access to public records will know where you are, causing potential privacy issues. 

2. More Time Spent on Mail Sorting 

When you’re the registered agent for your company, you’re in charge of sorting mail that comes to the agent in addition to the mail you receive as an owner. That means time taken from running your business as you sort mail. This obligation also increases your chances of discarding important mail by accident. 

3. Extra Steps Added to Moving

If you choose your home address as your registered agent address, you must change your address immediately if you move. You may easily forget this during the moving process, and it could lead to significant consequences. 

4. Limits Your Time

A registered agent must be at the address listed during business hours and can’t leave—not for errands or business meetings. If you’re the registered agent, this requirement will significantly limit your time—which all entrepreneurs value as much as money. 

Why Businesses Hire Registered Agent Services

Businesses hire registered agent services for various reasons—mostly convenience. Let’s look at how hiring a registered agent service addresses the disadvantages of doing it yourself:

1. Too Much Extra Mail

As mentioned, being the registered agent for your business means more time spent sorting mail. When you hire a registered agent service, they’ll handle the incoming mail. They’ll throw away junk mail and only forward the relevant correspondence, saving time and effort. 

2. Privacy

By using a registered agent service, your address will no longer be available on public records. Instead, the address will be the agent’s location—ensuring your privacy. 

3. Business Hour Requirements

Needing to be in one place from 9 to 5 can excessively restrict business growth, especially when you’re just starting out. Hiring an agent allows you the freedom to do what you need to do during business hours, including meeting potential customers and investors. A registered agent service also helps if you have irregular business hours. 

4. Physical Address Requirements

If you have a web-based business, the need for a physical address could become a significant problem. A registered agent service solves that issue because they have a physical address, allowing you to continue your virtual business. 

5. Chain Businesses Across State Lines

If your business grows enough to have multiple state locations, it requires an agent in each state, which is impossible for you to do on your own. Registered agent services will have multiple agents available so you can have everything under one umbrella service. 

Choosing Davinci for Your Register Agent Needs

Davinci understands how running a business can pull you in many directions. That’s why we offer incorporation services and other assistance to benefit entrepreneurs—including registered agent services. 

Learn more about how Davinci can work with you regarding registered agent services. 

About Coco Quillen

Coco is the Chief Operating Officer at Davinci Virtual Office Solutions. She manages the strategic development and operational implementation of services for Davinci. She works closely with all teams to ensure customers are well taken care of.