In our last post, we covered the basics of what a registered agent is, what they do, and who can fulfill the role. If you missed it, be sure to check it out here.
If you're wondering how to choose a registered agent, this post is a great place to start. One of the first decisions you'll need to make is whether to serve as your own registered agent or hire a professional registered agent service.
Both options have advantages and drawbacks. Understanding what's involved can help you choose the best fit for your business.
Can I Act as My Own Registered Agent?
If you meet your state's requirements, the answer is yes. However, before naming yourself as your company's registered agent, there are a few important things to consider.
You Must Be Available During Business Hours
A registered agent must maintain a physical address in the state where the business is registered and be available there during normal business hours to receive service of process and other legal notices. For most people, that means being tied to a single location from 8 a.m. to 5 p.m., Monday through Friday, year-round. Business meetings, errands, appointments, vacations, and other obligations can make that difficult.Your Address Becomes Public Record
If you use your home address as your registered office, that address becomes part of the public record. For many business owners, this raises privacy concerns. It can also lead to an increase in unwanted mail, since marketers often use public business filings to build mailing lists.You'll Be Responsible for Address Updates
If you move, you'll need to update your registered agent address with the state. Depending on the state, that may require filing paperwork and paying additional fees. Failing to keep your registered agent information current can result in missed notices, penalties, loss of good standing, or even administrative dissolution of the business.The Cost Savings May Be Minimal
One advantage of acting as your own registered agent is cost savings. However, professional registered agent services are often more affordable than many business owners realize. While pricing varies by provider, services typically cost less than $200 per year per entity in most cases. For many businesses, the convenience, privacy, and peace of mind are well worth the annual fee.
What Should You Expect From a Professional Registered Agent Service?
There are many companies that offer registered agent services. However, not all providers offer the same level of experience, support, or technology.
When evaluating a registered agent company, you should expect the following:
Industry Expertise
Professional registered agents are familiar with state-specific filing requirements and regulatory obligations. Their experience can help ensure important notices and documents are handled properly.Reliable Availability
A professional registered agent maintains the required office hours and is available to receive service of process and legal correspondence on behalf of your business.A Stable Registered Office Address
Professional registered agent providers maintain a consistent physical address and handle any required updates with the state if their address changes. This removes an administrative burden from your business.Greater Privacy
Using a professional registered agent helps keep your personal address off public filings. It can also help avoid the potentially uncomfortable situation of receiving service of process at your home, office, or in front of customers or employees.Prompt Document Handling
Experienced providers can quickly recognize service of process, tax notices, annual report reminders, and other important legal documents, ensuring they are routed to the appropriate contacts promptly.Dedicated Customer Support
A quality registered agent service should provide access to knowledgeable support professionals who can answer questions and assist with your account when needed.
Which Option Is Right for Your Business?
Acting as your own registered agent may make sense if you have a stable business address, are consistently available during business hours, and don't mind your address becoming part of the public record.
However, many businesses choose a professional registered agent service for the added privacy, convenience, compliance support, and reliability.
Ultimately, the right choice depends on your business's needs and priorities.
Next Steps
If you decide that hiring a professional registered agent is the best option, the next step is choosing the right provider. Not all registered agent companies offer the same level of service, experience, or support.
Before making your decision, read our next post: How to Choose the Right Registered Agent Service for Your Business, where we cover the key factors to consider when comparing providers, including experience, compliance management, online tools, state coverage, pricing, and customer service.
If you’d like to learn more about Parasec’s registered agent service, our team is available to answer any additional questions you may have. Just fill out our online “Contact Us” form and a member of our team will get back to you shortly. If you’d like to read more about our registered agent solutions first, head over here.