Should You Be Your Own Registered Agent

The Pros and Cons of Acting As Your Own Registered Amanuensis

Most entrepreneurs know that when yous incorporate your pocket-sized business, whether your entity is an LLC, Corporation, or C Corporation, y'all're going to need a registered agent. An RA serves every bit your point of contact between the business and the state, accepting official documents on behalf of the business and helping the company remain in compliance with state law. Your RA can be a third party service, or you may act equally your ain registered agent.

While many small business organisation owners piece of work alongside an organization, some decide that they desire to be their ain RA — and that's legally adequate. Remember that with groovy power comes swell responsibleness, on top of all of your other existing entrepreneurial duties. If you're planning to act as your ain registered agent, keep the post-obit pros and cons in mind before getting started.

Pro… It'south less expensive to designate yourself as an RA

While we can't quote you an exact toll range, acting as your own RA is going to be much less expensive than paying an outside organization for assistance. If y'all're on a tight budget, you might consider acting as your own RA for a bit.

Con…You'll need to be available during full general business hours

Think Monday through Friday during general hours of operation, like 8 AM to 5 PM. Not only will you need to be bachelor to accept service of process during these hours, but yous volition likewise need to be a resident of the country and nowadays at your designated physical address. (Some other requirement for registered agents since P.O. Boxes are not considered to be an acceptable form of address.)

While much of this volition depend on the entrepreneur'due south circumstances and nature of their small business, I placed availability in the 'con' section merely for those 'what if?' moments. Even if y'all work from home, you may notice there are days where you lot need to leave to take a meeting offsite or caput on a business organisation trip. If you lot're not physically there during the hours you said y'all would be to accept the documents, it could spell problem for your business.

Pro/Con…You'll need to be extremely organized

Some of the legal documents you may receive equally an RA include, just are not limited to, general paperwork like annual reports, franchise tax forms, and renewal reminders.

If you are naturally organized when it comes to paperwork and time-sensitive materials, then you're likely to stay on peak of everything as an RA. However, if y'all struggle with organisation and worry of import documents could slip through the cracks, y'all might want to designate a third party RA. They volition be able to go along your paperwork organized and passed along to you lot in a timely manner so your business doesn't fall out of practiced standing with the country.

Pro/Con…You're comfortable receiving confidential paperwork publicly

Every entrepreneur is different. Some aren't phased at the thought of beingness served confidential legal notices, like a court summons or lawsuit paperwork, in public. Others might be extremely embarrassed and worried that the human activity could damage their reputation. If yous autumn into the latter category, working with a registered agent service provides an added layer of security. They will accept the documents on your behalf, so that no unwanted visitors show upwardly at your designated accost, giving you and your business organization some privacy and peace of mind.

Deborah Sweeney is the CEO of MyCorporation.com. MyCorporation is a leader in online legal filing services for entrepreneurs and businesses, providing beginning-up bundles that include corporation and LLC germination, registered amanuensis, DBA, and trademark & copyright filing services. MyCorporation does all the work, making the business formation and maintenance quick and painless, and so business owners tin can focus on what they practise best. Follow her on Twitter @mycorporation.

Delight note that KPMG SPark'south sponsorship of this web log article is not intended to address the specific circumstances of any particular private or entity and does not constitute an endorsement of whatsoever entity or its products or services. This content represents the views and opinions of the author, and does not necessarily correspond the views or professional person communication of KPMG LLP.

KPMG Spark June 27, 2016 Posted In: Business Tips

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