The Drawbacks of Being Your Own Registered Agent
By Space Coast Daily // February 27, 2023
Starting a business is exciting and thrilling all at the same time. However, several responsibilities and obligations must be met to keep the enterprise running smoothly.
One of these responsibilities is appointing a registered agent who acts as a liaison between the company and the state government. While being your own registered agent may be a good cost-effective solution, it’s important not to make this important decision lightly. It’s critical to be aware of the potential drawbacks of this decision.
In this article, we will delve into these issues and help you make an informed decision about whether being your own registered agent is the right choice for your business. If you’re considering whether you should be a registered agent, keep reading.
Cons of assuming the role of a registered agent
You must be available during working hours.
You must be available at the office during business hours because registered agents
are expected to receive relevant correspondence and legal documents (via mail).
This means being available all day. You’ll also be unable to leave the office
early on Fridays to begin your weekend early.
2. There is a risk of missing important legal notices.
A large amount of mail, including junk mail, is delivered to a registered agent’s
address. However, if you’re preoccupied with your business, you may overlook
something such as a notice that your annual report is due or even a court date.
Another way that you may miss legal notices is if you are absent from the
office when these important documents are delivered.
3. You must give out your address.
You must provide the address and name of your Registered Agent when you file your
business formation paperwork with the Secretary of State. This address and name
your Registered Agent becomes public records once this paperwork is filed.
Suppose you work from home. Making your home address public can jeopardize your
privacy. If, on the other hand, you hire the services of a professional Registered
Agent service, the address of the company you hire will become your company’s
public address. This greatly safeguards your privacy.
4. You are only permitted to do business in your home state
Every company must have engaged a registered agent in the state where it conducts
business, and you can only expand to a new state if you designate an agent with
a physical address in that state. As a result, playing the role of your own registered agent limits you to doing business only in your home state because you cannot be in two places simultaneously. This restriction also applies to options such as appointing a family member, friend, or business associate as your agent. It even prevents you from expanding your business if you hire an account or attorney to be your registered agent. Only a professional registered agent service with locations in all 50 states can handle your growth without requiring you to hire a new registered agent.
5. Notifications for address changes must be sent out as soon as possible
If you relocate or move your business, you must notify the state of each address change, which can take time. There will likely be a fee for each notification of an address change. When you factor in the time and fees associated with dealing with these changes in address, hiring a registered agent service may be less expensive and simpler.
Final Take Away
Being your own registered agent can seem like a convenient solution, but it’s important to consider the potential drawbacks before making a decision.
From the need to be available during working hours to the risk of missing important legal notices, being your own registered agent can be a demanding responsibility. Additionally, giving out your address and being restricted from doing business in your home state can have significant impacts on your business. It’s also important to stay informed of the latest requirements and regulations and to make sure that notifications for address changes are sent out as soon as possible.
If you’re still unsure about whether being your own
registered agent is the right choice for you, visit this website to learn more.