All businesses, whether new or existing, in every state, are required to appoint and maintain a registered agent. A registered agent is an individual or entity that accepts service of legal documents and other important information on your behalf.
Here are 4 reasons why you should consider hiring a third-party to serve as a registered agent, instead of serving as your own registered agent:
1. Maintain Your Privacy and Anonymity: The name and address of your entity’s registered agent is public information. A simple search on your state’s secretary of state website will provide the general public with these details. In order to keep your home address private, and not accessible to the general public, we do not recommend that you list yourself as your own registered agent unless you have a formal business office.
2. You conduct business in several states: Due to the increased use of technology and greater sophistication of supply chains over the years, many companies conduct business across state lines and serve many markets with their products and services. In each state you conduct business you’re required to appoint a registered agent; it would be difficult for you to accept legal services in each market. Hiring a third party to serve as your registered agent allows you the peace of mind that you will not miss out on receiving important legal and other official documents because of geography.
3. Your Registered Agent Must be Available During Business Hours: Many states require that the registered agent be available Monday through Friday, during business hours at the listed registered office’s address. Many business owners make the mistake of listing themselves as their own registered agent, without understanding the consequences of not being available at that address. There are many risks when making yourself the registered agent. In some states, if a process server comes to your registered office address to serve a document and no one is available, the process server is allowed to place the document in first-class mail and it is deemed served (whether you actually receive it or not). As a consequence of this, you may miss out on acknowledging the receipt of an important document like an official notice of a lawsuit or violation. These important documents contain sensitive information and deadlines that you must comply with and properly respond to. If you miss these deadlines, there is a high probability the plaintiff may be awarded a default judgment because you did not timely respond to the lawsuit.
4. You run a virtual business: If you run your business in the comfort of your home, more than likely you do not want to be formally served with a lawsuit at your personal residence. Having a sheriff arrive at your home to serve you legal papers may cause embarrassment or feel like an invasion of privacy. A registered agent can afford you the opportunity to keep the potential legal aspects of your business separate from the place you consider your safe haven.
The only scenario where serving as your own Registered Agent is warranted is when: 1) you are actively involved in the management of your business and anonymity is not an issue; AND 2) you have a business office where someone on your staff is available at all times Monday through Friday, during business hours.
If you are interested in discussing whether you need a third-party registered agent, please use this link to sign up for a free discovery call with Attorney Desiree Kumar: https://tidycal.com/desiree/15-minute-discovery-call.
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