When you decide to open your own company, you’ll quickly realize that hiring a registered agent is top-dog when it comes to priorities. Whether you choose to hire another individual or recruit a registered agent company to take that place, you’ll want to be informed of the pros and cons of each choice. In this article, we’re going to talk specifically about the drawbacks of being your own RA.
If you’ve asked been caught asking the question, “What is a registered agent?” don’t you fret. We have all the answers for you.
A registered agent can be either an individual or another company that operates as a sort of middle man for your business. They will be tasked with receiving the essential legal documents your company will incur, dealing with any legal complaints or lawsuits, and keeping your company up to date on important deadlines.
It’s essential to keep in mind that there are benefits and drawbacks to every decision you’ll make while running your business. Failure isn’t the end, but it is crucial that you do all of your research before you run into any problems. On that note, let’s take a look at just three drawbacks of being your own registered agent.
When you agree to be your company’s registered agent, you must list your personal, physical address. You are unable to use a P.O. box, which means that your home address will be recorded for anyone to find. This might not cause any critical issues, but if you prefer to keep your personal life and doings separate from your business activities, this might pose a slight concern.
Anyone you hire to serve as your company’s registered agent should be required to maintain typical business hours. Your RA will need to be onsite at all times, within a business schedule, to intercept necessary documentation and time-sensitive messages. If you desire to hand off your business as it grows and enjoy a more relaxed business schedule, being your one registered agent may prevent you from doing so.
It is a non-negotiable requirement that your company must have a registered agent in every state that your company does business. As long as your company is only operating within your home state, you won’t run into any problems. However, if you decide to begin offering your company’s services outside of that state, you’ll need some help. This also brings to mind the fact that anytime there is an address change for your registered agent, your company must go through a laundry list of steps to complete the change. If you are your company’s RA and something within your personal life shifts so that you find yourself having to move, this has the potential to cause an upheaval in your business.
To summarize, there are pros and cons to every decision your company will make. However, you’ll be able to avoid some mistakes by putting in the effort to research these topics beforehand. There are plenty of benefits to being your own registered agent, but there are also some downsides. These might include losing your personal privacy and having your information available to a broad audience, working a surplus of hours to ensure that you have all of your legal bases covered, and potentially stretching yourself too thin, trying to be everywhere at once.
If you’ve decided to hire a professional company or another individual who appears better suited for the position, there is no shame in that. As a business owner, you can’t do everything. Reallocating a few tasks does not make you a bad business owner. It might actually help your businesses function more efficiently and relieve bits and pieces of the stress you hold as a business owner. Whichever option you choose, remember always to do your research and hand off the tasks when it seems appropriate.