Entrepreneur: Should you act as your own registered agent?

, Entrepreneur: Should you act as your own registered agent?
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Entrepreneur: Should you act as your own registered agent?

Did you know that it is not always necessary to appoint a third party as your company’s registered agent? Entrepreneurs can act as their own registered agent, or RA, on behalf of their business.

When you decide to operate as an RA, you are doing more than saving a little money for your business. That is a major responsibility. You are now legally the point of contact between business and the state. Certain requirements are expected of you in this title. There are also consequences you may face if you fail to complete certain tasks as an RA that can put your business in hot water.

Let’s take a closer look at the role of a registered agent and whether entrepreneurs should agree to act as their own agent.

What is one? Registered agent?

Registered agents are third-party individuals or organizations, designated to receive processing services on behalf of businesses from state and county agencies. When a business is formed at the state level, it is Right process. For example, if your business is to be served with a claim, they will need to be notified before being served. The RA will receive that message as they are the designated contact point.

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Don’t be too nervous reading this! Acting as an RA is more than just being informed about potential lawsuits.

The RA also receives other important paperwork on behalf of the business, like tax forms. They help organize documents to avoid losing or forgetting anything. These documents are then delivered to the business and its owners in a timely manner. This allows business owners to respond to documents and keep their paperwork up to date to stay compliant.

Registered agent requirements

If you want to become a registered agent, you need to meet certain requirements first. Here is a look at the minimum qualifications one must achieve to become act as a registered agent.

  • A real street address. This address can be your own address or the address of a third party organization, if you choose to work with one. It must be in a state where you have incorporated or formed an LLC for your business. You cannot use the Post Office Box.
  • Available during general business hours. Business hours may vary depending on the state in which you do business. For example, Florida states that companies must keep registered agent offices open from 10 a.m. to noon every day except Saturday, Sunday and public holidays. Check with your state to make sure you know the general business hours for RAs and note that you must be ready to receive documents within this timeframe.
  • State residency. If you decide to operate as your own registered agent, you must actually be a resident of the state.

Should I become my own registered agent?

This is a difficult question to answer, and no one can tell you whether becoming your own RA is your best bet, without insight into your personal and business situation. your career.

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In general, however, entrepreneurs should thoroughly examine the requirements for becoming an RA before making a decision.

Entrepreneurship, especially in its early days, meant wearing a lot of different hats. You may be working odd hours. Perhaps you will be attending meetings or traveling during general business hours. Your business may not even have a physical location. Or, the company may be conducting business outside of its formation.

There is also a separate issue of accepting documentation and trying to keep up with things on your own. This is a time-consuming role. It requires attention to detail and meeting deadlines. While some entrepreneurs can easily tackle these tasks, others will need extra help.

Need help? Consider working with Third-party registered agent service

If you’re worried that you won’t be able to do everything RA needs, there’s some good news. There are many third-party organizations that are proficient in acting as your designated registered agent.

Working with a trusted and trusted third-party RA can be more beneficial, if not more beneficial, than doing it yourself. You’ll get the peace of mind knowing a competent individual is handling your paperwork instead of worrying that you’re missing out on gathering and organizing important documents.

There is also an extra layer of security when working in conjunction with a third-party RA. If you operate as your own registered agent, you need to be prepared to receive personal documents in a public setting. You may have employees, suppliers, or customers present. For example, if they see you being served with a lawsuit publicly, it could negatively impact how they perceive your business. Third parties provide these documents separately, giving your business an extra layer of security.

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One final note on registered dealers

Not every business needs an RA. While most states require a registered agent service after you establish your business, appointment is not required by each status.

That’s why you should check with the state where you do business. Make sure it’s a requirement for your business before proceeding to determine if you or a third party will act as your RA.

Fundbox and its affiliates do not provide tax, legal or accounting advice. This document has been prepared for informational purposes only, is not intended to provide, and should not be relied upon as tax, legal or accounting advice. You should consult with tax, legal and accounting advisors before engaging in any transaction.

NESA photo by Makers on Unsplash.

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