Do You Need a Registered Agent?

Incorporating your US business is a pivotal step to separate personal and business matters. However, whether you’re leaning towards forming an LLC or a C-Corp, there’s a critical player you need to know about – the registered agent.

What Is a Registered Agent?

So, what exactly is a registered agent, and why is it a prerequisite for your business in all 50 states?

A registered agent is the go-to person during business hours for any legal matters from the state or the IRS. This includes service of process, correspondence, and tax notices, both at the state and federal levels. Essentially, they act as the point of contact for official documents.

The thought of being your own registered agent might cross your mind. After all, it seems like a cost-saving move, right? Let’s dive into why this might not always be the best idea.

The Registered Agent Checklist

Before deciding to wear the registered agent hat, consider the following:

1. Fixed location commitment

Are you consistently tied to one physical location from 8AM – 5PM?

If you’re always on the move for sales meetings, inventory pickups, or scouting locations, being your own registered agent might not align with your operational needs as you need to be available every day at the physical location during business hours.

2. Organizational skills

Being your own registered agent requires impeccable organizational skills. Responsiveness is key, as missing notices from the state or IRS is a big no-no.

3. Operating in multiple states

If your business operates in multiple states, get ready for a logistical challenge. Being your own registered agent means having a physical presence in each state during business hours. The easier alternative?

Hire a registered agent service to handle this efficiently.

4. Privacy concerns

Listing your personal home address as the registered agent’s address might raise privacy concerns since your address becomes public. To protect your privacy this is not a great idea as anyone will be able to see this address and they will know where you live.

No one wants unannounced junk mail showing up at their front doorstep and no one really wants people showing up at the doorstep either.

Why Opting for a Third-Party Registered Agent Is Better

As an entrepreneur and as a founder your time is the most valuable asset and saving a few bucks on being your own registered agent is not worth the hassle.

Opting for a third-party agent makes sense for 3 main reasons:

1. Privacy protection: Your personal information is kept private when using a third-party service.

2. Reliability: Prompt handling of tax notices and legal documents is assured.

3. Time efficiency: As a founder, your time is precious. Outsourcing this task allows you to focus on your core business.

Learn about doola’s registered agent services.

How to Find a Registered Agent

If you’re on the lookout for a registered agent, check your state’s website for a list of registered agent providers.

If you work with doola, you’ll have a registered agent provided to you whether or not you formed a company with us, or looking to migrate an existing business to doola.

Transferring Your Registered Agent to a New Provider

Already took on the role of your own registered agent? Don’t worry, it’s never too late to make the switch. You can transfer your registered agent to a new provider, whether through doola or another service.

Overview

In summary, while the idea of cost savings might be tempting, the cons of being your own registered agent outweigh the benefits. Privacy protection, dependable response handling, and time efficiency make opting for a third-party registered agent service the smarter choice.

After all, allowing trusted professionals to handle these responsibilities lets you focus on what you do best as a founder. Let us doola it for you!

Get Started With doola

Not sure how to proceed with forming a US company? We’ve got you! If you have any lingering questions or need more guidance, feel free to reach out.

Check out our FAQ page and the full list of our Business Solutions to see which one is right for you!

Here’s to a smooth business journey!

Suhailul Aslam
Suhailul Aslam
Contributor
doola's website is for general information purposes only and doesn't provide official law or tax advice. For tax or legal advice we are happy to connect you to a professional in our network! Please see our terms and privacy policy. Thank you and please don't hesitate to reach out with any questions.

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