Did you know that there are roughly 31.7 million small businesses in the United States of America? Forming an LLC is one of the biggest steps that you can take toward making your dream of running your own business come true. This can seem like quite an obstacle if you’re running your small business from the confines of your own home.
The law requires that an LLC use a physical address to register, and many business owners don’t want to give up their privacy when listing a business address. Using a registered agent is a great way to work around this legal requirement while getting the protection that an LLC provides.
The good news is that you’re in the right place to learn more about can you be your own registered agent and your options for your business structure. Keep reading to learn more today!
What Is a Registered Agent?
A registered agent is a person that gets appointed by an LLC to be the person that receives government correspondence, compliance documents, and service of process paperwork for your business. This is a great option if you don’t want to use your home’s physical address when you start growing your business.
The majority of states will require you to appoint a registered agent when you start forming an LLC. It’s the next step that you’ll need to take after choosing your business structure.
What Does a Registered Agent Do?
The main purpose of the registered agent is to receive important mail on behalf of the business. It’s also up to the registered agent to ensure that your business remains compliant with all laws and regulations governing LLCs.
When you hire a registered agent you’re choosing to hire a gatekeeper for your business. It doesn’t matter how large your business is, you will need to designate a registered agent when forming an LLC. They can even receive online mail for small business to make your life easier.
Can You Be Your Own Registered Agent?
You will be excited to learn that you can indeed act as your business’s registered agent. This is a great approach if you plan on starting a single-member LLC for your business structure. You can also choose another member of your business to act as the registered agent as long as this person meets a few requirements.
Your registered agent needs to be 18 years of age or older in order to qualify for this position. They also need to have a physical address in the state in which you plan on registering your business as an LLC. It’s also important that the registered agent is reachable during business hours.
This is a great option if you’re looking to save money when you’re in the early stages of forming an LLC and running a business. You can also look into hiring a professional registered agent or a service when you’re in need of a business address.
Benefits of Hiring a Registered Agent Service
Hiring a registered agent services makes a ton of sense for many small business owners that are interested in forming an LLC in the future. The purpose behind hiring a registered agent is to keep your business compliant with all laws and regulations.
It also allows you to maintain your privacy when you choose to create an LLC and you don’t want to use your home address as your business address. Here’s a closer look at some of the biggest reasons to hire a registered agent on behalf of your business.
Compliance
Your registered agent will do everything that is required of your business to keep it compliant with the changing laws and regulations in your state. They will send out consistent reminders for things like annual report filings and any notifications from official offices of government.
They will also help by keeping official copies of your business documents. This will keep your business safe in the event of natural disasters or corporate theft.
Peace of Mind
Another benefit of designating a registered agent when you create an LLC is the peace of mind that it provides. You will find that you have a lot more time to focus on running and growing your business. You won’t need to invest time in figuring out what to do with your tax documents and legal documents on top of your day-to-day business operations.
You will also enjoy a noticeable difference in your work-life balance when you hire a registered agent for your LLC. The mail that you’re receiving in your personal life will always be separate from the mail that your business receives since you’re not using your home address as your business’s physical address.
Flexibility
Your registered agent will also grant your business more flexibility when you’re getting started. Your designated agent will need to be available to receive correspondence from the government during typical business hours. You will lose a ton of flexibility if you decide to act as your own registered agent.
The registered agent will make it easy for you to choose the hours that you work. It’s a much better option than being forced to work certain hours due to legal requirements.
Privacy
Keeping your privacy when forming an LLC is a major hurdle, but choosing to hire a registered agent will allow you to avoid using your home address when getting your LLC started. The registered agent’s address is what gets filed as your business address instead.
This will prevent you from getting served a business lawsuit in person. You can also avoid having your home address listed as a public address since that is a requirement for all LLCs in the United States.
Hire a Registered Agent for Your LLC
Taking the steps to hire a registered agent when forming an LLC makes a ton of sense on multiple levels. You won’t need to use your home address as your business address, which will provide more privacy. You can also enjoy peace of mind that your business will remain compliant while giving you flexibility about your business’s hours of operation.
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