Should I Be My Own Registered Agent For An LLC? Why & Why Not

So, you’re forming an LLC or a corporation, and your business formation paperwork is almost ready to go. There’s one small box left to fill out, and it’s standing between you and filing your LLC’s documents with the state: naming your registered agent. 

You can hire a registered agent service or serve as your own to be the official contact point for your company. The question is, should you be your own registered agent? We’ll explain exactly what a registered agent does — receiving critical correspondence related to your business — and help you decide whether serving as your own agent or hiring a professional service is right for you. By the end of this article, you will understand more about the role of a registered agent and can decide what’s right for you.

What does a registered agent do?

Your registered agent is an official address for your LLC and is where you may receive local, state, or federal government communications as well as communications from the general public for your LLC. Courts often give heavy weight to correspondence sent to or received by the registered agent as proof that notice was given. They make sure that your LLC gets that information. Your agent has to be available as your LLC’s point of contact during regular business hours. A registered agent might receive:

• Tax notices (local, state, and federal)
• Compliance information (about regulations, laws, and standards)
• Legal documents, like court papers and subpoenas
• Annual report notices
• Legal notices about employees (like wage garnishments)
• Correspondence from the public

Legal notifications are complete once your registered agent accepts a document. That’s true even if your agent doesn’t give the information to your LLC. 

Some third-party registered agents may provide reminders or tools to help you stay on track to file things like your annual reports on time and meet all legal deadlines. That keeps you compliant and helps to keep your LLC in good standing with the state. “In good standing” means your LLC is active, authorized to operate, and up-to-date with all financial, legal, and regulatory obligations.

Why your LLC needs a registered agent

All 50 states require LLCs to have a registered agent and you can’t finish formation without one. 

If you don’t maintain a registered agent’s information, it may lead to issues such as:

• Missing deadlines or violating rules, which could get you into legal or financial trouble 
• State penalties and fines
• Missing important communications from clients, government agencies, or the general public
• Default judgments against your LLC in lawsuits

These issues can create significant challenges for your business if not addressed. That’s why it’s so important to choose a trustworthy registered agent.

Who can be a registered agent?

The registered agent you choose has to be eligible. They have to:

• Be an adult who lives in your state (can be an owner, employee, family member, or friend) OR a professional registered agent service
• Have a physical address in your state, not a P.O. box
• Be available at the registered address during normal business hours
• Agree to be your registered agent

Should you serve as your business’s registered agent?

Some business owners choose to serve as their own registered agent, while others prefer a professional registered agent service. Before you decide, let’s look at the pros and cons of those options.

Advantages of being your own registered agent

Serving as your own agent may make sense, especially for single-member LLCs or those with limited funds. You might already keep a regular office schedule, so you’d be available during business hours anyway. Let’s look closer at the advantages:

• Lower costs (no annual service fees)
• Easier to set up (no need to find an outside service)
• You receive your own government mail and legal notices immediately
• You can manage the correspondence using your own system

Risks of being your own registered agent

Serving as your own registered agent sounds like a simple job, but it comes with responsibilities that may become more difficult to manage as your business grows. Some risks include:

• Your home address (if you work from home) would be in public records
• A process server or sheriff might deliver legal papers in front of your family, friends, or employees
• You might lose or miss important mail
• Handling official correspondence and making sure you’re compliant are more tasks added to your workload
• For multiple-member LLCs, the registered agent might not share the notices or other documents with all members (but you’d all still be responsible for them)

Sometimes, you’ll need to sign for documents when you get them. If nobody else is at the registered address to sign, it may be more difficult to take time off for vacations, illness, meetings, or even to run errands.

How to be your own registered agent

If you decide to be your own registered agent, the process is generally straightforward in many states. Let’s go over the steps for a new LLC:

• Make sure that you’re eligible 
• List your information in your LLC’s Articles of Organization
• File your Articles of Organization with your state’s Secretary of State (or other state agency)
• Be sure you’re available during normal business hours (these could vary, so be sure to find out what your state requires)

If you expand your business to other states, you’ll typically need a registered agent with a physical address in that state. That means you’d probably have to hire a professional registered agent service in all but your home state. That way, you’ll have someone there who is available to receive official documents on your behalf. 

Let’s look at what to consider when you’re looking for a professional registered agent.  

How to choose a registered agent service

Finding the right registered agent service doesn't have to be a headache. Even if you're watching your bottom line, remember that value matters more than the lowest price tag. Take a moment to weigh your options; a simple comparison chart can help you see the pros and cons clearly. Consider a service that is reliable and gives you peace of mind, not just a low bill.

Look at things like:

• Reviews, ratings, and customer comments
• How long the service has been in business
• How fast the service delivers important documents to you (digital scanning and sending is faster than regular mail)
• Whether the service lets you access your LLC’s documents through a secure online portal
• Whether the service knows your state’s regulations
• The level of compliance support (reminders and monitoring)
• Whether the service is available in more states (in case you expand your operations)

Of course, costs are a factor. Some professional registered agents offer different levels of service. When you’re looking at agent fees, be sure you compare apples to apples.

How to change your registered agent

After your LLC begins operations, you might need to change your registered agent. For example, you may start out as your own agent and decide to hire a professional service later. Make sure you find out what the rules for changing agents are in your state.

Let’s go over what you’ll need to do:

• Find a new, eligible registered agent.
• Make sure the new agent agrees to the role.
• Get a “Statement of Change” form (the name may be different in your state) from your Secretary of State.
• Complete the form and file it as directed.
• You may have to pay a filing fee (varies by state) when you submit your form.
• Inform your former registered agent of the change. (You don’t want to pay for two of them!)

In some states, you might be able to update your registered agent information when you file your annual report. 

When you make major changes in your business, like in your operating agreement, registered agent, contracts, or financing documents, it’s a good idea to get a lawyer’s input. LegalShield® membership plans make getting legal advice affordable and simple.

Get help with your business questions from LegalShield®

Choosing and maintaining a registered agent is just one part of staying compliant as a business owner. With a LegalShield® Small Business Plan, you can speak with a provider lawyer about your specific situation and get help reviewing requirements in your state. 

As a small business owner, you don’t have to navigate legal questions on your own. With a Small Business Plan, you get access to an experienced law firm for guidance on business-related legal matters.

We have three different plans to adapt to your needs, and our plans go beyond consultation. They include document review, debt collection letters, phone calls or letters made on your behalf, online notarization, and e-signatures — services that often come with high hourly costs. 

Learn more about how LegalShield® can support your business! 

Frequently asked questions

What happens if I do not have a registered agent?

You won’t be able to complete LLC formation without designating a registered agent. If your registered agent resigns, which most states allow under certain circumstances, you may receive a state default address which provides you no registered agent services.

Can a registered agent be a company?

Many companies offer professional registered agent services. As long as the company meets your state’s requirements, you can absolutely hire the service. Alternatives are serving as your own registered agent or choosing another eligible person.

Does a registered agent need to live in the state?

If the registered agent is a person, they usually have to live in the state. They have to provide a physical address where someone is present, not a P.O. box. If you hire a professional registered agent, the company must be legally authorized to operate in your state. The company would need a physical address in the state, with someone present during normal business hours.

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