The Value of a Third-Party Registered Agent
The Value of a Third-Party Registered Agent
December 18, 2019

One of the most frequently asked questions business owners ask is: “Can I just serve as my own registered agent?”

While the short answer is yes, an individual may serve as the registered agent for his or her own company, there are several reasons why business owners shouldn’t serve as his or her own registered agent. Now, bear in mind, not all companies are created the same, so not all of the reasons below may apply equally to all businesses.

1. You work from home

A registered agent’s address is public record. In some states, like Delaware, it is the only address that appears in the public records of the company. That means anyone can access it, and either send solicitations or show up at your door. Using a registered agent service provider reduces the number of solicitations your business may receive and minimizes the chance that a stranger will show up at your front door.

2. You don’t have a physical place of business address

Registered agents are required to have a physical address, as opposed to a post office box because the state requires someone to be available during regular business hours. Having a post office box does not meet that requirement since the United Postal Services cannot serve as your company’s registered agent.

3. Your business doesn’t operate during regular business hours

A registered agent for a business is required to be available during regular business hours to accept important documents when they are delivered. If you set your own hours, have unique hours, or if you are always on the go, not only do you fail to meet this requirement, but you might also miss critical communications. Having a third-party registered agent means that they will receive the crucial documents ensuring they get to you. Furthermore, if your legal team is serving as your registered agent, they will be able to evaluate the communications in a more timely and efficient manner offering better legal protection.

4. You want to maintain your privacy should a legal matter arise

Although you hope for the best, anything is possible, even a lawsuit. When a business is served with a Service of Process (a document informing you that a lawsuit has been filed against you in court), it is often delivered by a process server, or a local law enforcement officer, to the address on file for the registered agent. Most people don’t want these process servers showing up at their office or place of business, especially in front of customers/clients and employees, or in the event you have a home-based business, family, friends, and neighbors. By using a third-party to serve as your registered agent, you ensure the receipt of important communications promptly and privately. Furthermore, if your legal team serves as your registered agent, they can evaluate the suit more efficiently, ensuring that a response is filed and vital deadlines aren’t missed.

5. You travel frequently

If you travel for work (or pleasure), or you are a sole proprietor without any employees, and your line of work requires you to be gone from the office all day (such as a solo plumber), having a third-party registered agent allows you to be in compliance with state requirements so you can go out and focus on your business. You may also rest assured, knowing that critical documents will still reach you.

6. Compliance

Compliance matters may not be your area of expertise or interest, and each state is different. Have a third-party serve as your registered agent helps you stay compliant, avoid unnecessary state penalties and fees, and maintain your company’s good standing in your state of qualification. Your registered agent will provide you with reminders of when your annual filings are due, and even file on your behalf, allowing you to focus on the more important stuff, a successful business.

Questions regarding registered agent services for your business? Contact Us.

 

This Blog was written by Hunter Business Law’s Advanced Certified Paralegal, Katelyn J. Dougherty.

 

DISCLAIMER: This blog is for educational purposes only and does not offer nor substitute legal advice. Additionally, this blog does not establish an attorney-client relationship and is not for advertising or solicitation purposes. Any of the content contained herein shall not be used to make any decision without first consulting an attorney. The hiring of an attorney is an important decision not to be based on advertisements or blogs. Hunter Business Law expressly disclaims any and all liability in regard to any actions, or lack thereof, based on any contents of this blog.

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