| First time business owners who form a corporation or | | | | 2. Your registered agent address is public and, in most |
| LLC are faced with a many new legal concepts, one | | | | states, searchable online. If you operate a business |
| being the "registered agent". | | | | where you desire some measure of anonymity, and |
| In particular, if you use an online service to form your | | | | do not want your home address displayed for all the |
| corporation or LLC, you are asked if you want to | | | | world to see, then you might not want to act as your |
| purchase a registered agent service, usually costing | | | | own registered agent. |
| upwards of $100/yr. | | | | 3. If your corporate form is an LLC, this advantage |
| Before you open your wallet, however, you probably | | | | applies. An LLC's ownership is not public information. |
| have a few questions. | | | | This can be a big advantage for a variety of reasons. |
| - What is a "registered agent"? | | | | For example, you don't want your competitors to |
| - What does he/she do? | | | | know that you are backing a new business. On most |
| - And most importantly, does my company need one? | | | | state's websites, you can search by companies by |
| A registered agent (aka resident agent) is the person | | | | registered agent, meaning that anyone can type in |
| assigned to receive service of process for your LLCs | | | | your name and see every company which you are |
| or corporation. | | | | the registered agent for. If you use a registered agent |
| You see, a corporation or LLC is technically a | | | | service, your name is not on that website, and you can |
| separate legal entity from you, its owner. Therefore, in | | | | keep your involvement in a company private. |
| order to serve official papers (such as a lawsuit or | | | | 4. Remember the part above about "service of |
| subpoena) on a corporation or LLC, someone must be | | | | process"? This means being sued. Most businesses will |
| designated to recieve that service on behalf of the | | | | be involved in a lawsuit at some point. If you are your |
| company. That person is the registered agent. | | | | own registered agent, you will have the sheriff at your |
| A registered agent is mandatory in every state. Every | | | | house serving you with a summons and lawsuit when |
| corporation or LLC must have one. | | | | your business is sued. The neighbors will see, it will |
| The good news is, you can act as your own | | | | cause embarrassment and, if you're operating a home |
| registered agent if you choose. | | | | based business, might cause your homeowner's |
| You can list any address as your registered agent | | | | association or municipality to start sticking their nose in |
| address--home, office, vacation home, etc. You may | | | | your business (e.g. there are zoning laws against |
| not use a Post Office box--the address must be a | | | | operating a home based business, and now local |
| physical, street address. | | | | officials are alerted to your business activity). |
| It seems obvious, therefore, to act as your own | | | | Advantages Of Using An Outside Registered Agent |
| registered agent and save on registered agent fees. | | | | Service |
| However, there are downsides to acting as your own | | | | The advantages of using an outside registered agent |
| registered agent. | | | | service is avoidance of all the above. |
| Downsides To Being Your Own Registered Agent | | | | The only real downside to using a registered agent |
| 1. The list of registered agents is public information, and | | | | service is the cost, which ranges from $80-$200/yr. |
| therefore you will get a LOT of junk mail after forming | | | | Most online incorporation companies include registered |
| your company. You will be on every mailing list within | | | | agent service as part of their incorporation package |
| weeks or months. | | | | for an additional fee. |