A Registered Agent is a person or company who agrees to accept legal documents and state notices for your LLC.
In most states, you have 3 options for who can be your Registered Agent:
- You can be your own Registered Agent.
- You can ask a friend or family member.
- You can hire a Registered Agent Service.
Being your own Registered Agent has several benefits (like saving you money), but there are some potential downsides.
We’ll explain the pros and cons of being your own Registered Agent.
Pros of being the Registered Agent for your LLC
- You can save money.
- It’s one less online account to keep track of (compared to hiring a Registered Agent Service).
- Documents go directly to you.
1. Save money
Hiring a Registered Agent Service costs between $100-$300 per year.
This means you can save $100-$300 each year by being your own Registered Agent.
2. Fewer accounts to manage
Forming your own LLC requires you to set up many different accounts.
For example: You need to file with the Secretary of State to form your business. You need to register with the Department of Revenue to pay business taxes. And depending on what your business does, you may need to register with several other state and local agencies for business licenses and permits.
Additionally, if you hire a Registered Agent Service, you will need to create an account so they can send you any important documents that arrive for your LLC through your online dashboard.
Managing a lot of online business accounts can quickly feel overwhelming.
Being your own Registered Agent means you have one less account to manage (and one less password to remember).
3. Get your documents faster
Most Registered Agent Services send you any important documents that arrive for your LLC through an online dashboard. Some may also forward documents by physical mail.
While most Registered Agent Services, like Northwest Registered Agent, try to upload your documents the day they are received, some Registered Agent Services may take longer to process them. This means, you may experience delays getting your documents.
Being your own Registered Agent means your documents go directly to you.
You don’t need to wait for a Registered Agent Service to forward or email them.
Cons of being the Registered Agent for your LLC
- Registered Agent information is public record.
- You have to be available to accept Service of Process.
- You might miss an important notice or legal document.
- You could be served court documents publicly.
1. Registered Agent information is public record
The Registered Agent’s name and address are on public record. Companies can use public records to send you junk mail, or post your address online.
If you aren’t bothered by your address being public, being your own Registered Agent is a great way to save money.
If you’d like to avoid your address being made public record, we recommend hiring Northwest Registered Agent instead. Northwest will let you use their business address throughout your LLC formation paperwork. This helps keep your address off public records.
Special offer: Hire Northwest to form your LLC ($39 + state fee), and you'll get a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
2. You have to be available to accept Service of Process
Registered Agents are required to be physically present at the Registered Agent address on file with the state to accept Service of Process. If you are listed as your LLC’s Registered Agent, that someone is you.
Some people don’t want to be glued to a single address from 9-5 every day just in case Service of Process arrives.
That said, if you’re already going to be at the same physical location every day during normal business hours, this can still be a great option for you (as long as you don’t mind that address being on public record).
3. You could miss an important document
The reason that state laws require someone to be physically present at the Registered Agent’s address is to make sure that important documents are received.
Missed documents can result in missed filings and court deadlines. This is why Registered Agents exist. And they’re an important part of how our legal system works.
If the state or the courts need to reach your business, they will make contact with your Registered Agent.
By requiring Registered Agents to be present at a physical address during normal business hours, the delivery of court documents can be accurately tracked.
If you aren’t present and available at the Registered Agent address on file during normal business hours, you might miss an important state notice or legal document that arrives for your LLC.
This could happen if you travel often or forget to check your mail.
That’s why it’s important to be present and available at the Registered Agent address on file during normal business hours, and to regularly check your mail in case Service of Process arrives.
4. You could be served publicly
Being your own Registered Agent means accepting Service of Process. And getting served legal documents in front of neighbors or clients could feel embarrassing.
That said, most people never get served.
What are the requirements to be your own Registered Agent?
If your Registered Agent will be a person (like you, a friend, or a family member), that person must meet the state’s Registered Agent requirements.
This generally includes:
- being at least 18 years old
- being a resident of the state where the LLC is located
- having a physical address in the state
- being available during regular business hours to accept Service of Process
- being comfortable with your address being on public records
So which is better: being my own Registered Agent or hiring a Registered Agent?
If you meet the state’s Registered Agent requirements, being your own Registered Agent can save you money.
If you (or a friend or family member) don’t meet the state requirements, you’ll need to hire a Registered Agent Service (also called a Commercial Registered Agent).
Many Registered Agent Services also offer LLC Formation Services. In this case, hiring a Registered Agent Service can also save you time.
Our favorite company is Northwest Registered Agent. Northwest has been in business for over 20 years and they have excellent customer support.
Northwest also offers a bonus benefit when you hire them to form your LLC: they’ll let you use their address throughout your LLC filing. This unique benefit helps keep your personal address off of public records.
Special offer: Hire Northwest to form your LLC ($39 + state fee), and you'll get a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
FAQs
How do I choose a Registered Agent?
Choosing the right Registered Agent for your LLC depends on your specific business needs.
We’ll guide you through your options and how to choose a Registered Agent, so you can confidently pick the best one for your LLC.
How to become a Registered Agent
You can become a Registered Agent for your LLC by:
- making sure you meet the state requirements, and
- listing your information in the Registered Agent section of your LLC formation paperwork.
For more information, please read How to become a Registered Agent.
Can a Registered Agent be held liable?
No, Registered Agents aren’t liable for any of the LLC’s lawsuits or debts.
Accepting documents on behalf of the LLC doesn’t bring Registered Agents into a lawsuit.
If you are the Registered Agent and someone sues your LLC, they are still only suing the business. The Registered Agent doesn’t get sued.
That’s true even if you are the Registered Agent and the owner of the LLC.
And only the LLC gets sued – not you, as the individual owner. That’s because an LLC protects your personal assets.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.