Pros and Cons of a Registered Agent Service
A registered agent is the official contact person for your business, required for all state-owned, same-state businesses. They receive important mail like the State Procedural Department, Secretary of State’s correspondence, and other official government notifications, like tax forms, for your corporation or LLC. Good registered agents aren’t just there to collect documents for you – they have to do various things like tax returns, reports, and make sure your business meets regulatory requirements. These are things that you or a friend of yours, if elected as a registered agent, cannot do. Here we have listed the pros and cons of getting a service.
No additional paperwork
When you hire a registered agent, you may find that the cost of an annual service is well worth the cost of not having to follow official notices and annual report due dates. Hiring a good registered agent service means they’ll have a system that tracks your reports and tells you when they’re due, so you don’t have to worry at all. This means you can spend less time worrying about things like deadlines and putting away important documents, and invest that time in your business instead, making you more money.
Registered agents have specific legal requirements that they must fulfill: have a physical location and be available at that location at all times during normal business hours, in order to accept service of the proceedings. If you choose to be your own registered agent, it’s fine if you usually stay in the office and have one.
But, having a registered agent means you can travel regularly if you need to and work flexible working hours instead of having to do the regular 9am to 5pm work.
If you work from home and are your own registered agent, you will provide your home address on a public record. This means that anyone who wants to officially contact your business can find your home address. This can be worrying for some people, while others don’t care. If that’s you, having a registered agent means their address will be listed instead. In the age of “big data”, you could find your address strewn anywhere, and state records are permanent. It is therefore worth considering.
No physical address
If you are a small business working on the web, you may not have a physical location and do not want to list your home. So, hiring a registered agent service solves this problem as they can get all the mail for you.
You may also not have a physical address because you are from another state and looking to expand your business. In every state in which your business operates, you must register with the state, and for this reason, many owners choose to use a registered agent service to comply with state regulations. . It is not allowed to just have a post office box in a state – it must be a physical location. This is also great because all of your notices important to this condition are being handled by someone else, so there is no need to worry.
This is the only real big ass in hiring a registered agent service. Registered agent costs vary from state to state, but the average price tends to be between $ 50 and $ 300, plus state taxes. It’s definitely more expensive than being your own registered agent, which is completely free.
Hiring a registered agent service definitely has more pros than cons. But at the end of the day, whether you’re going to hire one or not, it’s really up to you. For example, if you are always on duty during regular business hours and do not travel often, it may be more convenient for you to be your own registered agent. However, if any of these reasons, like having more time to work due to less paperwork or privacy, affects you, it’s a great idea to hire a registered agent.
TRUiC provides more information on whether to hire a registered agent service or not. Visit their site to learn more.