Selecting a Registered Agent Service for your LLC
Selecting a reputable registered agent is imperative, because a registered agent that performs poorly can lead to serious trouble for your LLC. If legal documents fail to reach you, your company might be forced to pay thousands of dollars to plaintiffs simply because you failed to show up in court. Failing to appoint and maintain a properly working registered agent can also make you loose your LLC status altogether and this can have dire consequences, both legally and tax wise.
Being your own registered agent
It might be tempting to be your own registered agent; why pay someone to accept a few letters when you can do it yourself, right? Why relinquish control to someone who might perform poorly? Before you decide to be the registered agent for your LLC, you should however consider the practical consequences. A registered agent must always be available at the registered office address during business hour. Will you be able to stay in your office during business hours or will your business require you to leave the registered address once in a while, e.g. to help customers, see business associates or carry out bank chores? Maybe you even need to make out-of-town trips during business hours? Also consider how this will affect your private life. You wont be able to go an a vacation, tend a sick child or visit relatives if it means being away during business hours.
As a registered agent, you will accept legal documents on behalf of you LLC. If you use your company office, it means that subpoenas and other potentially sensitive documents may be delivered among clients, employees, businesses associates, and so on. If you work at home, subpoenas may be delivered in front of neighbors and family members.
Do you think that your company might relocate in the future, e.g. to a more spacious office or to another part of the city? Don’t forget that you have to go through the legal process of formally changing the registered agent address as well every time you move your business to a new address. It is also important to keep in mind that the registered agent must have a registered office in the state where the LLC was formed. If you relocate your company to another state, you have to appoint a registered agent in the formation state.
Hiring a registered agent
As mentioned above, it is very important to choose a well functioning registered agent. Many companies let their attorney be their registered agent, and there are also specialized registered agent services that function as registered agents for a multitude of LLC’s and other companies. If you plan on using some type of incorporation service to set up your LLC it can be a good idea to ask them if they offer registered agent service because it might be easier for you to negotiate a good price if you go for a package deal. Always compare several options before you make up your mind and don’t forget to consider the effects for your LLC in the long run.
For reasons stated above, it is important to choose an attorney, registered agent service or similar that will be able to always accept legal documents on behalf your LLC during business hours, regardless of holiday seasons, sudden outbreaks of disease and so on.
