Introduction:
As a business owner, you may be wondering if you are able to be your own registered agent. A registered agent is a person or entity that provides the address for the paperwork of the business, which includes items like annual reports and tax filings. In the United States, every business is legally required to have a registered agent. In most states, it is a requirement to be a business owner and not just an employee. The rules vary from state to state on whether or not you can be your own registered agent, but in many cases you are able to.
Registered Agent Requirements:
As mentioned above, every registered business owner must have at least one individual or entity that serves as the registered agent for LLC in New York the business. This requirement is important for legal reasons and keeps paperwork and tax records flowing for your company. Each state has different regulations about who can serve as a registered agent and what information must be available in order to do so.
In some states there is no requirement to have a registered agent, but in others this may be a requirement. It may also vary from county to county if you need to have someone else serve as the registered agent for your business.
You will probably want to make sure that your business is ready for being its own registered agent before you do this. Having someone else as the company’s representative can come with a lot of responsibility and liability if things go wrong, like not filing taxes or getting a report in on time. You will likely need to hire an outside company that specializes in serving as a registered agent to help make sure your company stays compliant and up-to-date on the paperwork needed.
Need to Know:
Some states state that you will need to be ready to file paperwork in order to act as the business’ registered agent. This usually involves notifying your local office of the Secretary of State’s office that you will be taking on this responsibility. They may then require you to get liability insurance, open a business bank account, and have an attorney review your legal documents if you are going to be acting as the company’s registered agent for them.
It is also important for you and your other business partners or shareholders to make sure that they have signed or updated a Legal Name Changes form with the Secretary of State’s office as well. This will likely be needed in order to update the state’s records regarding the company’s registered agent.
Filing Status:
In the United States, if your business is a Corporation or LLC, you always need a registered agent. If you are using a Corporation Service Company or foreign entity to run your business, you can choose to be the registered agent if that structure is legal in your state. You will still need someone else to serve as the registered agent for your business if you’re doing an LLC.
If there is no requirement for a business owner to act as their own registered agent, it is possible that this may be on an opt out basis for most states. This means that if you are able to choose to be your own registered agent, but you do not, you may still be subject to penalties like fines or audits. It is also important to note that not having a registered agent can still leave your business vulnerable and with legal exposure.
Most businesses will need someone else besides the owner to hold this position. This can be an individual who is a shareholder in the company or a service company such as Secretary of State Services. This person will likely need to have liability insurance and open a business bank account before they can be considered for this position as well.
Considered a Subsidiary:
If your business is considered a subsidiary, then it should be able to act as its own registered agent. This will likely apply to businesses that are owned by a parent company or other corporation. In this case, the subsidiary is still responsible for keeping things up-to-date and may be responsible for any penalties or fines incurred by the company if the registered agent does not fulfill their obligations.
The main reason why a business needs to have an owner serve as their own registered agent is because it helps keep paperwork and tax records flowing without too much trouble for both the owner of the business and the state regulatory offices.
Conclusion:
While it is possible for a business owner to be their own registered agent, it may be more practical to have an outside entity do this for them. This will likely be more reliable and in compliance with state regulations as well. The benefits of having a business owner serve as their own registered agent is that they are familiar with their financial records and can quickly pull them up when needed. They also know the right local and federal offices that need to be updated when the company changes its registered agent.
