When creating an LLC business, a registered agent is required. Many new entrepreneurs may be compelled to list themselves as their own registered agent, however, this is not a good idea. Before we discuss why you do not want to be listed as your own registered agent for LLC, you must first understand what a registered agent is.
The sole purpose of a registered agent is to accept services on behalf of your business. By services, we mean legal documents that are being served to your business. These legal documents could be things such as lawsuits, demand letters, cease and desist letters, or any other legal action against your business.
The first step in any legal action against your business is to be put on notice that you’re being sued or served with some form of legal action. When someone takes this initial step against your business, they serve the notice to the business’s registered agent.
Responsibilities of Registered Agent for LLC
There are specific responsibilities that the registered agent for LLC has. Since their sole purpose is accepting services on behalf of your business, they must be at their listed location at all times during regular business hours to make sure that your business is able to be served at any time. If you list yourself and your home address as the registered agent then you must be at home every business day between the hours of 9 AM and 5 PM. This means no vacations, no work outside the home, and no leaving the house for lunch. Basically, you are stuck in one spot; which is why you should not be your own registered agent. If someone attempts to serve you and the registered agent is not available in the location listed they cannot have a perfect service. This means the person trying to serve you then has to find another means to do so; usually done by the secretary of state or they publish the notice in the local newspaper. The issue with those routes of notice is they rarely get received and you could end up with default judgments against you. This means if someone is suing you and you do not receive the notice you will not know about court dates. If you do not show up to a court date then the judge assumes the allegations of damages are true. The judge then enters a default judgment against you awarding them whatever amount in damages they asked for and your business is liable for that judgment. You could become liable for a hefty lawsuit against your business because you did not get served as the registered agent for LLC and therefore did not show up to defend yourself in court. This is why business attorney Briana Robertson highly recommends you do not list yourself as the registered agent but instead go through another company or service that offers registered agent services. These companies and services’ sole purpose is to be available. This means they will always have someone on staff and available at the listed location for you. Giving you the peace of mind that you will be notified of any documents you are served or court hearings you have. Allowing you to have a fair chance to fight allegations and defend yourself against any lawsuits that come your way.
Do you have questions about your business and how to keep it legally protected? If so contact business attorney and advocate Briana Robertson to schedule a consultation today!
Schedule a Consultation
Do you have questions about your business and how to keep it legally protected?
If so, contact business attorney and advocate Briana Robertson to Schedule a Consultation!
Comments