Should You Be Your Own Registered Agent? (Repair The Roof Podcast)

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“Your time and peace of mind are valuable assets in themselves. By opting for a professional registered agent service, you're not just ensuring compliance, you're investing in your business's stability and your own sanity."

What if the decision to save a few bucks could expose your home address to the public and disrupt your daily life with the snap of a finger? Join Attorney Ted Gudorf as he spotlights the often-missed yet critical decision of whether to act as your own registered agent for your business. Ted unpacks the responsibilities involved, potential privacy risks, and how this choice can impact your business's legal standing.

From understanding the legal requirements to exploring the concept of "going dark" to protect your personal information, Ted provides an in-depth analysis that will have you rethinking your strategy. Weighing the pros and cons, he lays out why hiring a professional service might be a wise investment to avoid unexpected legal pitfalls and maintain seamless business operations. Listen in to gain essential insights that could protect your business from significant legal and operations headaches.

Key Topics:

  • What is a Registered Agent? (01:50)
  • Can You Be Your Own Registered Agent? (03:45)
  • Important Items to Consider Beforehand (04:19)
  • The Benefits of Using a Service to Be Your Registered Agent (06:39)
  • Changing From Being Your Own Registered Agent to a Company (07:40)
  • Where to Find Further Assistance (09:22)

As retirees, many of us are exploring new ventures or maintaining businesses we've built over the years. One crucial aspect of business ownership that often flies under the radar is the role of a registered agent. This seemingly minor decision can have significant implications for your business's legal standing and your personal peace of mind.

In this comprehensive guide, we'll delve into the world of registered agents, exploring what they are, why they matter, and whether it's wise for retirees to take on this role themselves. By the end of this article, you'll have a clear understanding of the pros and cons, helping you make an informed decision that protects both your business and your retirement lifestyle.

Key Takeaways

Before we dive deep into the details, here are the core insights you'll gain from this article:

1. A registered agent is crucial for receiving legal documents and official correspondence for your business.

2. While you can be your own registered agent, it comes with significant risks and responsibilities.

3. Using a professional registered agent service offers numerous benefits, including privacy protection and peace of mind.

4. The decision to be your own registered agent can impact your retirement lifestyle and business operations.

5. There are affordable alternatives to being your own registered agent that can save you time, stress, and potential legal issues.

What is a Registered Agent?

Definition and Purpose

A registered agent, also known as a statutory agent or agent for service of process, is an individual or entity designated to receive official correspondence and legal documents on behalf of a business. This role is mandated by state law for all formal business entities, including LLCs, S corporations, and C corporations.

To serve as a registered agent, one must meet certain criteria:

  • Have a physical address within the state where the business is incorporated
  • Be available during regular business hours to receive documents
  • Be at least 18 years old (for individuals)

Primary Functions

The main responsibilities of a registered agent include:

1. Receiving service of process (legal papers) in case of a lawsuit

2. Accepting official government correspondence

3. Receiving tax documents and notices

4. Forwarding received documents to the appropriate company representatives

Can You Be Your Own Registered Agent?

The short answer is yes, you can serve as your own registered agent for your business. However, this decision comes with a set of considerations that are particularly relevant for retirees.

Pros of Being Your Own Registered Agent

1. Cost Savings: By acting as your own registered agent, you can save on the annual fees charged by professional services.

2. Direct Control: You have immediate access to all documents received, potentially allowing for quicker response times.

3. Simplicity: For small, home-based businesses, it might seem like the easiest option.

Cons of Being Your Own Registered Agent

1. Privacy Concerns: Your personal address becomes public record, visible on state websites.

2. Availability Requirements: You must be available during business hours to receive documents.

3. Vacation Limitations: Taking extended trips could compromise your ability to receive important documents.

4. Stress and Responsibility: The burden of ensuring timely responses to legal documents falls entirely on you.

5. Public Embarrassment: Being served with a lawsuit at your home or in front of clients can be uncomfortable.

The Importance of Privacy for Retirees

As retirees, we often value our privacy and the peace that comes with a well-earned retirement. Being your own registered agent can significantly impact this aspect of your life.

Public Record Exposure

When you act as your own registered agent, your home address is listed in public records. This means anyone can find your personal information with a simple online search. For retirees, this exposure can lead to:

  • Increased junk mail and solicitations
  • Potential security risks
  • Unwanted visitors (like process servers) at your home

Case Study: The Retired Business Owner's Dilemma

Consider the story of Margaret, a 68-year-old retiree who maintained a small consulting business. She decided to be her own registered agent to save money. However, she soon found herself dealing with:

  • Constant interruptions during her volunteer work due to document deliveries
  • Anxiety about missing important legal notices while on her annual month-long vacation
  • Uncomfortable situations when process servers showed up at her home during family gatherings

Margaret's experience highlights the hidden costs of being your own registered agent, particularly for retirees who value their time, privacy, and peace of mind.

One of the most critical aspects of being a registered agent is the proper handling of legal documents. For retirees who may be less familiar with current business practices or legal requirements, this can pose significant risks.

Understanding Service of Process

Service of process refers to the delivery of legal documents that notify an individual or business that a lawsuit has been filed against them. As a registered agent, you're responsible for receiving these documents and ensuring they reach the appropriate people within the company.

The 28-Day Rule

In many jurisdictions, including Ohio, there's typically a 28-day window to respond to a lawsuit after the registered agent is served. Failing to respond within this timeframe can result in a default judgment against your company.

Consequences of Missed Deadlines

Missing the deadline to respond to a lawsuit can have severe consequences:

1. Default Judgment: The court may rule in favor of the plaintiff without hearing your side.

2. Financial Losses: You might be liable for damages without having the opportunity to defend yourself.

3. Damage to Business Reputation: Legal issues can harm your business's standing in the community.

4. Personal Stress: Dealing with the aftermath of a missed legal deadline can be incredibly stressful, especially during retirement.

The Benefits of Using a Professional Registered Agent Service

Given the risks and responsibilities associated with being your own registered agent, many retirees find that using a professional service is a wise investment. Here are some key benefits:

1. Enhanced Privacy

A professional registered agent service uses its own address for public records, keeping your personal information private. This is particularly valuable for retirees who want to maintain a low profile or separate their business and personal lives.

2. Consistent Availability

Professional services are always available during business hours, ensuring that important documents are received promptly, even when you're traveling or enjoying retirement activities.

3. Expert Document Handling

Registered agent services have established processes for quickly identifying, scanning, and forwarding important documents to you or your legal representative.

4. Peace of Mind

Knowing that a professional is handling this crucial aspect of your business can significantly reduce stress and allow you to focus on enjoying your retirement.

5. Compliance Assurance

Many registered agent services offer additional compliance support, helping you stay on top of filing deadlines and other legal requirements.

Cost Comparison: DIY vs. Professional Service

While cost is often a consideration, especially for retirees on a fixed income, it's important to weigh the potential savings against the risks and hidden costs of being your own registered agent.

DIY Costs (Often Overlooked)

  • Time spent managing documents and maintaining availability
  • Potential legal fees if documents are mishandled
  • Privacy-related expenses (e.g., P.O. box rental to avoid using home address)
  • Stress and lifestyle impact

Professional Service Costs

  • Annual fee (typically $100-$300 per year)
  • Additional services may be available for extra fees

When you factor in the peace of mind and reduced risk, many retirees find that the cost of a professional service is well worth the investment.

How to Change Your Registered Agent

If you're currently serving as your own registered agent and want to switch to a professional service, the process is typically straightforward:

1. Choose a reputable registered agent service.

2. File a change of registered agent form with your state's Secretary of State office.

3. Pay the required fee (usually a nominal amount).

4. Update your business records to reflect the change.

Many states, including Ohio, allow you to complete this process online, making it quick and convenient.

Choosing the Right Registered Agent Service

When selecting a registered agent service, consider the following factors:

1. Reputation: Look for established companies with positive reviews from other business owners.

2. Service Area: Ensure they can serve as your agent in all states where you do business.

3. Technology: Check if they offer online access to your documents and notifications.

4. Additional Services: Some companies offer compliance calendars, document storage, and other helpful features.

5. Cost: Compare pricing, but remember that the cheapest option isn't always the best value.

Conclusion: Protecting Your Business and Retirement

As we've explored throughout this article, the decision to be your own registered agent or use a professional service is more than just a simple business choice – it's a decision that can significantly impact your retirement lifestyle and peace of mind.

While being your own registered agent might seem like a cost-saving measure, the potential risks and responsibilities often outweigh the minimal savings. For retirees, the value of privacy, uninterrupted leisure time, and reduced stress cannot be overstated.

By opting for a professional registered agent service, you're not just ensuring compliance with legal requirements; you're investing in your business's stability and your own well-being. It allows you to focus on what truly matters – whether that's growing your business, enjoying your retirement, or both.

Before you make your decision, take a moment to reflect on your current situation:

  • Are you comfortable with your personal address being publicly available?
  • Can you guarantee your availability during business hours throughout the year?
  • Do you have a foolproof system for handling important legal documents?
  • Is the stress of this responsibility worth the potential savings?

If you find yourself hesitating on any of these points, it might be time to consider a professional registered agent service. Remember, your time, privacy, and peace of mind are valuable assets – protect them as diligently as you would any other aspect of your business or retirement plan.

Ultimately, the choice is yours, but armed with this information, you're now equipped to make an informed decision that aligns with your business needs and retirement goals. Here's to smart business decisions and a worry-free retirement!

*This blog post is based on the insights shared by Gudorf Financial Group. For personalized advice tailored to your unique circumstances, always consult a financial, legal, or tax professional.*

Transcript: Prefer to Read — Click to Open

Ted (00:05.87)

Hello everyone. My name is Attorney Ted Gudorf. Welcome to the Repair the Roof podcast. This name comes from President Kennedy’s famous quote, The time to repair the roof is when the sun is shining. In this show, we help individuals and families learn more about all things estate planning and elder law. Ever wonder if you could save a few bucks by being your own registered agent for your business? Before you jump at that idea, let me ask you this.

Are you willing to have your home address plastered all over the public records, particularly having it posted on the Ohio Secretary of State’s website? Or how about having to drop everything to receive legal documents at any given moment during business hours when you’re served with a lawsuit? Well, today we’re going to dive into the often overlooked world of registered agents. It’s a decision that can make or break your business’s legal standing.

Whether you’re running an LLC, an S corporation, or a C Corp, stick around. By the end of this video, you’ll know whether being your own registered agent is a smart move or a ticking time bomb for your company. Trust me, this is one business decision you sure as heck don’t want to get wrong. Hi everyone, this is Ted Goodarff from Goodarff Law Group. Today’s topic is going to be about should

be your own registered agent for your business. This is a very important decision that each of us needs to make. So the first question we have to ask ourselves is, what is a registered agent? A registered agent is an individual or person identified in the public records. Typically, for instance, in Ohio, it would be the Ohio Secretary of State’s office. Almost all jurisdictions

have a secretary of state or a similar public entity where the registered agent is identified. Their purpose is to receive notices and documents on behalf of the business. Now, the registered agent can be a business or it can be an individual. The legal requirements for a registered agent is that they must have a physical address within the state where

Ted (02:34.614)

entity is incorporated. In addition, they have to be available during business hours to receive the notice that is attempted to be served on them. Most of the time, the registered agent is being served with a lawsuit. That is the typical function of the registered agent. Now, once the registered agent receives

of a complaint that’s filed. They are required to notify the business so that the business can retain an attorney. Now, there are very strict time requirements for this process. Typically, a lawsuit must be responded to within 28 days after the registered agent is served with process. Otherwise, a default judgment can be entered against the company.

And that could be really detrimental. The next question is, can you be your own registered agent? And of course, the law will allow any individual, including the owner of a business, to be the registered agent for any business. Again, remember, the requirements under state law are that you have to have a physical address within the state and be available for service of process during regular business hours.

It is also possible to hire a separate company to serve as your registered agent. And that’s something that you ought to think about, something that you ought to consider. What are some of the reasons why you would not want to serve as your own registered agent? First and foremost, just know if you’re the registered agent, your address is going to be published on the State of Ohio website.

and everybody is going to be able to have access to that. At the end of the day, you’re going to be contacted for a lot of junk mail as well as potentially service of process issues. One of the things we talk a little bit about when we do asset protection is for individuals who own businesses to what I call go dark. That is to remove their name, to remove their address.

Ted (04:59.832)

from the public record so that they can’t be easily tracked down. Well, if you’re forming a company and you’re serving as your own individual registered agent, just know that your physical address is going to be out there for everyone to see. In addition to having your name out there in the public record, just remember you have to be available during regular business hours to receive service of process.

All of us have busy lives, particularly when we’re at work. Do you really want to be interrupted by a process server in the middle of the day when they’re looking for you to serve you with potentially a lawsuit? Do you really want to have to think about always being available for somebody to serve you with service of process? The other thing to think about is at your business, do you have a process

by which mail or other service of process can be received and is properly channeled to the owner of the company versus being tucked away in some employee’s desk. Just remember, there can be a significant downside if your company is served with process and no response is ever filed. Is that some responsibility that you want to take on?

by serving individually as your registered agent. It seems simple, but in practice, it can be detrimental. So if you utilize a service to be your registered agent, what are the benefits of using a separate company? Well, first of all, you’ll understand that it is going to hopefully make sure that if you’re served with process,

then the company, you as the owner of the company, are going to be made aware of it. And you’re going to be able to contact your attorney to make sure that a response to any kind of litigation is filed on a timely basis. Secondly, you’re to make sure that any service of process or other notice is properly scanned and stored on behalf of the company.

Ted (07:25.238)

And of course, if you use a separate company, your personal address will not be listed. Instead, the registered agent’s address will appear on the public record. If you’ve already formed a company and are currently serving as the registered agent and want to change to a company to serve as your registered agent, there’s a fairly simple process for that to occur.

In the state of Ohio, this can all be done online. There’s a small fee that has to be paid in order to change the registered agent. But the good news is these days it can all be done online. So in conclusion, I would like to tell you that you can be your own registered agent for any or all of your companies. However, there is a potential serious downside. If for some reason,

service of process is made upon you or the company and you fail to notify your attorney, then you may default and a default judgment may be entered against you. On the other hand, just know that there is an alternative. You can hire a registered agent company to serve in that capacity. It will be their information that’s on the public record. And therefore, anybody who is looking to contact the company won’t even know that you exist.

that company name will appear, they’re the ones who will get the phone calls, they’re the ones who will get the junk mail, they’re the ones who will get the legal notices, and you will not have to participate in any of that. It should relieve a significant amount of mental stress or burden knowing that if you’re going to get sued, that there’s somebody else who’s going to be responsible for letting you know and notifying

If you decide that you want to have a conversation about whether you should serve as an individual registered agent or whether you should hire a company, please let us know. Here at Good Art Law Group, we have formed a separate company called G Agents LLC to serve as registered agent for many of our clients’ businesses. That service is available and it’s very affordable. Our current rates

Ted (09:53.23)

are $175 per year per entity. And if you have multiple entities with common ownership, we’ll cap that at $500 total. You can contact our office and just simply ask for registered agent services and we’ll be more than happy to send you our fee agreement. So there you have

While being your own registered agent might seem like an easy way to cut costs, the risk and potential headache far outweigh the minimal savings. From privacy concerns to legal repercussions, the downsides are significant. Remember, your time and peace of mind are valuable assets in themselves. By opting for a professional registered agent service, you’re not just ensuring compliance, you’re investing in your business’s stability and your own sanity.

You’ll have the flexibility to focus on what truly matters, growing your business. Before you go, take a moment to consider your current registered agent situation. Is it truly serving your best interest? If you’re unsure or looking to make a change, now’s the time to act. Until next time, here’s to smart business decisions and peace of

Ted (11:16.352)

Until our next session, just remember the time to repair the roof is when the sun is shining. To get started with your estate plan, can go to gudorflaw .com forward slash getting started. For a free copy of our recently published book called the Ohio estate planning guide, go to gudorflaw .com forward slash

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