To ensure your registered agent meets all requirements, the best course of action is to consult with each state your business operates in for exact qualifications and regulations. Ensure you cross-reference with all providers you're considering to ensure they meet your state requirements.
When appointing a registered agent, you can hire a service provider or do it yourself.
Every state allows business owners who meet the state's requirements to be their own registered agents, and there are positives to this option. The primary positive is that you'll save on costs by serving as your own registered agent. However, the cons might outweigh the benefits of the DIY option.
One of the most significant inconveniences of being your own registered agent is how it may impede your schedule and location flexibility since it requires you to be available at the registered address during normal business hours. Not only does this mean that you won't be able to work remotely, but you also won't be able to take sick days, go on vacations, or even step out in the middle of the day for an appointment without the risk of missing an important delivery.
Another downside is the potential privacy issue. If your business is home-based, you'll have to register your home address as your registered office. This isn't ideal for those who don't want their personal information and address to be on public record. If your registered office is your business place, being your own agent can still pose privacy concerns. You'll have to receive legal and tax documents at your business, including being served lawsuits, potentially in front of your employees and customers.
When you work with a registered agent service, you can eliminate all the disadvantages of being your own registered agent. Hiring a provider gives you the expertise of a business that specializes in providing this service. Outsourcing can help you feel confident that all your critical documentation needs and deadlines are being organized and taken care of so you can focus on running your business. And even though this option will add an expense, most providers charge a reasonable annual fee. In the long run, it's also more cost-effective than having a CPA or attorney be your registered agent.
Below is an infographic that will help you decide whether hiring a registered agent or doing it yourself is ideal for your business needs.