Yes- Many business owners who form an LLC serve as their own registered agent. A registered agent is, essentially, someone who you know will be able to receive mail for you. So, yes, you can be your own registered agent, but you might take into account a few things if you do.
You absolutely must, if you are serving as your own registered agent, make sure that the address you provide is one that you will be able to regularly receive mail at. The registered agent is responsible for the timely receipt of mail, including the service of any court documents or lawsuits. If you live nine months of the year in Wisconsin, and winter for three months in your beach house in Galveston or Corpus Christi, it would not be a very good idea to list your beach house as a registered agent address. If important court documents or pleadings are delivered to your listed registered agent, the court will very rarely give exceptions to you having not received them in a timely fashion.
There are some instances where you won’t really be able to serve as your own registered agent, such as when filing as a “Foreign Entity.” Any time a business operates in a state other than where they are incorporated, that business may have to register as a foreign entity conducting business in that state. Often, those states that require that registration will also require a domestic registered agent with an address within that particular state. As in our previous example, if your Wisconsin LLC does business in Texas, and you are required to register as a foreign entity, you would need a domestic registered agent (and as we previously concluded, this would not be your beach house you are only at three months of the year).
So yes, you may in many circumstances serve as your own registered agent but you will absolutely want to consider some of the factors discussed in this article. If you want to learn more about LLC formation in Texas, or entity management in general, Click Here. If you would like to connect with Texas LLC Formation Attorney Nathaniel Gilbert, Click Here.
Registered Agent Fees: DIY vs. Hiring a Service
While serving as your own registered agent is free, many business owners opt to hire a third-party service. The cost of a registered agent service in Texas typically ranges from $35 to $300 annually, depending on the provider and the additional services offered (like mail forwarding, compliance reminders, or handling legal notices). Hiring a service can save you from needing to be physically present at the registered address during business hours and offers greater privacy (your personal address won’t be on public record).
- Cost Savings of DIY: If you serve as your own agent, you avoid these fees entirely but take on the responsibility of being available to receive legal documents.
- When a Service Might Be Worth It: If you travel often, operate in multiple states, or simply want to maintain privacy, a registered agent service can offer peace of mind and convenience.
Changing Your Registered Agent Online in Texas
The state of Texas makes it relatively straightforward to change your registered agent online through the Texas Secretary of State’s SOSDirect website. The process involves filing Form 401 (Statement of Change of Registered Agent/Office), which can be done electronically with a filing fee of $15 for LLCs.
Steps to Change Your Registered Agent Online:
- Access your business profile via SOSDirect.
- Complete the online form to update your registered agent’s information.
- Pay the filing fee to finalize the change.
Once the change is processed, the new agent will officially take over responsibilities. If you’re transitioning from serving as your own agent to hiring a service, the new agent should provide instructions for a seamless transition.
Using a PO Box as a Registered Agent Address in Texas
Unfortunately, Texas does not allow the use of a PO box as your registered agent’s address. The registered agent must have a physical street address in the state where your LLC is formed or doing business. This is because the agent needs to be available during regular business hours to accept important legal documents, and a PO box does not fulfill this requirement.
- Why a Physical Address is Required: Courts and government agencies need to ensure that legal documents, like lawsuits or tax forms, are received by a responsible party. A PO box cannot offer this guarantee.
If privacy is a concern, consider using a third-party registered agent service, which will provide a physical address for legal documents, shielding your personal home address from public records.
Privacy Implications of Being Your Own Registered Agent
Serving as your own registered agent means your personal address will be listed in public records, which can raise privacy concerns. Your home address, if used, will be searchable by anyone—including marketing companies, creditors, and even individuals filing lawsuits.
- Public Disclosure: Texas business filings are public records, and anyone can look up the registered agent’s address. This means your personal address will be exposed if you serve as your own agent.
- Mitigating Privacy Risks: To maintain privacy, many LLC owners choose to hire a registered agent service, which will use their business address instead of yours. This keeps your personal information private and helps prevent unsolicited mail or visits.
Frequently Asked Questions (FAQs)
Registered agent services typically charge between $50 and $300 per year, depending on the services provided. Being a registered agent is not typically a paid role unless offered as part of a third-party service.
Yes, you can change your registered agent online by filing Form 401 through the Texas Secretary of State’s SOSDirect portal, with a $15 filing fee for LLCs.
No, Texas law requires a registered agent to have a physical street address in the state. A PO box cannot be used because the agent must be available to receive documents during regular business hours.
Using your personal address as your registered agent means it will be part of public records, which can lead to privacy concerns, including unsolicited mail and increased exposure to lawsuits. Many business owners hire a registered agent service to keep their personal address private.
Contact us today for a free consultation. To consult with Nate directly regarding any questions you might have, Click Here. To read more about Business Law and Management, Click Here.
