In many states, business entities may act as their own registered or statutory agent of record. It is always best to check with the Secretary of State in your locality to ensure adherence to the law. Some states require a third party agent. Let's review the pros and cons for taking on a third party agent.

On the one aspect, a third party registered agent provides a business with necessary anonymity. More specifically, business associates, customers and neighboring businesses are shielded from any legal proceedings because all due process is served through the registered agent. The downfall is for that entrepreneurs and small business owners who thwart control; they may not have it in them to thwart control. Giving control even for the smallest of tasks is sometimes very strenuous for certain personality types.

A third party registered agent also brings a layer of privacy to the table. An example of how this privacy is beneficial is in regards to junk mail. Mailboxes and e-mail boxes are full of it . . . almost every day. Because the registered agent's address is the one on record, management need not be bothered with junk mail any longer.

Again, take into account those who lack the concept of delegation and wish to control every aspect of their business. Either you have a third party registered agent and reap the benefits by leaving these contact and legal matters for them to handle, or take on everything yourself and succumb to the unwarranted stress sooner or later.

If your state allows for a variance in choosing a registered agent, it may just be worth researching third party agents further. If your state requires a third-party agent, choosing the right fit for your business is definitely in order.

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