Do you need a Registered Agent service?
If you use an online incorporation company to form your LLC,
you're going to be asked if you want to pay for Registered Agent
services.
Registered Agent services aren't cheap. Many companies charge
$100-125 per year to act as your agent. So it's important for
you to know 1. Do you need a Registered Agent and 2. Should you
pay for one.
What is a Registered Agent
Every state requires that an LLC organized under its laws have a
registered (or resident, in some states) agent at a physical
location within the state. The purpose is for the government to
be able to deliver official documents to the LLC. The most
likely documents are tax forms and notice of lawsuits.
Basically, the Registered Agent is the place and person within
the State's physical jurisdiction on whom service of process can
be done. The State wants a physical person and place within
their borders whom they can go to with taxes and lawsuits.
If you are
forming an
LLC in the state where your business operates, you can
simply use your business office address. In this case, you are
your own Registered Agent. This is the most common arrangement.
Even if you operate your business out of your home, you can use
you home address for official service.
When do you need to pay for a Registered Agent service?
If you don't have a physical location in the state where you
formed your LLC, then you'll need to appoint a
registered/resident agent within that state to receive official
documents.
Example: You live in Missouri, but you formed your LLC in Nevada
(there'll be another post later about why this may or may not be
a good idea). Nevada is going to want a registered agent that is
located in Nevada to be able to serve with official
papers--a.k.a. lawsuits and tax notices (while Nevada has no
state income tax, they do have business taxes, for example on
gambling). If you don't have a house or office in Nevada to
recieve these papers, you'll need to hire someone who does to
accept these papers on your behalf. This person is a registered
agent.
Many incorporation companies will, for a fee, act as your
registered or resident agent.
About the author:
Simon Maher is a contributor to
LLC Made Easy.com .
