Are LLC/Corp State Registered Agents a Scam?

[yellowbirdnj]

When someone goes to create a LLC or Corp, they are usually told that after the LLC/Corp has been created, they will need a registered agent for their respective state to receive official documents commonly centered around regulatory stuff and lawsuits during normal business hours. I've noticed that the average fee charged by these organizations are around $99 to $150 per year. My question to the experienced agents that own their own agencies is that is it worth it?

 

[Focus LTC]

When someone goes to create a LLC or Corp, they are usually told that after the LLC/Corp has been created, they will need a registered agent for their respective state to receive official documents commonly centered around regulatory stuff and lawsuits during normal business hours. I've noticed that the average fee charged by these organizations are around $99 to $150 per year. My question to the experienced agents that own their own agencies is that is it worth it?

If you are incorporating out of state then you need a physical address and a registered agent to recieve legal docs for your company at that given physical address. This is the service they are offering you. No one does this for free.

If you create and register your Corp in your home state, you can be the agent and you can use your own address. This is my suggestion. No need for tax shelters. You are not google, apple, etc.

 

[Tahoe Ray]

If you are incorporating out of state then you need a physical address and a registered agent to recieve legal docs for your company at that given physical address. This is the service they are offering you. No one does this for free.

If you create and register your Corp in your home state, you can be the agent and you can use your own address. This is my suggestion. No need for tax shelters. You are not google, apple, etc.

Unless you get sued...and then this is bad advice. Also, these rules vary by state.

 

[Yagents]

When someone goes to create a LLC or Corp, they are usually told that after the LLC/Corp has been created, they will need a registered agent for their respective state to receive official documents commonly centered around regulatory stuff and lawsuits during normal business hours. I've noticed that the average fee charged by these organizations are around $99 to $150 per year. My question to the experienced agents that own their own agencies is that is it worth it?

I started my S corp in FL, and used my own address as the reg agent. All a reg agent does is receive the legal papers, for the person being sued. It can be one in the same. When I moved to AZ, I kept the FL corp and had my FL CPA be my agent for no charge. If he doesn't want to do it, I have a friend in FL that will do it for me. It's no skin off their back, as they have absolutely no liability.

The reason to open an LLC or S corp is to protect your personal assets in a lawsuit.

 

[Tahoe Ray]

I started my S corp in FL, and used my own address as the reg agent. All a reg agent does is receive the legal papers, for the person being sued. It can be one in the same. When I moved to AZ, I kept the FL corp and had my FL CPA be my agent for no charge. If he doesn't want to do it, I have a friend in FL that will do it for me. It's no skin off their back, as they have absolutely no liability.

The reason to open an LLC or S corp is to protect your personal assets in a lawsuit.

Your registered agent address is a matter of public record. This increases your likelihood of receiving telemarketing calls, junk mail, etc. if you make it yourself.

An LLC/S Corp is great until a litigious person finds out who owns your company during an asset search. Not to say that they will win, but keeping this information private is certainly preferred...

Registered Agents - Why Your Company Should Use an Independent Registered Agent

Obviously, these companies want your business however most suggest that this is not a wise DIY strategy.

 

[pcbinsurance]

When I had an LLC, I used a local attorney friend of mine. He did it for free. No reason to pay $200 unless you have to.

 

[Tahoe Ray]

When I had an LLC, I used a local attorney friend of mine. He did it for free. No reason to pay $200 unless you have to.

Not to change the focus of the thread, but you said this in the past tense. Why are you no longer an LLC?

 

[pcbinsurance]

Once upon a time I was going to go the financial planning route and then I found the travel industry and spent quite a few years doing that, so I let the LLC go. I never got that business off the ground. Come to think of it, I've had two LLCs and one DBA in the past. I've learned the most about myself through my failures.

 

[Tahoe Ray]

Once upon a time I was going to go the financial planning route and then I found the travel industry and spent quite a few years doing that, so I let the LLC go. I never got that business off the ground.

Gotcha...I'm always curious as to other professionals' business structures and their motivations.

 

[Focus LTC]

Unless you get sued...and then this is bad advice. Also, these rules vary by state.

Are you suggesting that having a registered agent will shield your Corp from a law suit?

If someone files a lawsuit against a Corp that you own, you're going to get served one way or another.