Registered agent for LLC?

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jeninhrco
Posts: 7
Joined: Wed Apr 04, 2018 10:11 am

Registered agent for LLC?

Post by jeninhrco » Sat Apr 14, 2018 7:17 pm

Quick question. We will need a registered agent (a place where court papers can be delivered, if needed) in another state. We have a professional contact who's willing to do it for free but hasn't done it before. Businesses who do this regularly (just act as registered agents) charge about $50 a year and presumably would know what their job is and how to do it. Do you think it makes sense to go with the paid people? We haven't dealt with this before.

For the nature of the business, we certainly don't anticipate being sued but anything is possible, hence the legal requirement for the registered agent. Thanks!

aude
Posts: 228
Joined: Sat Feb 11, 2012 11:06 pm

Re: Registered agent for LLC?

Post by aude » Sat Apr 14, 2018 7:46 pm

I’m a corporate lawyer but of course I don’t have the specifics of your situation so this is not official legal advice. I know that disclaimer is annoying!

This really comes down to how much you trust the individual to notice and forward correspondence to you quickly upon receipt. The official registered agent services are good about scanning and forwarding correspondence immediately. There could be important if someone is suing you, for example, given that many states permit something like 21 days to respond to a lawsuit. The individual should also be comfortable receiving service of process (court papers) from a process server or a sheriffs deputy. That is no big deal, but some people are intimidated by it. Hope this helps.

jeninhrco
Posts: 7
Joined: Wed Apr 04, 2018 10:11 am

Re: Registered agent for LLC?

Post by jeninhrco » Sun Apr 15, 2018 11:25 pm

Thank you for taking the time to reply! I appreciate it.

jminv
Posts: 373
Joined: Tue Jan 02, 2018 10:58 pm

Re: Registered agent for LLC?

Post by jminv » Sun Apr 15, 2018 11:52 pm

For $50/year I would go with a registered agent to 1.) avoid imposing on the contact and 2.) avoid any issues that could arise if, say, they mishandled it. $50/year seems a very small price to pay for that.

naturaforver
Posts: 8
Joined: Sun Feb 18, 2018 5:58 pm

Re: Registered agent for LLC?

Post by naturaforver » Mon Apr 16, 2018 1:55 pm

Sorry not providing a response but this thread elicits a question. Is it better to register in another state than where in residence, am curious why any small business would do that?

bsteiner
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Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: Registered agent for LLC?

Post by bsteiner » Mon Apr 16, 2018 2:16 pm

jeninhrco wrote:
Sat Apr 14, 2018 7:17 pm
... Businesses who do this regularly (just act as registered agents) charge about $50 a year ....
Are there any that do it for that price. The usual suspects are more expensive.
naturaforver wrote:
Mon Apr 16, 2018 1:55 pm
... Is it better to register in another state than where in residence, am curious why any small business would do that?
Some small businesses do business in more than one state.

Also, if an entity will only be doing business in one state, while some lawyers find it easier to form it in that state, others prefer to form all of their entities in Delaware and then have them qualify in the state where they're doing business. In that case, they'll need a registered agent in Delaware.

It's not only for lawsuits. You can serve a subpoena for corporate records on the registered agent.

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